View
1
Download
0
Category
Preview:
Citation preview
Uttar Pradesh State Report
Page 1 of 38
Uttar Pradesh State Report
On
Conducting an Assessment Study of design and
delivery of Financial Literacy among poor
Submitted to
by
BASICS Ltd., Ascent Tower, Opp. Karvy Consultancy,
Banjara Hills, Road No-10, Hyderabad 500 034,
Andhra Pradesh, India
June, 2010
BASIX
Equity for Equity
Uttar Pradesh State Report
Page 2 of 38
Table of Contents
1.0 State Profile ......................................................................................................................................... 4
Area-wise Branch Network (All Banks) ........................................................................................... 5
Deposits/Advances/CD Ratio (All Banks) ....................................................................................... 5
Financial Inclusion .................................................................................................................................... 5
2.0 Primary Survey ........................................................................................................................................ 7
2.1 Respondents Profile: ................................................................................................................... 8
2.2 Details of FL Programme ........................................................................................................... 8
3.0 Tools used ............................................................................................................................................ 9
4.0 Duration of Programme ................................................................................................................. 9
5.0 Participant’s satisfaction and urge for repetition .............................................................. 10
6.0 General Behaviour-Pattern ......................................................................................................... 11
7.0 Saving .................................................................................................................................................. 13
7.1 Saving Products ........................................................................................................................... 14
7.2 Awareness level on Institutions ............................................................................................ 14
7.3 Content covered in FLP ............................................................................................................ 15
7.4 Content Covered on Saving in FLP ....................................................................................... 15
7.5 Impact ............................................................................................................................................. 16
8.0 Credit ................................................................................................................................................... 17
8.1 Awareness on Interest Rate of different Institutions ................................................... 18
8.2 Awareness on procedure and documentation ................................................................ 18
8.3 Impact ............................................................................................................................................. 18
9.0 Insurance ............................................................................................................................................ 19
9.1 Insurance Products .................................................................................................................... 19
10.0 Post FLP empowerment of Female participants ............................................................ 19
10.1 Topics suggested for improved training ....................................................................... 20
11.0 Summary ............................................................................................................................................ 21
12.0 Study Area .......................................................................................................................................... 21
13.0 Formal programmes .................................................................................................................. 22
13.1 Financial Literacy for Poor Women ................................................................................ 22
13.2 NABARD Financial Literacy Programme ....................................................................... 24
14.0 Informal programmes ................................................................................................................... 26
Summary and Way Forward .................................................................................................................... 27
Summary ..................................................................................................................................................... 27
SWOT for FL Programme ..................................................................................................................... 28
Future Strategies ..................................................................................................................................... 29
General recommendations .................................................................................................................. 29
Annexure I: Profile of Respondents ................................................................................................ 31
Annexure II: Tools used in the Financial Literacy Programmes ........................................... 32
Annexure III: Participants responses on a repeat FLP ........................................................... 33
Annexure IV: Responses on Satisfaction level ........................................................................... 34
Annexure V: Awareness about financial institutions ................................................................ 35
Annexure VI: Responses on awareness about Interest Rates ..................................................... 36
Annexure VII: Awareness on Insurance Products ........................................................................... 37
Annexure VIII: Responses on improvement in decision making status ................................. 38
Uttar Pradesh State Report
Page 3 of 38
List of Tables Table 1: Demographic, Socio-economic and Health profile of Uttar Pradesh State as compared to India figures ........................................................................................................................... 4 Table 2: Bank branch network in Uttar Pradesh ............................................................................... 5 Table 3: Number of SHGs provided with bank loans ....................................................................... 6 Table 4: Financial Literacy Programmes conducted ........................................................................ 8 Table 5: Opinion on Duration .................................................................................................................. 10 Table 6: Duration Suggested for FLP .................................................................................................... 10 Table 7: Behavioural trend in deficit management ........................................................................ 11 Table 8: Trend on Surplus Utilization .................................................................................................. 12 Table 9: Track of Income & Expenditure ............................................................................................ 13 Table 10: Saving Pattern ........................................................................................................................... 14 Table 11: Type of Institutes: .................................................................................................................... 15 Table 12: Purpose of Saving ..................................................................................................................... 15 Table 13: Impact of FLP-Saving .............................................................................................................. 16 Table 14: Different Loan product covered in FLP ........................................................................... 18 Table 15: Empowered after FLP ............................................................................................................. 19 Table 16: Topics suggested to be covered in FLP ............................................................................ 20 Table 17: Area-wise FL programmes and resource agencies ..................................................... 21 Table 18: Teaching aids in formal FL programme by ISMW ....................................................... 23
Uttar Pradesh State Report
Page 4 of 38
State Report: Uttar Pradesh
1.0 State Profile
The state of Uttar Pradesh (UP) has a population of 166.20 million. The decadal growth rate
of the state population is 37.80% as against 21.54% for the country and the population of the
state continues to grow at a much faster rate than the national rate. The Total Fertility Rate of
the State is 3.8. The Infant Mortality Rate is 67 and Maternal Mortality Ratio is 440 (SRS
2004-2006) which are higher than the National average. The Sex Ratio in the State is 898 (as
compared to 933 for the country). Comparative figures of major health and demographic
indicators are as follows:
Table 1: Demographic, Socio-economic and Health profile of Uttar Pradesh State as compared to India
figures1
S. No. Item Uttar Pradesh India
1 Total population (Census 2001) (in million) 166.20 1028.61
2 Decadal Growth (Census 2001) (%) 37.80 21.54
3 Crude Birth Rate (SRS 2008) 29.1 22.8
4 Crude Death Rate (SRS 2008) 8.4 7.4
5 Total Fertility Rate (SRS 2008) 3.8 2.6
6 Infant Mortality Rate (SRS 2008) 67 53
7 Maternal Mortality Ratio (SRS 2004 - 2006) 440 254
8 Sex Ratio (Census 2001) 898 933
9 Population below Poverty line (%) 31.15 26.10
10 Schedule Caste population (in million) 35.15 166.64
11 Schedule Tribe population (in million) 0.11 84.33
12 Female Literacy Rate (Census 2001) (%) 42.2 53.7
Covering an area of 240,928 square kms, UP is one of the largest states of India.
Administratively divided into 71 districts and 820 blocks, the state has 107,452 villages.
