Financial Inclusion of Excluded Segments

2 FINANCIAL INCLUSION OF EXCLUDED SEGMENTS - LEARNING FROMEXPERIENCE DELIVERY OF FINANCIAL SERVICES TO PEOPLE WITH DISABILITIES

Acronyms ................................................................................................................................................. 3

Executive Summary .............................................................................................................................4

1 AnOverview–PwDasmicrofinanceclientsegment....................................................... 7

2 MFIsreachtoPwD:aCatalystandaKnowledgePartner ..............................................9

3 ProgresshighlightsatMFIlevel ...............................................................................................13

4 Requisitesforreplicationandpotentialforintegrationwithexisting

financialservices ...........................................................................................................................17

5 Keylessonsfromtheproject .................................................................................................. 20

6 PolicyandotherrecommendationsforfinancialinclusionofPwD ..........................22

References .............................................................................................................................................24

CONTENTS

3FINANCIAL INCLUSION OF EXCLUDED SEGMENTS - LEARNING FROMEXPERIENCE DELIVERY OF FINANCIAL SERVICES TO PEOPLE WITH DISABILITIES

ACRONYMS

CBOs CommunityBasedOrganizations

CFI CenterforFinancialInclusion

CRCs CompositeRegionalCenters

CGAP ConsultativeGrouptoAssistthePoor

DFI DevelopmentFinancialInstitutions

DPI DisabledPeoplesInstitutions

ESAF EvangelicalSocialActionForum

IT InformationTechnology

IVR InteractiveVoiceRecording

KYC KnowYourCustomter

HR Human Resource

MFI Micro Finance Institution

MIS ManagementInformationSystem

MFIs Micro Finance Institutions

NGOs NonGovernmentalOrganisations

NHFDC NationalHandicappedFinance&DevelopmentCorporation

NIs NationalInstitutes

PwD Persons/PeoplewithDisability

TAT TurnaroundTime


Financial inclusion may be definedas the process of ensuring access

to financial services and timely andadequate credit where needed byvulnerable groups such as weakersectionsandlowincomegroupsatanaffordable cost (The Committee onFinancial Inclusion, Chairman: Dr. C.Rangarajan).

This paper, based on a uniquepioneeringprojectthathighlightstheurgencyandtheneedtofocusonlargelyunreached Persons with Disability(PwD). With condition of poverty,severe social barriers, annihilated fornot being ‘normal’, associated withsuperstitions,muchneedstobedonetomeltdownthesocial,physicalandinformation barriers for persons with disability.Fullfinancialinclusionwouldneed access to a suite of financialservices – for meeting contingencyneeds, investment needs, capacityenhancement, improving livingconditions and so on. In this contextPwD is an excluded community andalongwith them a number of otherswho due to gender, social, religious,ethnic,regionalreasonscannotaccessanytypeoffinancialservice.

The Centre for Financial Inclusion(CFI)atAccionInternationalhassetanagendaoffullfinancialinclusionoftheexcludedpeoplebytheyear2020.Aspartofthismandate,theCFIhasdrawnthe attention of the microfinanceindustry in India and world-wide toengage in a planned and systematicefforts for financial inclusionof PwD.Along with its knowledge/ trainingpartner,v-sheshLearningServicesPvtLtdandtheverycommittedanddrivenMFIs (Annapurna Microfinance PvtLtd, Evalengical Social Action ForumandEquitas)thegrouphasembarkedon mission to reach PwDs. The partner

EXECUTIVE SUMMARY

MFIshadworkedwithPwDs,however,the previous experience of workingwithPwDhasbeenbydefaultornotin a systematic manner. This projectwhichisstillon-going(Implementationphase),hascomeupwithsubstantiallearnings, that policy makers,development (finance) institutionsand the microfinance industry candelveupon.Hereisasummaryofkeylessonsandrecommendations.

• Persons with disability wouldlike tobe treated as ‘normal’ andthat they are able and capableto access financial services.Institutions working with PwDshould accept and respect thisfact. A key barrier to this is‘perception’ and ‘attitude’ of thepeople/institutionswhoworkwithPwD. The project demonstratedthatsystematicawarenesstrainingand employment of PwD withinthe institutioncanclearlysupportinbringingperceptionandattitudechange.

• Commitment of MFI Board andmanagement is quintessential todriveeffortsforenablingoutreachto PwD. However, considerableefforts would also be requiredto augment staff awareness inidentifying disability and alsoovercome certain preconceivednotions about PwD. The role ofhuman resource department toinclude such training as part ofmainstreamstaffcapacitytrainingis important.

• In employing persons withdisability, MFIs have gainedan extremely gratifying andsupportive experience. Havingpersons with disability as partof team has helped MFIs toimprovestaffunderstandingabout


disability,provide inputstocreateenabling environment and that aholisticdemonstrationofbeing insocialbusiness.

• How to identify person withdisability? With certainty all theMFIshaveexpressedthisasanewlearning. MFIs had persons withdisabilityasclient,butbydefault.7 short questions developed andadapted in thisproject isausefultool to identify persons withdisability. This can be includedbyMFIsaspartof front-endstaff(loanofficer)training.

• Simple changes that lead torefineme nt of processes at MFIlevel can facilitate outreach toPwD. Access audits assist MFIto draw down a systematicplan toward process refinementand adopt universal designapproaches. Differentiation ofloan documentation throughtactile method, audio-visual toolsfor marketing and transactioncomprehension, facilitatingformationofmixedgroups(personswithandwithoutdisability)andsoonarea fewsimplechanges thattheMFIshavemade.

• Continuing with process refine-ment,averypertinentchangethatcanbeincludedistocapture‘dis-ability’factor,andthesub-catego-ries(likevisuallyimpairment,hear-ingimpairment,orthopedicimpair-ment). Thisdata canbecapturedas part of regular MIS. Tracking

portfolio performance over timewill help understanding lendingriskandtestthe‘myth’itself.

• The need for education and skillbuilding is underscored for PwDand also for thosewho face ex-cluded, vulnerable and margin-alized. Low education, low skillscoupled with poverty lower thecapacity of the borrower to takebusinessrisksorcompeteforem-ployment.Investmentinprogramsandinstitutionalfacilitiesthatpro-videlearningandskillbuildingop-portunityfortheexcludedmustbeundertaken/promoted.

• MFI have niche capacity to connect tothelastmile.Progressivemodi-ficationintheexistingcomplianceguidelines that assist product in-novationandmovefromcredittoinvestment participation structure must be debated. Loans for edu-cation, skill building, housing im-provement and so on are of highimportance not just for the high-er class, but also for the masseswhich look forward to an upwardmobility. This aspiration must berespected.

To conclude, we need to run aCampaign, a movement that couldworkasaforceforawarenessonPwDandcombiningefforts for addressingthe issue of their financial exclusion.Without this, there would be a fewnoteworthy cases which may not be enough.


The case study focuses on theunique,pioneeringinitiativeinIndia

undertakenbytheCenterforFinancialInclusion(CFI)atAccionInternationalinpartnershipwithv-sheshLearningServicesPvtLtd. (v-shesh)and threeMicro Finance Institutions (MFIs)in India – Annapurna MicrofinancePrivate Ltd (Annapurna), EvangelicalSocial Action Forum (ESAF) andEquitas Micro Finance Pvt Ltd(Equitas)onfinancialinclusionofPwDandprovidesomevaluablelessonstothemicrofinanceindustryinIndiaandworld-wide on understanding needs

andaspirationsofPwDandhowafewconscious methodology changes byMFIs can go a long way in assistingfinancialinclusionofPwD.

Thisstudymakesacaseforoutreachto PwD for the Indian microfinanceindustry. The case study is primarilydrafted through secondary literaturereviewasprimarydatacollectionwasnotpossibleduetotimelimitation.Theprojectisinimplementationphaseandhencethedocumentationonprogressandlessonslearnedisintermediate.

FinancialInclusionofExcludedCommunitiesandGroup–PeoplewithDisabilities(PwD)–LearningfromExperience


On 27 March 2014, World HealthOrganization declared India

a polio free country with no caseof disease being reported in theprevious threeyears.Ahuge successfor a government led program,with support from numerous civilsocietyorganizations, individuals andinternationalinstitutions.Itiscertainlya proud moment for the largestdemocracy with over 1.25 billionpopulation. For a common person inIndia,poliowasahugething,probablytheonlydisabilityfearforanexpectingmother and family andhencecertainlevelofmentalpreparednessonwhatmaygowrong.Withover2decadesofPulsePoliomission,therewasamassunderstanding about the ailment,lessons about lives of the peoplewho were already affected and withreductioninabsolutenumberofcases,thefaiththatitcanbecuredordealthwith.Unfortunately,thisisnotthecaseformanyotherdisabilitiesthatpeoplemay suffer, some linked geneticallyand many accidental to a perfectlybornhumanbeing.

PwD include those who are visuallyimpaired(cannotseeorfinditdifficulttosee),deaf (cannothearorhave touse a hearing aide) and those whoare physically impaired (restrictedmovementornotabletowalkatall).AccordingtotheGovernmentofIndiaCensus Report 2011 there are over 26

million1 that is 2.1%of thepopulationwith one or other kind of disability.Among the total disabled in thecountry, 15 million are males and 12million are females. State-wise datashows, Andhra Pradesh, Maharashtra,Odisha and Jammu and Kashmirhavemorethan2.51percentdisabledpopulation whereas in Tamil Nadu,Assam,MeghalayaandNagaland, thepercentageislessthan1.75.

The Constitution of India ensuresequality, freedom, justice and dignityof all individuals and implicitlymandates an inclusive society for allincludingthepersonswithdisabilities.The Department of Disability Affairs(Nishaktata Karya Vibhag) wascreated in 2012 under the Ministryof Social Justice and Empowerment.The Government of India runs sevenNational Institutes (NIs) dealingwith various types of disabilities andseven Composite Regional Centers(CRCs), which provide rehabilitationservicestoPwDsandruncoursesforrehabilitation of professionals. TheCRCs also funds a large number ofNGOs for similar services and also aNational Handicapped Finance andDevelopment Corporation (NHFDC)whichprovides loans at concessionalrate of interest (5%-8% per annum)and loan amounts ranging fromINR25,000 to INR25,00,000 as perschemetoPwDorNGOworkingwith

1 AN OVERVIEW – PWD AS MICROFINANCE CLIENT SEGMENT

1 InanarticlepublishedinGuardianProfessional,9October2014,PRajasekharanhashighlightedthattheestimationonPwDismuchhigher,nearly70million,asperaWorldBankReport.


PwD.Theseincludeloanforsettingupsmall business, agricultural activities,professional/educational training, skilldevelopmentandsoon(Source:http://socialjustice.nic.in/nhfdcnew.php).

Disabled people carry a lot of socialstigma and this begins within thefamily extending to society at large.Viewedas“notbeingnormal”,disabledpeoplearekeptaway fromanysocialmingling and also regarded as badomen. The result is complete loss offaithandconfidenceamongstthePwD,thattheytoocanleadanormallifeandacceptedas theyareby family,peers,friendsandsociety.Hencebreakingthesocialbarriersisthefirstandforemostchallenge.Thesepersonsfacephysicalbarriers(includinginformationbarrier)in accessing almost everything andfor those who cannot afford modernfacilities or gadgets it is a realimpediment. They cannot be heard,cannot access facilities and cannotreachoutforanysupport.So, in Indiait is not just the case of couple ofthousands,butofmillions.Thepaper-ANewFinancialAccessFrontier:Peoplewith Disabilities published by CFIrevealsthatoutofthetotalnumberofMFIclientsglobally,currently,onlylessthan1%isPersonswithDisability.

Key challenges for low level of financial inclusion among PwD

• Limited outreach of existinggovernmentsupportedschemes.

• Low understanding on needsof PwD as prospective clientsegment.

• Lack of awareness among MFIsof thechallenges facedbyPwDinaccessingmicrofinance.

• Indifferent attitude of peers(among community) and MFIstaff.

• Existingservicesandinstitutionalfacilities are not accessible toPwD.

• Typical MFI growth modelwith low scope for innovationin product and services oremploymentforPwD.

Trueandfullfinancial inclusionwouldmean that everyone and anyonewho needs access to a full suite ofquality financial services, providedat affordable prices, in a convenientmannerandwithrespectanddignity.Hence MFIs, as lead institutions thatbank the unbanked, reachout to thepoor, reach out to the neglectedregionsandcommunities,mustmakeconsciouseffortstoreachouttoPwDandnurturethisclientsegment.


tools forfinancial inclusionofPwD isquite large. The partner MFIs in thisproject, Annapurna and ESAF, havetheirrootsindevelopmentalactivitiesthat focuson social impactand theirmicrofinanceprogramdrawsfromthisgrassroots experience for designinga robust financial inclusion strategy.Equitas,anewgenerationMFI,withitstechnologydrivenbusinessprocesseshasbecomeacrediblemarket leaderandisamongstthetopMFIsintermsofoutreachandbusiness.

Launched in April 2013, the projectis being implemented in Odisha(Annapurna), Maharashtra (ESAF),Tamil Nadu and Madhya Pradesh(Equitas). Theproject plan is dividedinto five key phases, the phases andvarious activities undertaken as partofeachphaseareenumeratedbelow.