Ranking first in the country in terms of population, the state is densely populated. As
against the national average of 324 persons/sq. km., the state has a population density of
689 persons/sq. km. The other elements of the state demographic profile include its
predominantly rural character, high level of poverty and low percentage of working
population. About 80% of the population lives in rural areas and more than 30% of the
population still lives below poverty line2.
The state economy is predominantly agrarian and more than 70% of the work force is
engaged in agriculture and allied activities. The importance of agriculture in the state
economy can be gauged from the fact that share of agriculture in State Domestic Product is
35% as against its 22% share in the National GDP.
The State has a wide network of banks. It is being served by 39 Commercial Banks, 12
Regional Rural Banks (RRBs) and 2 Cooperative Banks. Out of total 9,632 branches of all
1 http://mohfw.nic.in/NRHM/State%20Files/up.htm (as extracted on 5th June 2010)
2 http://www.slbcup.com/pages/bankatglance.html (as extracted on 5th June 2010)
Uttar Pradesh State Report
Page 5 of 38
Scheduled Commercial Banks (including RRBs) operating in the state, 4,972 branches are
operating in the rural areas and 1,715 in semi-urban areas.
In addition to this, 1,658 branches of District/Central Cooperative and Land Development
Banks are also serving in the state. Apart from this, 70 Urban Cooperative Banks are also
functioning through their 184 branches in the state.
Area-wise Branch Network (All Banks) Table 2: Bank branch network in Uttar Pradesh
Category March 07 March 08 March 09
Rural 6,049 6,098 6,210
Semi-Urban 1,828 1,946 2,078
Urban / Metro 2,460 2,720 3,002
Total 10,337 10,764 11,290
There were 36 RRBs in the state but now after amalgamation process the number has
reduced to 12. These RRBs are sponsored by 10 banks and catering to the needs of people
of 71 districts through their 2,961 branches.
Deposits/Advances/CD Ratio (All Banks)
Total deposits with the banking sector in the state increased by 21.56% in 2008-09 over
2007-08. At the end of March 2009, the total deposits stood at Rs.2, 72, 736.94 crore.
Commercial Banks which have the maximum share (86.46%) in total deposits registered a
growth of 21.90%. Deposits of RRBs and Cooperative Banks registered a growth of 18.60%
and 21.31% respectively over the level as at March 2008.
Similarly, during the same period, the total advances with the banking sector increased by
13.51%. At the end of March 2009, the total outstanding advances stood at Rs.1,27,639.76
crore. The growth registered by Commercial Banks was 14.44%, while outstanding loans of
RRBs registered a growth of 18.58%. Cooperative Banks have registered a negative growth
of 2.45% compared to their levels at March 2008. The share of Commercial Banks in total
advances was 83.97% whereas the share of RRBs and Cooperative Banks was 9.57% and
6.45% respectively.
The CD Ratio of the State has witnessed a quantum jump at the end of 2007, however it has
slide down in March 2009.
Financial Inclusion
As against the total population of 166 million, the adult population is 82.23 million and the
total number of bank accounts is 47.13 million. The total number of accounts includes 45.80
Uttar Pradesh State Report
Page 6 of 38
million savings accounts. This suggests financial inclusion of 55.7% adult population. The
number of accounts per 100 of population is 28 and per hundred of adult population is 57 as
against the national average of 31 and 59 respectively3.
SHGs provided with bank loans over the years are as under4:
Table 3: Number of SHGs provided with bank loans
S. No. Year No. of SHG’s
1. 2003-04 25,214
2. 2004-05 40,438
3. 2005-06 42,263
4. 2007-08 23,094
5. 2008-09 40,476
3 Indian Institute of Banking and Finance (2006)
4 www.indiastat.com
Uttar Pradesh State Report
Page 7 of 38
Part I
Primary Survey under the FL Study in Uttar Pradesh
2.0 Primary Survey
The demographic summery of the sample under the primary survey of Financial Literacy
Programmes (FLPs) in use is presented hereunder.
Profile of Respondents
33%
67%
6%
94%
38%
2%
31% 29%
9%4% 1%
Category
Perc
en
tag
e
Male Female Age > 60 Age < 60 BC ST
SC General Minority PWD PWHA
Profile Repondents
64%
36%
25% 22%
Category
Perc
en
tag
e
Income<=40,000pa Income>40,000pa
Male - Head of Family Female Head of Family
Uttar Pradesh State Report
Page 8 of 38
2.1 Respondents Profile:
The total respondents surveyed were 1,040 surveyed from 9 districts of Uttar Pradesh namely
Jaunpur, Mirzapur, Agra, Baharaich, Jhansi, Meerut, Rae Barely, Varnasi and Lucknow. The
sample primarily consists of women 653 (64%).
The respondents were mainly from Backward Class (38%), followed by Scheduled Caste
(31%), General (30%) and Scheduled Tribe (2%). In the total sample, about 9% belonged to
the minority group, who were Muslims. Accordingly the sample represents people from
various categories and classes of the society. Details of the respondents of profile are
presented under Annexure 1.
2.2 Details of FL Programme
The total respondents covered were 1,059 out of which 624 (59%) participated in formal
FLP, 416 (39%) participated in informal FLP whereas 19 (2%) did not participate in any
programme. The formal FLPs conducted include programs conducted by Mahila Prabodhini
Foundation under the UNDP-ISMW program, FLCC by Bank of Baroda, FLCC cum SHG by
Rajeev Gandhi Trust and Union Bank of India FLCC, Bal Chetana Trust, Development
Association for Human Advancement, Panchasheel Development Trust , Bird Development
Trust and Jan Kalyan Samastha under UNDP-NABARD initiative, Development Alternatives
under NABARD program including leading MFIs like NEED and Cashpor. Further details
are as under:
Table 4: Financial Literacy Programmes conducted
Type of
Programme
Programme
Name
Support
Agency
Facilitating
Agency
Area
Covered
Total
respondent
covered
Formal
Financial
Literacy for
poor women
UNDP ISMW Jaunpur,
Mirzapur
624 UNDP-
NABARD
Financial
Literacy
UNDP NABARD
Agra,
Baharaich
Meerut,
Jhansi
Informal
Financial
Literacy credit
counselling
Bank of
Baroda
Bank of
Baroda Rae Barely
416
Financial
Literacy CASPHOR Varanasi
Financial
Literacy NEED Lucknow
Financial
Literacy credit
counselling
Disha
Not given
permission
. Over
phone
Further detail of the above mentioned programmes are contained in Part II of the report.