2 MFIS REACH TO PWD: A CATALYST AND A KNOWLEDGEPARTNER

CFI at Accion launched in 2008withamission tobringabout full

financial inclusion around the worldby the year 2020. It aims to build astrong business case for providingnon-subsidized financial services forpeoplewithdisabilities.Itstrivestodosothroughstrategicpartnershipswithdisability organizations to achievemaximum outreach and scale. CFIpartnered with v-shesh an impactenterprise that prepares studentsand job seekers with disabilities andthose from rural area for suitableopportunities and assists employersin access and inclusion of PwD andaggregationofruralareatalentpools.Havingworkedwithandforpeoplewithdisabilities, v-shesh’s understandingof this client segment is immense.Hence, its institutional capacity toprovide the subject knowledge and

Table: Project phase and key outputs

Phase Key OutputsPrep-phase 1. Develop common understanding on scope and scale of the project S u r v e y -phase

1. Survey and Market Research • Provide feedback to CFI on the disability survey for MFI staff• Analyze findings of MFI staff survey • Design the methodology for FGD / survey of PwD clients• Conduct FGD’s and surveys of sample MFI PwD clients (at each

of the four partner MFI locations)2. Develop basic market size estimates of PwD clients at each of

the four locations through meeting / interviews with officials of EmploymentExchangeforPwD,VocationalRehabilitationcentersandNGO’sworkingwithPwD

3. Identify local organizations working with PwD in consultation with the Partner MFIs


Phase Key OutputsSensitization High level Sensitization session & develop training material

1. Conduct Disability Sensitization Workshops for Management and Board of MFI and other key stakeholders with an objective to motivate and prepare the leadership to move from disability awareness to action

2. Design and Review training material for disability inclusion and deliver microfinance sector customized disability awareness training content. Key content include – Disability myths & facts, Diversity in disability, Disability etiquettes, Do’s & don’ts and tips for interacting with PwD, material to be then translated to local languages.

3. Conduct Train the Trainer sessions in each location and identify the right “champions” as trainers from partner MFIs; develop a “Do it yourself” kit for delivering disability sessions & begin facilitating MFI trainers to deliver disability awareness sessions at other two locations.

Accessibility & Audit phase

4. Access Audit to evolve Universal Design principles for MFI branches and Reasonable Accommodation

- ConductAccessibilityAudits onMFI branchoffices (onemodelbranchforeachofthe4MFIs).TheauditincludeMFIprocess(rightfromgroup formation to loandisbursement / repayment) auditfromthepointofviewofaccessibilityforpeoplewithsensory&physicalimpairment.

- Documentrecommendationsforassisteddevices/technologies,and accommodation measures; and share results and seekfeedbackfromMFIpartnersthroughaworkshop(oneateachofthefourpartnerlocations).

- DevelopdraftMicrofinanceIndustryprinciplesforUniversalDesign&standardsforReasonableaccommodation

Implementa-tion-phase

1. Facilitate partnership with local organizations working with PwD - IntroduceMFItolocalorganizationswithPwDidentified- Review training material developed by ACCION for DPOs on

IntroductiontoMicrofinance- ConducttrainingoflocalorganizationsonMicrofinancebasics- Facilitateinteractions/fieldvisitstoprogresstheconversation

2. Facilitate company-wide sensitization session- Continueguiding theMFI trainers to sensitize&propagate the

messages,dispeldisabilitymythsandprovidepracticalguidancetoworkwithdisabledclients

3. Test assisted devices / Technology Solutions for disability inclusion- Implementandtesttheassistedtechnologies/accommodation

measuresandfinetunebasedonfeedback- Test, evaluate & fine-tune the process improvements made

for disability inclusion (including those with visual & hearingimpairment).

4. Human Resource Policies - Conduct workshops with HR & recruiting managers to create

enablingpoliciesandproceduresforPwDhiring- DocumentenablingpoliciesandproceduresforPwDhiring

5. Monitoring & Review - Conduct review sessions with Management & Board of MFI,

trainers- Conductworkshopwithtrainersonvalueofsensitization;share

experiencesandbestpracticesHandover-Phase

1. Develop checklists, manuals and tools for easy guidance / reference for MFIs to sustain measures for disability inclusion

2. Monitor and handhold the field and branch teams to implement / conduct initiatives with the customized manuals and tools.


Each MFI has nominated one personfrom the seniormanagement as pointof coordination for the project. Thisis important to ensure highest levelcommitment for driving the missionandobtainthedesiredresults.

Survey phase: Thedesignandplanningforthevarioussurveystobeundertakenwas completed by the v-shesh team.TheroleofpartnerMFIwasintermsofallocatingfieldareaforsurvey.ForeachMFI,atleastoneurban/semi-urbanandone rural site were selected. Surveyon attitudes and perceptions of theMFI front end teamwas conducted inpersonandformanagementlevelstaffon-linesurveysweredone.TheactivitiesthatwereplannedforSurveyphaseandcould not be implemented include –theestimationofPwD in the selectedsites and identification of institutionsworking with PwD. Identification ofDisabled Peoples Institutions (DPIs)andsettingupaco-ordinationplatformalongwithMFIwouldneedaseparateintervention,againtheviewabouthowaprofitmakingMFIcanunderstandandworkwithpeoplewithdisabilityremainsthere.Beforegoingforwardthiscriticallinkage and the dialogue needs to beaddressedalongwiththeDPIs.

Sensitization phase: This involvedconductingofworkshopsandtrainingsfor the management team as well astheMFI front-endteam.Akeyactivitywas also designing and testing of theworkshop and training modules andthe suggestions and inputs duringthis phase would assist in finalizationof trainingdesign and tools that formkey output for the Handover phase.At v-shesh, this is a priority and its

project team played a crucial role toplay in terms of training design anddelivery.GoingforwardoncetheMFIsinternalize the training programs,qualitycontrol isexpectedbytheHRdepartment,asaregularfunction.

Audit phase: v-shesh has completedthe access audits and has shareddetailedoperationsprocessrefinementrequirements with the MFIs. Access audits were conducted by v-sheshteam by visiting MFI Branches andobservingclientinteractionpointwithMFI staff. Basedon the PwDcontactpointwithpartnerMFIs,v-sheshteamshared a list of refinement processesthat would ensure mitigation ofphysical and information barriers.Access audits, from the perspectiveof creating enabling facilities andservices for personswithdisability isnovel for microfinance industry andhence the toolsdeveloped sowill behighlycrucial forMFIs foradisabilityfriendliness check. The scope ofprocess change required woulddepend on definition of operationsmethodology, various operationsprocesses and how in perspective offair practices guidelines, operationsprocessrefinementcanbeundertaken.

TheImplementationphaseison-goingand there is progress is in terms ofcertainpolicylevelchangesandcom-mencement in refinement of opera-tionsprocessesforaddressingphysicaland information barriers for personswith disability. It may be reiteratedthatactivitieswithrespecttoidentifi-cationofDPIsneed tobecompletedto understand the scopeof interven-tionrequiredbyeachpartnerMFI.


The following table provides a summaryof feedback received fromMFI staffduringvariousprojectphases.

Table: MFI staff feedback

Survey/research stage

IsitnottooriskytoincludePeoplewithDisabilities?

Bettertogivegrant.

Howtocategorizeapersonasdisabled,ifmedicalinterventionmayhelprectifyit?

Notawareofdisabilityornon-discriminationprovisions.

DPIs may not be supportive.

Sensitization stage Onlyawareofphysicaldisabilityandblind.

Notsurehowtoidentifydisabled.

Charitymindsetisprevalent.

Howtotrainsomanystaff?Whattotrainthemin?

Access audit stage System/processchangescomplicated.

Changesmaybeexpensive.

Implementation stage

DPIs not positive about MFIs

Howtoservepeoplewithmentalillnessandthosewithintellectualdisabilities?

HowdoweidentifyPeoplewithdisabilitiesandkeeptrackofprogress?

(Source:ProjectTeam,v-shesh)


As mentioned earlier the projectimplementationphase inongoing

and hence progress highlights arepreliminary in nature. Yet, significantwayforwardcanbedrawnfromsurvey,awareness training (sensitization)andaccess audit phases. However, sincethecrucialphaseofImplementationisstillunderwayandHandoverphaseyetto commence, the progress reportedis not complete. The key output intermsoftools,manualsandinteractivelearning material from the project tobe considered for an industry-widedisseminationwillbecrucial.

Policy modifications: All the threeMFIsreframedtheirnon-discriminationpoliciestospecificallyincludementionof “disability” (in addition to sex,caste and religion). TheseMFIs havechanged their Human Resource (HR)policyclearlylayingthepathforbeinganequalopportunityemployer.

Awareness baseline: Disabilityawareness survey and focusedgroup discussion conducted withabout 1,000 frontline MFI staff andcommunity members to assess the attitudes/ awareness levels towardsPwDinclusion.Findingsfromthestudyhavebeenpublishedas ‘thepaperoftheweek’bytheConsultativeGrouptoAssist thePoor (CGAP).Thepaper istitled“AwarenessandAttitudetowardsPersons with Disabilities (PwD) inIndianMicrofinanceInstitutions”.

Awareness survey highlights

MFI staff demonstrated a good understanding of visible disabilities and also a good track record (over 70% stating that they have interacted with persons with orthopedic disability), but sensitization is needed to iron out finer issues in terms of inclusion of PwD as MFI client, rather than charity or welfare activities, as perceived by MFI staff especially in Maharashtra and Odisha. MFI staff (managers) expressed requirement for special training for field level staff, especially loan officers who manage client relationship.

Disability Awareness Training: Dis-ability Awareness Training forMasterTrainers completed in Odisha, TamilNaduandMaharashtra.Inallover100keyMFI staffmembers (loanofficers,branchmanagers,loan/clientofficers)have undergone a two day intensivetraininginthesaidthreelocations.Asanextstep,theMFIstaffmembershaveplannedtoembarkontraininganother6000+frontlineMFIstaffondisabilityawarenessandetiquettes.TheprojectWorkingGrouphasevolveda7pointKeyMessagesondisabilityawarenesstobespreadthroughthestaffbaseofover8000peopleandcommunityofover 1million people in the next fewmonthsandthatcanbedisseminatedtothemicrofinanceindustry.

3 PROGRESS HIGHLIGHTS AT MFI LEVEL


7 point Key Messages on disability awareness

1. Let us focus on ABILITY! Thinkaboutwhatpeoplecando.

2. Most PwDdo notwant or needcharity; like everyone else theyneedopportunity.

3. Communication and interactionwith people with disability ispossibleandnotashardasyouthink.

4. Manydisabilitiesarenotobviouslyvisible.

5. Disability is not just a medicalcondition. It isaconsequenceofsocialbarriers.

6. YouandyourMFIshouldnotbeanother barrier in society! You shouldbeanopportunity!

7. People with disabilities are alarge untapped client segmentwho could productively usemicrofinanceprovidedwe learnto reach out to them andmakeourservicesaccessible.

Access Audits: Disability AccessAssessments conducted at branchesof the 3 partner MFIs to understandtheir processes and suggestsuitable changes in their working toaccommodate persons with differentdisabilities.TheMFImanagementhasagreedtoincludeseveralmeasuresaspartofoperationspolicyandprocessesand the key ones are highlightedbelow:

Client registration form (loanapplication form) to be modifiedtoincludedataondisability.

MFIstafftobetrainedtoproactivelyidentifying and including PwDthrough7simplequestions.

1. Do you always have a lot ofdifficultyinseeing?

2. Do you use a hearing aid/havebeenadvisedtouseone?

3. Do you always have a lot ofdifficultyinhearing?

4. Do you always have a lot of

difficultywalkingshortdistanceorclimbingfewstairs?

5. Do you always have a lot ofdifficulty doing your dailyroutine?

6. Doanyofyour familymembershavelotofdifficultyremember-ingorconcentrating?

7. Doanyofyour familymembershave mental illness (experienceseveredepression,mood swing,etc.)?

Importantdocuments(Passbooks,applicationforms,loanrepaymentsheets, receipts) to be convertedinto accessible formats (tactilecodingtobeused).

The critical steps in MFI lendingprocess – Compulsory GroupTraining, Group Recognition Test,Appraisal, Group meetings to beconducted in accessible formats.Basic universal design conceptto be followed so that the newmaterial is useful to all (includingforsemi-literate/illiterateclients).MFI staff to know basic signsfor communicating with deaf;communication / other materialtobemadeinsimplevisualformatalong with audio recording.Clear instruction to be issuedto allow PwD clients to bringon accompanying person for allinteractions.

Loanbalanceandotherdetails tobe available through InteractiveVoice Recording (IVR) Helpline,making loan information andcomplaint redressal systemaccessibleforblindclients

MFIs to reach out to DisabledPerson’s Organizations acrossdifferent states to ensure awideroutreach to potential disabledclients.

Workshops and trainings to beplannedtoensurePwDclientsareincluded, especially ones thatwillpromote their business initiatives and provide them with suitablemarketlinkages.


PwD as MFI Client: As on October 2014, three MFIs have reported tohave reached 17,500 persons withdisability (Equitas: 10,000 (includingBlind1700),Annapurna:2,700+,ESAF:5,000+) and the total loan amountdisbursed to them is approximatelyINR270million(USD4.5million).Whilethereisnobaselinedataonoutreach,onecannotethepositiveprogress.

PwD Client and Staff feedback: MFI staff has since played a proactiverole inenlistingPwDasmicrofinanceclients and also the partnerMFIs areproactivelyreviewingtheircandidatureasjobseekers.