Uttar Pradesh State Report
Page 9 of 38
3.0 Tools used
Overall, lectures (22%) are found to be the most useful tool followed by posters (15%) and
video (14%) in imparting training to participants. Among the females the highest responses as
useful are for lectures (23%) and next is posters (16%) whereas among males highest is again
lectures (21%) and street play is next (18%). Lectures reported highest responses as useful
from minority (33%), PWD (28%) and all social categories as well. The tools used in
informal training are few in number when compared to formal training. But, during field
interaction, video was found to be more effective than lecture. Puppet show and quizzes were
also very useful by the participants. Games seemed to tough for participants as it was
difficult for them to understand.
As regards to the informal programme, it is mostly lecture (44%) followed by posters (18%)
and video (11%). The highest responses for lectures are from minority (79%), next from
PWD (65%) and then females (53%). The aged preferred, next to lectures (25%), video
(20%) and posters (16%).
Whereas in formal training it is lecture (16%), posters (18%), street play (15%) and video
(15%) are reported as most useful tools. Of these, lecture and audio-visual are the most
preferred aids by the participants. With highest responses reported of 20% for lectures, under
formal FLP, as against the formal FLP, the responses are not skewed towards any one tool
(lectures 44% with highest 79% from minority under informal) but several tools were
reported almost equal usefulness such as lectures (16%), video (15%), street play (15%),
posters (15%) and stories (11%).
To sum up, the formal programmes could successfully use multiple tools like lectures, video,
street plays, posters and stories as compared to informal programmes where lectures were the
most used methods and other tools were reported to be less used. Cross analyzing with field
data, the methods only used a traditional lecture method which was mostly recalled by the
participants. But in terms of effectiveness, the video and puppet shows had made more
impact.
A detailed list of tools used and respondent responses on usefulness is attached in Annexure
II
4.0 Duration of Programme
Overall, 50% of the respondents reported that the training programme with a duration of three
days or less as too short. 52% of respondents from the formal training and 45% from the
informal training reported that the training period was too short. However it may be noted
here that some of the programmes are conducted in multiple sessions where each session is
less than three days duration.
The overall suggestion from the respondents was to have the training programme for at least
3-7 days, but with multiple sessions, the reason was participants were not able to understand
as well as remember all topics at one time. Most of the respondents, both in formal and
informal training programmes (49%) suggested that the training programme should be
between 3 to 7 days.
Uttar Pradesh State Report
Page 10 of 38
The feedback from many program participants usually brings out the duration was too short
and longer duration is suggested. However, considering the other activities of the
participants, and also with the fact that some of the programmes are conducted in multiple
sessions over a period wherein each session is of less than three days duration, this will be the
preferred duration with the assumption of multiple sessions. The approach of multiple
sessions also helps in recollecting the contents taught, absorption and possible practice of the
teachings over a period.
Table 5: Opinion on Duration
Type of
Training
Grand
Total
Too
Short
Adequate Lengthy Do not
know
Informal 416 26% 54% 5% 15%
Formal 624 43% 49% 3% 5%
1040 37% 51% 4% 9%
Table 6: Duration Suggested for FLP
Formal/
Informal
Total
Participants
<3
days >3-7 days >7-14 days >14-30 days >30days
Informal 416 19% 47% 8% 6% 21%
Formal 624 21% 50% 9% 2% 17%
Total 1040 20% 49% 9% 3% 19%
5.0 Participant’s satisfaction and urge for repetition
The analysis of the participant‘s satisfaction level across all categories is very encouraging
which reported as found satisfactory (62%) and urged for repetition (93%) of programme. In
field, team found that BPL category participants are very satisfied with FLP and particularly
programme reached very interior areas like Bichaai at Baharachi. It was one of the successful
parameter for programme. Even though, it was tough to understand all topics at a time, the
field team felt that Jaunpur District participants understood the program better than
participants in any other district.
The number of respondents wanting to participate in a repeat FLP is very high in both formal
and informal training programmes across all categories. About 97% of the aged, 98% of
formal and 93% informal participants showed interest for repeat program. The same figures
for general category was 96%, for ST and minority it was reported to be 95% be it formal or
informal. The reasons behind it was, as of now, ST community has lack of exposure due to
being left over from all development programmes. So, first time, it was very tough to educate
at one time. The details on responses for repeat FLP and satisfaction level on FLP
participation are presented in the Table vide Annexure III and IV respectively.
The participants‘ desire to participate in a repeat FLP is very encouraging but to ensure the
success of such programmes and to ensure that the same ultimately leads to Financial
Inclusion, the program needs an inbuilt mechanism to intensively work with the participants
Uttar Pradesh State Report
Page 11 of 38
after the conduct of the program and also to monitor the repeat programs so as to ensure there
is an element of recall and new learnings are imparted.
6.0 General Behaviour-Pattern
This section describes respondent‘s behaviour with reference to deficit, utilisation of surplus,
tracking of income and expenditure as well as planning and preparation of budget.
As is evident from the data, there is a clear distinction between the respondents falling Above
and Below Poverty Line. The BPL households mostly cut down their expenses (26%) as the
first step in times of deficit. Next preference is to borrow money from friends (22%) and
SHGs (20%).
Interestingly, the above Poverty Line households mostly use their savings to meet deficit
(27%). However, participants also borrow from friends (19%) or cut down their expenses
(18%) as the next step. Field team found that Jaunpur people had understood well about
budget management and managing expenses better as well as planned way after the program.
Overall, not many APL and BPL households reported approaching financial institutions (8%)
during deficit as seen in the table below. The response to borrow money from banks is very
poor and it was 5% only. Interactions with these households at field revealed that the FLP
among the low income group had contributed to educate them on cutting down on
unnecessary expenses. The investigators also observed that the saving behaviour of the
respondents of the formal programme had been changed after the training programme.
A detailed behaviour pattern on deficit management by different category of community is
shown in Table No 7.
Table 7: Behavioural trend in deficit management
Items Above
Poverty
Below
Poverty
No
Response
Grand
Total
BC
Cut Down Expenses 17% 32% 0% 27%
Withdraw from Savings 34% 10% 0% 18%
Borrow from Friends 18% 19% 100% 19%
Borrow from Money
Lenders
10% 16% 0% 14%
Loan from SHG 16% 18% 0% 18%
Loan from Bank 5% 4% 0% 4%
Total 100% 100% 100% 100%
SC
Cut Down Expenses 22% 23% - 23%
Withdraw from Savings 26% 13% - 15%
Borrow from Friends 23% 26% - 26%
Borrow from Money
Lenders
10% 14% - 14%
Loan from SHG 14% 21% - 20%
Loan from Bank 4% 3% - 3%
Total 100% 100% - 100%
ST
Cut Down Expenses 22% 5% - 10%
Withdraw from Savings 22% 25% - 24%
Uttar Pradesh State Report
Page 12 of 38
Items Above
Poverty
Below
Poverty
No
Response
Grand
Total
Borrow from Friends 11% 15% - 14%
Borrow from Money
Lenders
22% 25% - 24%
Loan from SHG 11% 30% - 24%
Loan from Bank 11% 0% - 3%
Total 100% 100% - 100%
General
Cut Down Expenses 17% 23% 17% 19%
Withdraw from Savings 23% 11% 17% 19%
Borrow from Friends 19% 20% 17% 19%
Borrow from Money
Lenders
9% 15% 17% 11%
Loan from SHG 10% 22% 17% 15%
Loan from Bank 21% 10% 17% 17%
Total 100% 100% 100% 100%
Total
Cut Down Expenses 18% 26% 14% 23%
Withdraw from Savings 27% 12% 14% 17%
Borrow from Friends 19% 22% 29% 21%
Borrow from Money
Lenders
10% 15% 14% 13%
Loan from SHG 13% 20% 14% 17%
Loan from Bank 14% 5% 14% 8%
Total 100% 100% 100% 100%
Analysis of surplus utilisation shows that the respondents across all categories have
inclination towards savings for future with whatever surplus they have got wherein the
responses vary from 86%to 40%. The highest response was from ST-BPL with 86% and next
highest was from general-BPL with 79%. The lowest responses to save for future were from
ST-APL with 40% and SC-BPL with 58%.
The participants‘ preference to save for future and the reported preference of APL to tap the
savings in case of emergency also points to initiate steps to encourage and enable savings.
This when combined with the desire to participate in repeat FLPs signals that the FLPs are
driving the participants towards financial inclusion.
Table 8: Trend on Surplus Utilization
Data Above Poverty Below Poverty No Response Grand Total
BC
Spend it 15% 15% 0% 15%
Buying assets 6% 1% 0% 3%
Invest in enterprise 11% 10% 0% 10%
Save for future 63% 64% 0% 64%
Do not know 5% 10% 100% 9%
Total 100% 100% 100% 100%
SC
Spend it 12% 20% 19%
Buying assets 3% 1% 1%
Invest in enterprise 11% 11% 11%
Save for future 64% 58% 59%
Do not know 10% 10% 10%
Total 100% 100% 100%
Uttar Pradesh State Report
Page 13 of 38
Data Above Poverty Below Poverty No Response Grand Total
ST
Spend it 20% 14% 16%
Buying assets 0% 0% 0%
Invest in enterprise 40% 0% 11%
Save for future 40% 86% 74%
Do not know 20% 14% 16%
Total 100% 100% 100%
General
Spend it 15% 9% 0% 12%
Buying assets 3% 2% 20% 3%
Invest in enterprise 14% 4% 0% 11%
Save for future 65% 79% 80% 69%
Do not know 4% 6% 0% 5%
Total 100% 100% 100% 100%
Total
Spend it 15% 16% 0% 15%
Buying assets 4% 1% 17% 2%
Invest in enterprise 13% 9% 0% 11%
Save for future 64% 64% 67% 64%
Do not know 5% 10% 17% 8%
Grand Total 100% 100% 100% 100%
As regards keeping note of income and expenditure, very few participants responded
maintaining written records. However, it was observed from all FLPs that the SC group had
the least tendency/practice to maintain records in comparison to others. Field team observed
that participants are practicing by reducing the cost.
Table 9: Track of Income & Expenditure
Category No Record Broad Idea (No Records) Keep Records No Response Grand Total
BC 23% 74% 2% 0% 100%
SC 12% 82% 2% 4% 100%
ST 21% 69% 3% 7% 100%
General 20% 80% 0% 0% 100%
Total 19% 77% 2% 2% 100%
7.0 Saving
This section provides an overview of the financial products and related institutional
awareness among the respondents. After knowing the utilisation of surplus which shows
community inclination for saving, the survey tried to find out the pattern of saving. The
finding shows that respondents have got the habit of saving irrespective of the fact that it is
leftover surplus or purposeful saving. The BPL respondents reported to save the leftover after
(67%), while the APL respondents reported to save purposefully (53%). Incidentally, around
11% of BPL respondents reported as not able to save.
ST among BPL and APL reported 67% and 60% respectively to save leftover. The general
category under BPL (67%) reported to save only leftover while it was 58% for SC-APL, 53%
for BC-BPL. Respondents who saved purposefully were mostly from the APL category and
their figures were more than those of BPL category
Uttar Pradesh State Report
Page 14 of 38
Table 10: Saving Pattern
Category Saving pattern Above Poverty Below Poverty No Response Grand Total
BC
Save Purposefully 53% 34% 0% 40%
Save Leftover 42% 53% 50% 50%
Not able to save 6% 12% 0% 10%
No habit to save 0% 0% 50% 1%
Total 100% 100% 100% 100%
SC
Save Purposefully 58% 41% 44%
Save Leftover 38% 49% 47%
Not able to save 2% 10% 9%
No habit to save 2% 0% 0%
Total 100% 100% 100%
ST
Save Purposefully 40% 27% 30%
Save Leftover 60% 67% 65%
Not able to save 0% 7% 5%
No habit to save 0% 0% 0%
Total 100% 100% 100%
General
Save Purposefully 53% 22% 25% 41%
Save Leftover 45% 67% 50% 53%
Not able to save 2% 11% 25% 6%
No habit to save 0% 0% 0% 0%
Total 100% 100% 100% 100%
Total
Save Purposefully 53% 22% 25% 41%
Save Leftover 45% 67% 50% 53%
Not able to save 2% 11% 25% 6%
No habit to save 0% 0% 0% 0%
Total 100% 100% 100% 100%
7.1 Saving Products
This section presents the reported awareness among respondents with regard to saving
products across different categories. It was found that knowledge of savings account was well
known across all participants. The awareness level of other products was found to be lower.