Case 1: Employment with MFI, Annapurna

Raniis24yearsold,currentlyworkingas an MIS Executive in Annapurna. At theageoffourhermotherdiscoveredaphysicaldisability inherdaughter’slower limbs which would inhibit herfrom walking properly. In the initialdays at Annapurna, she was afraidof being discriminated by her fellowemployees, but the MFI cultureand policies gradually inducted hergracefullyasaspecialmemberoftheCompany. She is independent andproud to be earning and leading herlifewithdignityandrespect.

Case 2: A mixed Group-PwD and non-PwD group, Equitas

The energy and enthusiasm of themembers and especially the centerleaders is highly admirable. Thegroup comprises three orthopedicwomen along with other non-PwDmembers, all of whom are involvedwithdifferentbusinessactivitiessuchas tailoring, detergent and phenylmaking, beauty salon and soon. Thewomenareenthusiasticandexcitedattheprospectofbeingabletosociallyandeconomicallysupportthemselvesandeachotherandwouldinturnliketo help and support their PwD peermembersdothesame.

Case 3: Person with reduced mobility at ESAF

Nitinisa23yearold,anMBAFinanceand currently works with ESAF. Hethinksthathemightnotbefitphysicallybuthismentalabilityisasgoodasanynormalperson.Hebelieves thatgoodeducation can make him as good asanynormalperson.WorkingwithESAF


he says, has been truly satisfying forhimashehasbeengivenajobprofileon par with any other MBA Finance graduate within the company. Hefeels encouraged when he is ableto deliver his work on time and hisreporting officer appreciates this.He emphatically says, “I don’t havetodependonothers formyfinancialneeds”.

Incentives and Recognition: MFIs havestartedrecognitionmechanisms/awardsto incentivizebranchesthathavedonewelltoincludePwDclients.TheMFIscelebratedtheInternationalDay of Persons with Disability(December 3, 2013) and rewardedgood performing MFI staff and PwDclients.Thetopmanagementofeachof the threeMFIs specifically reviewsthe disability inclusion initiatives andnumberofPwDclientsasoneof the

keymetric in the each branch’s andalso the company’s performancedashboard.Somenovel initiatives forimproving disability inclusion in thesociety have been initiated by ESAFby takingupapublicchildren’sparkinNagpurandincooperationwiththelocal corporation, applied universaldesignprinciples toconstruct a fullyaccessiblepublicpark.

To summarize the progress at MFIlevel, it is highly commendable tonote the refinement in operationsprocessesundertakenbyallthethreeMFIsandcertainlythiswouldnothavebeen possible without managementcommitment.

The following table reveals howrefinement in certain processes byMFIs will enable outreach to andfinancialinclusionofPwD.

Deaf Blind Ortho Illiterate1 During the initial promotion event (door to door survey, word

or mouth promotion, sessions in Anganwadis/ local community works and Disbaled Peoples Insitutions, DPIs) and during group trainings, inform people that loans have been made accessible to PwD -Inform MFI's policy of disability inclusion and Sensitize group members for includng PwD; (2) Discuss and consider introducing incentives to groups for inclusion

Y Y Y Y Y -

2 Loan officers need to be trained and sensitized to including PwD clients - Guidance for Identifying PwD - Use 7 basic questions to record disabilityApplication Forms need to include disability status and type of disabilityEnsure that the Application Form accurately captures whether the client is PwD and what is the nature of their disability

_ Y Y Y Y _

3 Visual cues and simple signs to reiterate loan terms, interest rates, repayment amount and collection, etc. - Method of visual iteration (combined with verbal as used currently) would be useful for both deaf and illiterate clients

Y Y Y _ _ Y

4 Helpline can be setup for asking questions and registering complaints, loan balance and other facilities. This would be useful for blind and persons with orthopedic disability as well as illiterate clients

_ Y _ Y Y Y

5 Distinguish by tactile means, the following documents - Application FormPassbook/ Loan Card and LabelsCash Receipts

Y Y _ Y _ Y

Sr. No. Action Items Low Cost High ImpactSolution will benefit

Table: Process refinement by MFIs


Timetested,theIndianmicrofinanceindustry is a quick learner and in

thepast fewyearswehaveobservedthat severalmandates andguidelineshave been absorbed very quicklyby the industry. These include theNBFC-MFI certification guidelines,implementation of RBI Fair Practicesguidelines,andatamoreoperationallevel - data submission to the creditbureaus, NBFCs allowed to workas BCs, and the most recently-implementation of standard KYCdocumentation requirement for MFIclients. Hence, it is intuitive thatinclusionof PwD shouldbe a naturalintegration for MFIs who carry themandate of provision of financialservices to the poor, vulnerable andmarginalizedpeople.

Basedonthelargerindustryexperienceof working with excluded populationandthespecificsofthiscasestudythefollowing comments with respect toreplicationareenumerated:

Strategic initiatives: thereisnodearthof valuable strategic partnerships inthemicrofinancesectorandthereareFoundations, Financial Institutions,Self Regulatory Organizations thatcan play a pivotal role and theseinstitutions have demonstratedbandwidth to experiment, learn anddisseminate lessons,either inclusivelyoratleastoneaspectinaspecializedway. Hence, there could be manymore strategic players (the catalyst).Besides theNBFCs, there are severalCommunity Based Organizations(CBOs)whoworkisspecificlocations,

havedeeperunderstandingon livesof the communities that they workwith.Hence,CBOsshouldnotbeleftoutofsuchstrategicpartnerships.

Regional initiatives: AsstatedbytheIndiaCensusReport(2011)thehighestnumber of PwD is found inAndhraPradesh, Maharashtra, Odisha andJammu and Kashmir. These are thestates wherein significant strategicpartnership, in-depth research andcertain long terms initiatives couldbeundertakenforfinancialinclusionofPwD. Not limiting themselves toloans,MFIscouldproactivelyincludesavings accounts, insurance andremittancesintheirsuiteoffinancialservices.LinkingsucheffortstolargermandatessuchasPrimeMinisterJan-DhanYojanaandSkillIndiacampaigncan also be considered. MFIs thatpromote formal developmentforums, may consider investing infinancial literacy, skill development,languagelabsforPwD.

Integration with existing financial services: the MFIs can themselvestaketheinitiativetoleadtheprocessof financial inclusion of the PwD.The results from this projectwouldrequire wider dissemination alongwithtoolkitandmanualsthatwouldguideMFIsonastep-wiseapproach.A key aspect would be Board andmanagement commitment, as dem-onstrated by the partner MFIs, andalsowillingness to incorporate spe-cific changes within the Companypolicyframework.Aperiodicreviewofimplementationofextensionoffi-

4 REQUISITES FOR REPLICA-TION AND POTENTIAL FOR INTEGRATION WITH EXISTING FINANCIAL SERVICES


nancialservicestoPwDatseniorman-agementlevelisessentialanduntiltherefinedprocessesarecompletedinte-grated within the existing operatingstructures, theMFIcoulddesignateaseniorteammembertoleadtheproj-ect. Employing personwith disabilitycould be an enabling beginning thatwill demonstrate the commitment oftheMFIandalsoprovidecruciallearn-ingwhiledealingwithPwDasMFIcli-ents.