For fixed deposit it was 35%,, for recurring deposit it was (28%) and for no frill account, it
was 34%. The awareness level among the respondents of formal training programme was
found to be better than that of the informal training programme. Awareness under formal and
informal programs about savings is 76% and 64%; Fixed Deposit 34% and 37%, Recurring
Deposit 29% and 26%, No Frills Account 45% and 17% respectively.
7.2 Awareness level on Institutions
Overall, it was found that the Bank (52%) and SHGs (35%) were reported as the familiar
institutions for saving. However, respondents‘ awareness of interest rate of SHG was higher
when compared to the Banks. Respondents who reported that they are not aware about
companies (62%), PACS (75%) and Chit Fund (89%) as saving institutions were high. Again,
Uttar Pradesh State Report
Page 15 of 38
the formal programmes were found to be more effective than the informal ones. Among all
social categories majority of responses from formal programs reflect awareness about banks
and their interest rate compared to informal program participants. Even among the
participants of SHG programmes, the awareness levels about banks are high. The details on
the responses on awareness about institutions and their interest rates are presented vide
Annexure V and Annexure VI respectively.
7.3 Content covered in FLP
Overall, the content of both the formal and informal programmes consist of the basic
principles like money management, management of cash flow, dealing with life cycle events,
financial decision making process and planning for future. The content of the formal
programme was found to be better structured and covered the overall financial education;
whereas the informal programmes mainly focused on organisational or sponsor‘s objectives.
7.4 Content Covered on Saving in FLP
Overall, the content covered in both the formal and informal training programmes with regard
to saving involve purpose of saving, operational and documentation procedure of Savings
Account and institutional details for saving. Again, the impact of the formal training
programme was found to be better than the informal ones. Overall, 65% respondents were
able to recall Grameen Bank and 46% of them recalled SHGs. Sixty-eight percent
participants from the formal programmes were able to recall the importance of saving for
future emergencies.
Table 11: Type of Institutes:
Institutions Informal Formal %
Grameen Bank 25% 68% 51%
Commercial Bank 10% 19% 15%
Cooperative 4% 12% 9%
Company 5% 19% 13%
Chit Fund 1% 2% 1%
MFI 57% 11% 29%
SHG/JLG 37% 62% 52%
Post Office 14% 36% 27%
Insurance Company 18% 46% 35%
Total Participants 416 624 1040
Table 12: Purpose of Saving
Topics Informal Formal Grand Total
To meet additional expenses 34% 50% 44%
To repay debts 15% 33% 26%
To purchase assets 11% 17% 15%
For children‘s future and education 39% 66% 55%
For future emergencies 51% 68% 61%
To invest 33% 34% 33%
To get interest income 8% 18% 14%
Uttar Pradesh State Report
Page 16 of 38
To have a secured future 13% 35% 26%
Others 4% 3% 4%
Didn‘t teach anything 8% 2% 4%
Total Participants 416 624 1040
It is found that participant‘s awareness and knowledge about interest rate was found to be
much higher with reference to formal programmes than those who had undergone informal
programmes for most types of institutions. The reason behind this was, formal programmes
covered about all institutions informal ones only dealt with their immediate objectives of
creating awareness about their services.
7.5 Impact
The survey found both the formal and informal FLPs impacting the respondents across all
categories with regard to financial inclusion. The respondents have started saving in financial
institutions like the Bank (20%), SHG (35%) and Post Office (28%) after attending the
informal FLP whereas the same with reference to formal FLP are Banks (38%) and SHG
(39%). Overall, there is significant impact from these training programmes (both formal and
informal).
Through investigators observation as well as respondents interaction, it was clearly
understood that formal programme respondent‘s savings behaviour had changed. In the field,
ISMW programme is facilitating to open a No Frill Accounts. In Jaunpur, it was huge
success. In Mirzapur and Sant Ravidas, it was failure, due to external causes.
Table 13: Impact of FLP-Saving
Informal Formal
Institution Category No Yes Already
saving
earlier
No Yes Already
saving
earlier
Bank BC 56% 38% 7% 57% 28% 15%
SC 58% 28% 14% 41% 45% 14%
ST 50% 50% 0% 15% 85% 0%
General 51% 35% 14% 26% 43% 30%
Female 60% 38% 2% 49% 47% 4%
Male 36% 22% 43% 30% 29% 40%
Minority 65% 34% 2% 52% 39% 10%
Others 53% 35% 12% 41% 40% 19%
SHG/JLG/CIG BC 58% 30% 13% 62% 30% 8%
SC 60% 24% 16% 45% 49% 6%
ST 50% 33% 17% 46% 31% 23%
General 47% 42% 11% 72% 23% 5%
Female 51% 34% 15% 42% 49% 9%
Male 69% 25% 6% 81% 16% 3%
Minority 51% 42% 8% 74% 16% 10%
Others 55% 31% 14% 57% 36% 7%
Post Office BC 94% 4% 2% 96% 4% 0%
SC 98% 1% 1% 90% 2%
8%
Uttar Pradesh State Report
Page 17 of 38
Informal Formal
Institution Category No Yes Already
saving
earlier
No Yes Already
saving
earlier
ST 83% 17% 0% 100% 0% 0%
General 89% 7% 4% 91% 6% 3%
Female 95% 3% 2% 92% 7% 1%
Male 85% 9% 6% 93% 5% 2%
Minority 97% 3% 0% 100% 0% 0%
Others 92% 5% 3% 92% 6% 2%
Companies BC 92% 6% 3% 95% 4% 1%
SC 94% 6% 0% 92% 8% 0%
ST 83% 17% 0% 77% 15% 8%
General 90% 6% 4% 87% 8% 5%
Female 93% 6% 2% 92% 7% 1%
Male 87% 7% 6% 89% 7% 4%
Minority 95% 5% 0% 84% 10% 6%
Others 91% 6% 3% 92% 7% 2%
PACS (Cooperatives) BC 97% 3% 0% 98% 2% 0%
SC 99% 1% 0% 97% 3% 0%
ST 100% 0% 0% 100% 0% 0%
General 96% 3% 1% 95% 3% 2%
Female 98% 1% 0% 98% 2% 0%
Male 92% 7% 1% 96% 3% 1%
Minority 100% 0% 0% 100% 0% 0%
Others 97% 3% 1% 97% 3% 1%
Chit Funds BC 99% 1% 0% 100% 0% 0%
SC 96% 4% 0% 98% 2% 0%
ST 100% 0% 0% 100% 0% 0%
General 99% 1% 0% 98% 2% 0%
Female 99% 1% 0% 99% 1% 0%
Male 98% 2% 0% 98% 2% 0%
Minority 98% 2% 0% 100% 0% 0%
Others 99% 1% 0% 98% 2% 0%
8.0 Credit
This section presents the awareness level of respondents on different loan products. It was
found that the overall respondents‘ awareness on different loan products across all strata was
less than 50% (personal loan - 40%, vehicle loan - 42%, education loan - 40%, non-farm loan
- 44% and agriculture loan - 49%). Significantly, there is visible enhancement in awareness
among the participants of formal programme when compared to the informal programme.
The participants of the formal programme were found to be more aware of agriculture and
allied loan products. The content covered about various loan products is more in the formal
training programmes than in the informal training programmes (see Table No. 14).
Participants‘ awareness for different loan products is also high among the formal FLP
participants. It also shows that informal training content and awareness are more focused
towards personal or general purpose loan or agri-allied loan, especially from SHGs. There is
Uttar Pradesh State Report
Page 18 of 38
visible difference in awareness among the participants of formal programme compared to
informal.
(A detailed list of loan products and its awareness across different category of respondents
are presented hereunder vide Table 14)
Table 14: Different Loan product covered in FLP
Type of Loan Informal Formal Grand Total
Personal Loan 46% 64% 57%
Vehicle Loan 41% 60% 52%
Education Loan 37% 60% 51%
Non Farm Loan 45% 60% 54%
Agriculture Loan 36% 63% 52%
Agriculture Allied Loan 40% 71% 59%
Total Participants 416 624 1040
8.1 Awareness on Interest Rate of different Institutions
Overall, the respondents were well aware of the interest rates of loans from Bank and SHGs.
However, awareness on other institutions like the MFI and companies is low. Interestingly
the men were found to be more aware of the interest rates of Bank when compared to women.
Similarly, women were more aware of the interest rates of SHG and MFI. Once again, the
formal training programmes were found to be more effective in bringing awareness among
the participants when compared to informal ones. The details on analysis of responses on
interest rates are furnished under Annexure IV.
8.2 Awareness on procedure and documentation
Overall, respondents were aware of the procedure and documentation of institutions like
Banks and SHGs. There is significant increase in the awareness level of the participants of
formal programme about procedure and documentation. (Details are attached in Annexure)
8.3 Impact
Field team observed that the participant‘s awareness and knowledge was found high for
formal programme, but, interest rates was found to be much higher for informal programme.
The reason behind this was, formal programme is informing on all institutions but not
covering in-depth. The formal programme is project based and run for particular period while
informal is a continuous process wherein the participants also engage in financial
transactions, leading to higher knowledge about interest rates and other expenses.
Uttar Pradesh State Report
Page 19 of 38
9.0 Insurance
9.1 Insurance Products
It was found that 69% respondents were aware of products related to life insurance. The
overall trend shows the awareness level of respondents in decreasing order was health
insurance (39%), cattle insurance (38%) and asset and micro enterprise insurance (27%).
However, both the informal and formal programmes have not significantly raised the
awareness levels of respondents as far as insurance products are concerned. Details are
furnished under Annexure VII.
While analyzing the content covered on insurance, it is found that in all training programmes
the coverage has been low. Based on the discussions the reason for the low coverage of
insurance, it was found that the subject is more technical or difficult for participants to
understand the concept.
Even though both the formal and informal training programmes emphasised on the need for
insurance, the other features like the terms and conditions of risk cover and when the claim
could be rejected were not covered by the programmes. Likewise, other features of insurance
like the maturity value and amount of risk coverage were also not taught to the participants in
both the programmes.
10.0 Post FLP empowerment of Female participants
Only 30% of the women reported to be head of the family, the corresponding figure for men
was 69 percent. The following Table no. 15 shows that 66% women respondents reported as
participating in financial decision making. Fourteen percent participants reported no change
in their status. Overall, formal training programme was found to be more effective. The field
team found that women in Rae Barely were more empowered than women in other areas. The
reason found to be the women involvement in income generation activities mainly through
enterprise development. This helps them in their skill enhancement and exposure which also
facilitated to take part in household decision making. Details on responses about status on
decision making are presented under Annexure VIII.
Table 15: Empowered after FLP
Categ
ory
Informal Formal Total
Yes,
I
enjo
y
bett
er
stat
us
Alrea
dy
part
of
decisi
on
maki
ng
No
,Cha
nge
No
Respo
nse
Yes,
I
enjo
y
bett
er
stat
us
Alrea
dy
part
of
decisi
on
maki
ng
No ,
Chan
ge
No
Respo
nse
Yes,
I
enjo
y
bett
er
stat
us
Alrea
dy
part
of
decisi
on
maki
ng
No
,Cha
nge
No
Respo
nse
BC 56% 21% 16% 6% 57% 11% 18% 14% 57% 17% 17% 10%
SC 63% 14% 18% 5% 83% 5% 8% 4% 78% 7% 11% 4%
ST 50% 17% 33% 0% 50% 0% 42% 8% 50% 6% 39% 6%
Gener
al
63% 21% 11% 6% 71% 7% 14% 7% 66% 15% 12% 7%
Uttar Pradesh State Report
Page 20 of 38
Categ
ory
Informal Formal Total
Yes,
I
enjo
y
bett
er
stat
us
Alrea
dy
part
of
decisi
on
maki
ng
No
,Cha
nge
No
Respo
nse
Yes,
I
enjo
y
bett
er
stat
us
Alrea
dy
part
of
decisi
on
maki
ng
No ,
Chan
ge
No
Respo
nse
Yes,
I
enjo
y
bett
er
stat
us
Alrea
dy
part
of
decisi
on
maki
ng
No
,Cha
nge
No
Respo
nse
Minori
ty
63% 20% 13% 5% 53% 0% 24% 24% 60% 16% 15% 9%
Others 59% 19% 16% 6% 72% 8% 13% 7% 67% 12% 14% 7%
Total 59% 19% 15% 6% 72% 7% 13% 8% 66% 13% 14% 7%
10.1 Topics suggested for improved training
The topics suggested by participants for improvement of FL training have been shown in
Table No 16. The participants are looking for more elaborative information on process of
taking loan, loan products, insurance products and their terms and conditions. At the same
time there is an urge to know about different saving products.