Area surveys are usually conductedby MFIs before commencement of operations thatmap socio-economic,political,competitionanddetailedde-mographicdataofprospectiveclients.Board and management may reviewwhether the current policy leads toexclusionofcertainsectionsofpopu-lationorcommunities, includingPwD.Collection of data about socially ex-cluded community and PwD couldformpartofareasurvey/mappingex-ercises. This will provide valuable in-formation for a meaningful financialinclusionofallwithinthelocality.

Another aspect with respect to integration with existing financialserviceswouldbeofferingstandaloneproducts and the options for MFIclientstochooseproductaspertheirfinancial need. This would require acertain levelof sophistication in termoftechnologyandmayalsoneedMFIsto build the requirement in existingpolicy framework. NBFCs can nowworkasBusinessCorrespondent(BC)forbanksandthisprovidesMFIswithanother opportunity to offer standalone products to its clients thatincludeasavingsaccounts,remittanceservice and also loans for business,education, housing improvement andso on.

Technology platform: LeadMFIssuchas Equitas, Ujjivan Financial Services,Janalakshmi Financial Services and afewmorehavemadeconsiderablein-vestment in Information Technology(IT)platformtostreamlineoperationsprocesses,bring in transparency,effi-ciencyandenablequickandinformeddecisionsandtofacilitatecustomerre-lations.Withthesestandardsinplace,itshouldnotbetoodifficulttomigrate

or accommodate an additional tech-nology thatwill facilitate informationflow to and from PwD. As revealedin this case study, IT is usefulduringmarketing,sourcing,financialtransac-tions, grievance redressal and for fi-nancial literacy. Runningelaborate ITplatforms,especiallywithissuesaboutconnectivityinruralandremoteareasmaynotbealwayspossibleand fea-sible.Setting-upofruralBPOscanbeexplored-bothintermsofgeneratinglocalemploymentforPwDandmeet-ing information sharing requirementwithMFIclients.MFIswithbandwidthtodosomustinvestinsuchideas.

Sensitization and training of human resource:This isaspecialized job,asunderstandingperceptions,behaviourandvarioussocio-physicalconstraintsneeds deep knowledge about PwDand also basic skills in say signlanguage. But as stated earlier, theIndianmicrofinanceindustryisaquicklearnerandhenceacoupleofyearsofplannedawarenessprogramsforMFIBoard, management and front endstaffwhohandlecustomerrelationsisrequired.ExceptforthethreepartnerMFIs, there are no specific trainingtoolsandmoduleswithMFIstotrainMFIstaffonhowtoworkwithclientswith PwD and engage in specificprocesssuchasgroupformation,CGT,financial transaction with personswith disability. Access audits alsoneed handholding and this exercisecanbeinitiallyconductedwithhelpofexperts. Institutions such as v-shesh need to be engaged or reached outforMasterTrainingprogramsandalsoindustrylevelawarenessinitiatives.

Financial education of PwD: Financialeducation/literacy is a universalrequirement and all MFI clientsshould have access to informationand systems that promote financialliteracy. Persons with disabilityneed special tools and hence MFIs,institutions involved in promotion offinancial inclusion for PwD will haveto adopt appropriate techniques.Thereisconsiderabletrainingmaterialdeveloped by various capacitybuilding institutions on financialliteracy for illiterate MFI clients. Thisis useful and will have to be added


withmaterialandtoolsforpeoplewhocannot see or hear or are unable toreachout to training facilities.HereinidentificationandengagementofDPIswillbe importantwhoalsohavecoreexpertiseinaspectsofeducationandtrainingofpeoplewithPwD.

Toconcludethisdiscussiononmodelreplication,akeyfactoristheMFIboardvisionandmanagementcommitment.The role of HR department in MFI isverycrucialtokeepthestaffmotivated

as the front line staff do work inconditionofhardshipandtheyaretheones who ensure business for the MFI. ThequestionsthatwouldbeprobablyplayingonthemindsoftheMFIfrontend staff would be how refinementinprocesses affect the strict TAT foreach operations process, would theinitiative ofworkingwith PwD affecttheirincentivestructure,anynewrisksinvolved in lending toPwD, includingscopeforinsurancecoverage.Alltheseneedtobeaddressed.

MFI Feedback and Comments

Dibyajyoti Pattanaik (ChiefFinancialOfficer),Annapurna

It is in the DNA of Annapurna to work with people living in difficult conditions, include marginalized, minority, PwD, third gender and so on. During the course of the project, the management developed deep knowledge about PwD and specific inputs with respect to training, access audit, refinement of loan documents helped provide greater clarity on working with PwD. Hiring PwD helped change certain mis-conceptions about disability, especially amongst front end team. Providing loans could be risky this was another mind-set change that happened in due course of Annapurna’s work with PwD. There are challenges to work on – (i) parents are too protective and would not allow PwD to proactively engage with MFI, (ii) DPIs view that MFIs should take a welfare oriented view about PwD providing subsidized credit and (iii) enhancing education and skill level of PwD.

John Alex (HeadofSocialInitiative),EquitasGroup

Working with PwD is part of Equitas’ mainstream model and the MFI has been doing so since 2008, including capturing ‘disability’ in loan application form. The on-going project has provided clarity on identification of PwD and a conscious focus. Equitas is involved in number of social initiatives and is also associated with number of organizations to implement development work. There are some more ideas about use of mobile technology, setting-up a Helpline for PwD, education access for PwD in Equitas schools that the Company is planning to roll out.

Roy Alex(Director,Programmes),ESAF

This a unique project where in three MFIs who may usually work as competitors have come together. ESAF, working (as NGO) for last 32 years in developmental activities and also with PwD, but more from charity perspective. A key outcome of the project has been change in staff perception and the breaking of ‘myth’ that lending to PwD is risky. At grassroots level, PwD were by default part of sangam (group) and that they all repaid on time. ESAF would need to make certain modifications with respect to policy and processes and include services for PwD, such as – collections at doorstep, handholding for business plan and market linkages and so on. ESAF team is passionate about this work.

Source:Narrationbasedontelephonicdiscussion


Thefollowingnarrativecapturesthekeylessonssofar,bothintermsof

methodologyandprogress.

Need long term strategy: CFI at Accion,v-sheshandthepartnerMFIsdemonstrate a long term strategyand a commitment to work with theexcluded. Financial inclusion of theexcluded,notmerelynumbers,butthefactthatitinvolvesovercomingsocialbarriers and changing perceptionswould need time. Like CFI (Accion)has put a time line, the year 2020,MFIs toocoulddefine theirown timehorizon for refinement of processesthroughouttheirinstitutionandcreatean enabling environment for PwD toaccessfinancialservices.

Estimation of PwD and engagement of DPIs: Intheselectedlocationsandcontext, theprojectwouldhavedonewell to initially focus on the broadercontext. The two key elements –estimation of PwD and engagementof DPIs - are essential to know thescope of the project and also learnfromthelocalorganizationsthatfocuson persons with disability. This is ofrelevancetotheparticularMFIBranchaswellwhowouldthenbuildthescopeinoutreachplan.

The basic premise being that MFIsshould treat PwD as usual client andhence offer the same product andtermsandconditions. It appears thatthis proposition does not augur wellwith DPIs who have certain strongviews about ‘profit making MFIs’.Probably this is the view of evenother stakeholders in the community.

EmphasisonfeedbackfromPwDthattheyneedtobetreatedasnormalandon par like anyone else needs to besubstantiatedwithdata.Disseminationof such finding would create anenablingenvironment forMFIs to rolloutfinancialproductsandservicestoPwD.

Baseline data at MFI level: Theprojectdoes not provide documentation onbaselinedataaboutPwDasMFIclients.Hence, the partner MFIs for all newloans disbursed from a certain date,mayaffixthebaselineinformationandtrackprogressaccordingly.Equitashasbeenproactivesince2008inprovisionof loan to persons with orthopedicdisability and blind and hence dohave record of outreach numbers.Documentary evidence goes a longway in institutional learning and alsoassists in documentation of impact.With changes made in applicationform and MIS to include “disability”indicator on-going tracking will beeffective. Baseline data for impactstudiesmaybeconsidered.

Standardized but flexible tools and manuals: As a key output of thisproject-toolsandmanualstoconductawareness and training programsneedstobestandardizedtoacertainlevel, with a scope to refine processas per operations methodology. Thismaterial should be shared with MFIsand CBOswhowork in the space ofprovision of financial services. MFIswould need expert inputs on accessaudits, utilization of tactile method,usageofkeysigns,basicsignlanguageandalsosupportduringcustomization

5 KEYLESSONSFROMTHEPROJECT


process for each financial servicesinstitution.

Technology- mobile money and SMS technology:There isgrowing interestofmicrofinanceindustryingraduatingtoacashlessandhasslefreeservice–especiallyloanandremittances–toitsclients. PwDwill benefit from this, asboth technology enabled visual andaudio information flow is possible.There is a cost factor that needs tobeworked out by each MFI, yet thisisverymuchpossible.M-Pesa isverypopularandtherearemanyotherMFIswhich are planning or have startedgraduating toward mobile transfersas financial transaction medium forMFIclients.AutomatedSMSmessagesthat provide information on loanamount, loan balance, transactionsmadecouplewithvoicemessagesareafewsimpletechnologyoptions.Indiais ranked second in termsof numberofmobile users in theworldwith 74mobile connections per 100 citizenswhichshowsgreatpotentialformobileledfinancialinclusioninthecountry.

PwD as employees: We are aware that there are strong perceptions aboutPwD in terms of their competence and ability and hence besides staffawarenessactivities,providingsuitableemployment opportunity to personwithdisabilitybyMFI isastep in therightdirection.Wehaveseenthissteptaken by the three partner MFIs andtherewillcertainlybemanymoresuchexamples. Such initiatives assist MFIinfinetuningitspoliciesandobtainaperspective that may be entirely leftout. The key challenge would be toemploy PwD as front end staff (loanofficer) with MFIs whose operationsmethodology includeextensive travelplan.Thiswillbeachallengeformostof the MFIs and hence employmentto PwD may not have direct impactwithclients.MFIscouldsourceeligiblecandidate for other positions fromwithin MFI client segment, this will

spreadgoodwordaroundandfacilitateminglingandbreakafewbarriers.

Inclusive approach: Taking the cuethat the PwD need to be treatedas any other MFI client, initiative toformmixedgroups(personswithandwithout disability) would work well.Armedwithdisablefriendlymarketingand client interaction techniques,theMFI loanofficercan facilitate theprocess.Thekeywouldbe toexplaintermandconditionsforeachproductoffer seamlessly. This could be achallenge as terms and conditionswith respect to group formationand loan agreement that tend to becomprehensive and oral narration orsimple tactile formatmaynotdo thejobcompletely.Thiswillalsobetrueincaseoffinancialtransaction,butheregroup/family member could be ofsomeassistance.Thisisoneaspectallthe project stakeholdermay need todelve further, as priority requirementwithrespecttoNBFC-MFIcompliance.

Staff motivation and incentives: Motivation of the MFI loans officersneeds to be sustained amidst thedaily rigorous routine. At times wedo find a mismatch, between whatmanagement opines and perceptionsamongst staff. This is particularlytruewhen thechange requirement isbroughttop-down.Hence,thecurrentprojectshouldprovideaguidelineonexpected gestation period of eachphase. The need to include sociallyexcludedmustberootedamongsttheteamandthenmovetoimplementationphase. Second, MFIs may considerstructuringincentivearound“inclusionof excluded” concept, the definitionof this being beyond income andun-banked. PwD being a universalcategory, socio-religious, ethnic and/or physical exclusion, the definitionwould differ from MFI to MFI anddepend on urban-rural operationsor region. Structuring incentivesincluding exclusion parameter,with acertainweightage allocation, may beconsideredbyMFIs.


Universal inclusion: At an industrylevel it must be accepted that

while the microfinance industry hasaimed and addressed issues relatedto exclusion, financial inclusion ofPwD has not been a focus and thatinclusionofPwDaspartofmainstreammicrofinance activity has happenedlargely by default. MFIN, as an SROalong with other stakeholder canplayakeyrole inaddressingthisgap.The initiative at MFI level has to bevoluntaryand it issuggestedthatthelearnings fromtheprojecthave tobedisseminated widely. Such initiativesmayinclude–countrywideawarenessworkshops, specific training forrefinement of processes, workshopsforaccessaudit and soon.MFIN,Sa-Dhan,ACCESS-ASSIST,ACCIONalongwith knowledge expert v-shesh andthepartnerMFIscouldplanforayear-long activity that covers the variousregions of the Country. However, it issuggestedthatanysuchdisseminationshould ideallycommenceoncetheallcurrent material, tools, manuals, casestudy developed as part the projectis complete and validated by CFI(Accion).