Table 16: Topics suggested to be covered in FLP
Products Particulars Informal Formal Grand Total
Savings Information on Savings Products 33% 31% 31%
Opening Account 22% 21% 22%
Operating and Documentation 19% 21% 20%
Source of Cheaper Loan 26% 27% 27%
Total Number of Responses 916 1605 2521
Loans Process to take Loan 44% 46% 45%
Info on different loan products 45% 47% 46%
Other Information 11% 7% 9%
Total Number of Responses 499 750 1249
Insurance Information on Insurance Products 30% 31% 31%
Process of buying Insurance 21% 21% 21%
About Terms and Conditions 33% 29% 31%
Where can insurance be purchased 16% 19% 18%
Total Number of Reponses 745 1438 2183
Uttar Pradesh State Report
Page 21 of 38
Part II
Compilation and Analytical Overview of Financial
Literacy Packages in Uttar Pradesh
11.0 Summary
Financial inclusion has been strategized as one of the potent tools to alleviate poverty by the
Government of Uttar Pradesh. To this end, the State has initiated Financial Literacy
Programmes (FLPs) in collaboration with Government agencies, voluntary organisations and
financial institutions. An independent assessment of the FLPs run in the State (using both
primary and secondary data), undertaken to give an overview of available FL packages,
identified the major active players working in both formal and informal FLPs. They include
organizations like ISMW, CASPHOR, NEED and bankers like Bank of Baroda and Union
Bank. The formal FLPs are mostly funded by UNDP implemented through ISMW and
NABARD in the State, whereas the informal FLPs make use of the FLCC and SHG
programmes to impart trainings. Of the two set of FLPs, the formal programmes were found
to be more effective and preferred by the beneficiaries, as these used lectures, audio-visual
aids, posters and puppet shows. The other reasons for its success involve cooperation of
Banks, hand-holding support and continuous monitoring.
12.0 Study Area
The study covered two formal and three informal programmes in the nine districts namely
Jaunpur, Mirzapur, Agra, Baharaich, Jhansi, Meerut, Rae Barely, Varanasi and Lucknow.
The programmes of ISMW and NABARD were studied for the purpose of formal FLP,
whereas the programmes of CASPHOR, NEED and Bank of Baroda were studied for
informal FLP. Here is an account of area-wise programmes and their resource agencies:
Table 17: Area-wise FL programmes and resource agencies
Type of
Programme
Programme Name Support
Agency
Facilitating
Agency
Area Covered
Formal Financial Literacy for poor
women
UNDP ISMW Jaunpur, Mirzapur
UNDP-NABARD Financial
Literacy
NABARD NABARD Agra, Baharaich,
Meerut, Jhansi
Informal Financial Literacy credit
counselling
Bank of
Baroda
Bank of Baroda Rae Barely
MFI CASPHOR Varanasi
Uttar Pradesh State Report
Page 22 of 38
Type of
Programme
Programme Name Support
Agency
Facilitating
Agency
Area Covered
MFI NEED Lucknow
Financial Literacy credit
counselling
Union Bank of
India
Varnasi – visited
only office
Financial Literacy credit
counselling
Disha Not visited
13.0 Formal programmes
There are two major formal FLPs run in the State: Financial Literacy for Poor Women and
the NABARD FLP.
13.1 Financial Literacy for Poor Women
Name of programme: Financial Literacy for Poor Women
Sponsored agency: UNDP
Content designed and facilitated by: ISMW
Implementing agency: Mahila Prabhodhini Foundation
Objectives:
To build awareness on financial planning
To build awareness for financial planning or thinking about life cycle needs
To build knowledge about basic financial concepts to enable financial decisions on
risks and returns
To create demand for financial services
To build basic financial skills like preparing budget or plan for availing financial
services
To make proper and productive use of credit
Timely repayment and scaling up.
Duration of training: Three days (9 hours - 3hrs per day)
Description
The sample study found this programme to be successful and best in both imparting
knowledge on financial literacy and financial inclusion. A total of 2,776 participants have
been trained; 936 frill accounts and 1,418 saving account have been opened; 658 applications
for life insurance (Jan Shree Bima) and Rs.8, 600 deposits mobilised in 161 accounts. The
success of programme owes mostly to the structured trainings, timely inputs and continuous
monitoring. ISMW has deployed a separate team for monitoring and providing timely hand-
holding support.
Uttar Pradesh State Report
Page 23 of 38
Content
The content focused on giving inputs on personal financial management and knowledge on
operational part for availing financial services. The topics covered include:
1. Personal financial management
a. Thinking for future vs. day-to-day living
b. Savings – habit formation
c. Credit
d. Consumption – impulsive behaviour/compulsive reasons
e. Insurance
f. Investment
g. Preparing a plan.
2. Operational knowledge to avail financial services (Banking – Savings, Credit and
Remittance)
a. Account opening procedure (for instance, KYC norms)
b. Types of saving accounts
c. Operational aspects (for instance, nomination)
d. Operational instructions (for instance, ‘Either‘ or ‗Survivor‘)
e. Terms and Conditions of credit for different types of schemes
f. How to avail insurance, remittance and services
Tools and methodology
It was found that the teaching aid was a key facilitator as it was tuned with the requirement of
the participants and content delivery channel. It was developed in the local language. The
audio-visual had the most impact compared to other tools. The movies ―Ganga Jamuna‖ and
―Ant & Grasss Hooper‖ were so effective in Jaunpur district that the participants recollected
the content and theme of movie even after three months of training. However, irregular
supply of electricity in few areas did hamper the process. Besides, lecture was also found to
be effective tool after the audio-visual. Overall, all the Training of Trainers (ToTs) were well
planned and monitored regularly.
Table 18: Teaching aids in formal FL programme by ISMW
Teaching aids Tools
- Trainers Guide for FL trainers
- Tips to trainers (soft skills)
- Videos/Films (six): Ant & Grass hopper (Planning), Ganga
Jamuna (planner vs. non-planner) and Izzat ka Sawal Hai
(Big ticket expenses)
- Posters (21 on messages of Financial Literacy)
- Songs (thematic songs on financial literacy components)
- Posters Booklet, Calendar, Budget Book and Charts
Lecture, Audio-visual
display, Flip charts, Flash
Cards and Posters
Uttar Pradesh State Report
Page 24 of 38
Observation
Overall, the programme was found very effective by meeting its objectives. Beneficiaries
from Jaunpur district found to be more empowered compared to Mirzapur and Sant Rabi Das.