Industry baseline and demand estima-tion: Ashighlightedinthiscasestudy,baselinedocumentation,bothintermsofoutreachandsocio-economicprofil-ingofPwDisrequired.Outreachbase-lineisafairlysimpleexercise,ifallMFIs(at least NBFC-MFIs) voluntarily de-cidetoinclude‘disability’asacatego-

rywhilecapturingclientdataandthisdata isrecorded intheMIS.Demandestimationandsocio-economicprofil-ingwould require indepth studies. ItishighlyrecommendedthatCFIalongwith partner MFIs plan this activityin theupcomingmonthsas thispilotstudy resultswould provide leadsonchallengesinconductingsuchanexer-cise.Arelatedpointistheengagementof DPIs. This is important both in term ofengagementwithDPIsforlearningaboutpersonswithdisabilityandtheirpossible collaborative engagementwithMFIs for estimationof PwDandsocio-economic profiling. The threepartner MFIs have expressed needtoengagewithDPIsandthiscouldagoodbeginning.

Education and skilling PwD: We recognize that social, physical andinformation barriers for PwD to access financial services must melt downas well. Besides information flow ordocumentation gaps discussed aspart of loan or financial transactionprocesses, thesemay be also due tolow education levels and low skillsto engage in productive activity orseek employment. Education, skillingfor entrepreneurship or employmentwouldrequireconsiderableinvestmentboth in terms of resources andpatience.ThethreepartnerMFIsunderthe project have similar thoughts orplan.This isagoodbeginning,butasanation-wideexerciseitwouldrequiresubstantialcapacityintermsofhuman

6 POLICY AND OTHER RECOMMENDATIONS FOR FINANCIAL INCLUSION OF PwD


and capital resource. Accion as partof thismission,may initiateaparallelprojectfor identificationofeducationandskillinghubsat leastat thestatelevel or facilitate setting-up suchhubs atDPIs,whowould then act asresourcecenter forPwDs,MFIclients(asPwD)andMFIswhowishtoinvestin education and skill developmentactivity for PwDs. Other leadingdevelopment and developmentfinance institutions too may beinterestedinincubatingsuchresourcecenters.Suchopportunitiescouldbeproactivelyexplored.

Product innovation: The case studyandtheinitiallessonsclearlyputforththe eagerness of MFIs to work withtheexcluded.Takingthecuefromthethree partner MFIs, such initiativeshighlight the social focus and social-businessbalanceofMFIs.Itmustalsobe factored in that for MFIs it is atightropewalk,balancingcompliancestipulations, investor / lender expec-tationsandengage inprocesses thatwouldrequirelongtermimpactwork.Substantial changes with respect tocompliance by NBFC-MFIs were putinplacewiththefirstsetofguidelinesbroughtoutbyRBIinDecember2011.Product innovation is a key aspectand that needsof poor,marginalizedincludeeducation,housing,waterandsanitation,meeting consumption gapandsoon.Hence,thereismosturgentrequirement to un-tag microfinanceloanenduseandloansizestipulationto a certain extent. Besides, businessinvestment,MFIscanthuslendtoim-provecapacities,skillsandalsotoim-provelivingconditionsfortheirclientswhohavelowornoaccesstoeduca-tion,trainingforemployability,toilets,water connection and soon and thisbeingidentifiedasbarriersparticularlyfor the PwD.

While this paper underscores theproject lessons for replication acrossMFIs, there are certain risks andchallenges that the MFIs and allstakeholdersneedtoaddress.

MFI lending to PwD and theviabilityofreplicationthroughthedominant group lendingmodel islargely untested. It would requirea number of rounds of validationacrossMFIsandregionstoconfirm.MFIsextendingsavings,remittanceservices to PwD again is a novelaspect, coupledwith requirementfor appropriate technologyintervention and this could bechallenging.MFIsmayalsoneedtoprovidedoorstepservice.Whileallthisisnotimpossible,itmayneedMFIs to move out of the comfort zoneofanestablishedmodel.

To access full suite of financialservices, PwD need to beempowered through education,skillsandfinancialliteracy.Thecaseofprovidingnonfinancialservicesiswhoserole-MFI,CBOs,DPIs,DFI,public sector/government, privatepartnership? The paper arguesfortheneedtobuildcapacitiesofPwDandtobeginwithsucheffortsmay be hybrid in nature, until acommon way forward is agreedupon.MFIswouldcontinuetolend,but matter of level playing fieldforPwDwillbeahugechallenge.Yet there areopportunities, theseshouldreachPwDandmanygoodeffortsmustcontinue.

Workingwith PwD, as with otherMFI clients, there will be successand failure stories. MFIs have setrules for operations andmandateto work as per RBI fair practicescompliance guidelines. Failuresmay draw public attention andinvitepoliticalrisks.Thequestioniswhethersuchfailureswillbeseenwithadifferentlensandviewedatadifferenttolerancelevel.CanMFIsafford this? The MFI industry inthepasttwodecadeshasseenthehighsandthelowsandwithcertainvery positive macro level policychanges (differentiated bankingmodels,BCopportunity), itwouldliketoreachthezenithofproviding


banking services.Would this limitMFI view of financial inclusionto providing a suite of financialservices, rather than a moreelaboratedefinitionoftargetclientthat included various excludedpersons?Hence,MFIparticipationin the financial inclusion modelcannotbeassumed.

Toconclude, theauthor recommendsre-visitingthelessonsandrecommen-dationsenumeratedinthiscasestudyonce the project handover phase iscompleteandhopes that the lessons

andwayforwarddiscussedaspartofthe current documentation assist incarrying forward the agenda of trueand full financial inclusion and facili-tateadialoguetobringaboutenablingpolicy and operational level changesforfinancialinclusion.

Acknowledgement: The author would like to acknowledge valued contribution by Mr Dibyajyoti Pattanaik (Annapurna), Mr John Alex (Equitas). Mr Roy Alex (ESAF) and Mr P Rajasekharan (v-shesh).

REFERENCES

Maarse Anneke, “From financialexclusion to formal inclusion:

empirical evidence from theMicrofinanceandDisabilityProject inUganda”,February2014

“CensusofIndia2001”,GovernmentofIndia

“Censusofindia2011”,GovernmentofIndia

http://socialjustice.nic.in

Josh Goldstein, “A New FinancialAccess Frontier – People withDisabilities, Center for FinancialInclusionatAccionInternational,June2010

“Making Microfinance Accessible toPersons with Disabilities: Awarenessand Attitudes Among IndianMicrofinance Institutions”, Center forFinancialInclusion,Accion

“Microfinance Accessability ProjectDocument”,v-sheshLearningServicesPrivateLimited(v-shesh),April2013

RaghuramG.Rajan,“AHundredSmallSteps - Report of the Committee on FinancialSectorReforms”,2009

Rajasekharan P., “Disability inclusiveMicrofinance models (Indianexperience),presentedattheInclusiveMicrofinance Conference 2014,Kampala,September2014

Rajasekharan P., “Blindness shouldn’tbe a barrier to banking: endingdiscrimination in India”, GuardianProfessional,9October2014

Rangarajan C, “Report of theCommittee on Financial Inclusion”,2008

Financial Inclusion of Excluded Segments

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