The proactive role of bankers was found to be one of significant factors of success. However,
most of the representatives of the Banks are not well equipped to handle training and
motivation. And one of the reason was allotted less amount for pilot study, particularly, not
included the cost of monitor and follow-up for implementing agency staff. In eastern U.P.,
particularly there was a huge current problem, here, generators cost was also not included on
project proposal. So, Implementer is paid from his pocket.
13.2 NABARD Financial Literacy Programme
Objective
Financial Inclusion through Financial Literacy
Description
The project has been implemented through partnership with local NGOs like Bal Chetana
Trust, Dev. Association for Human Advancement (DEHAT), Panchaeel Development Trust,
Bird Development Trust, Jan Kalyan Samastha and working in remote villages of Agra,
Baharaich, Jhansi and Meerut districts. The advantage of this programme is reaching interior
areas, involving children and college students. Audio-visual aids, puppet shows, quiz, poster,
wall painting and slogan have been used as main teaching aids. The quiz programme
conducted in the nearby schools and colleges sensitized the next generation considerably. The
movies ―Ganga Jamuna‖ and ―Raju Dreams and Money Tree‖ (developed by RBI) have been
found to be very effective in enhancing the awareness among the participants.
Although NABARD programme has tried to cover all parts of UP, there is a need for
continuous hand-holding support in financial inclusion. The programme covered tribal
households in a village in Behariach district have been covered under this programme. Yet,
the villagers urged for repetition of the programme, as one-time training here was inadequate
to impart knowledge among the participants. There is also demand from the other tribal
households in the area.
Training Aids
- Calendar
- Poster
- Wall Paintings
- Slogans
Methodology
- Village level meeting
- Quiz at village and schools and colleges
- Puppet show
- Two Films
Uttar Pradesh State Report
Page 25 of 38
Observation
Even though the programme has reached the remote tribal villages, the programme was found
to be less effective due to lack of continuous support and monitoring from resource agencies.
Prior intimation was not given to community. So, participation was less. A marvellous
achievement are also happened in NABARD programme i.e., particularly reaching Bichaaiah
area at Baharaich District which is un-revenue ST village, 5 kms far from NEPAL border and
In Agra District, NGO had initiated Village Level Credit Counselling Centre at Taharpur
Village of Sainya Block and supporting surrounding two village populations.
The major gap found in NGOs is: Identifying the right NGO.
The following table shows over all districts, villages covered in NABARD-UNDP
Collaboration project on Financial Inclusion (through Financial Literacy)
S.
No.
Name of the
District
No. of
villages
covered
No. district
wise
meeting
with
NGOs,
Bankers,
LDM,
Local
leaders….
No. of
villages
having
village
level
meeting
(interactin
g with
PACS,
SHGs)
Puppet
Shows /
Nukkad
Nataks
was
happene
d in no.
of
villages
Quiz
Progr
amm
e at
Schoo
ls and
colleg
es
Wall
Paintin
g with
slogan
Remarks
1 Allahabad 5 1 meeting 5 5 5 0 Not visited
2 Agra 6 1 meeting 6 6 6 0 NGO started
Credit
Counselling
Centre at Village
level. It is useful
for 3 neighbour
villages. Visited
1 FFL and 4
VDP.
3 Firozabad 4 1 meeting 4 5 5 5 Not visited
4 Azamgarh 5 1 meeting 5 5 5 0 Not visited
5
Baharaich
4
1 meeting
4
4
4
0
Visited non-
revenue village.
Good at
Education
system
6 Bareily 5 1 meeting 5 5 1 0 Not visited
7
Barabanki
5
1 meeting
5
5
2
5
Not visited
8
Jhansi
5
1 meeting
5
2
2
0
Visited
9
Sitapur
5
1 meeting
5
5
5
0
Not visited
10
Moradabad
5
1 meeting
5
5
5
0
Not visited
11
Unnao
5
1 meeting
5
5
4
0
Not visited
12
Gonda
4
1 meeting
4
4
4
0
Not visited
13
Etawah
5
1 meeting
5
0
5
0
Not visited
Uttar Pradesh State Report
Page 26 of 38
S.
No.
Name of the
District
No. of
villages
covered
No. district
wise
meeting
with
NGOs,
Bankers,
LDM,
Local
leaders….
No. of
villages
having
village
level
meeting
(interactin
g with
PACS,
SHGs)
Puppet
Shows /
Nukkad
Nataks
was
happene
d in no.
of
villages
Quiz
Progr
amm
e at
Schoo
ls and
colleg
es
Wall
Paintin
g with
slogan
Remarks
14
Meerut
5
1 meeting
5
2
5
0
Visited
Note: Opinion of senior officers was assessing the impact for 15 days Programme is very tough.
Overall observation of formal programmes
Training of Trainers is the best tool used by both the players and the village level meeting
emerged as the best training methodology. The state and district level meetings played as a
platform to get the overall view and understanding of all the stakeholders. In terms of tools,
films, puppet shows and quizzes were the most effective. The content had to be repeated
twice in the remote areas. Thus, it becomes vital to give a break of 3-4 days between two
training days as people need time for internalising new concepts. And, in case of remote areas
(particularly tribal), training has to cover more times than compare to normal rural areas. It
was also observed that wherever the banks were cooperative and the trainings were
accompanied by skill development trainings, the programme was a huge success.
14.0 Informal programmes
Objective
To provide credit counselling on repayment pattern, re-structuring, re-scheduling and fresh
credit during distress situations for rural people.
Description
It was found that most of the informal programmes were in the form of Financial Literacy
Credit Counselling (FLCC). The major objectives of FLCC are financial credit uptake,
providing financial counselling services through face-to-face interaction and e-mail, fax and
mobile, among others and educating rural and urban mass to avail products and services from
formal financial sector.
The major players in the informal FLPs in the State are the existing banks (Bank of Baroda
and Union Bank, Disha initiative of ICICI Bank), MFI (NEED and Cashpor) and NGOs
(Development Alternatives, NABARD partner). The content mainly covers the loan attributes
of the available loan products. The representatives of these institutions visit respective village
to provide concept and knowledge of loan products, their advantages and how to avail them.
The major target audience in informal FLPs is farmers, school children and youth. The audio-
Uttar Pradesh State Report
Page 27 of 38
visual aids are not used here, as do the formal programmes. Yet, comic books, style
pamphlets and posters used to inform clients about available banking services and schemes.
Content
Opening bank account
Operational knowledge on FL services
Procedure for loan, savings and insurance system
Facilitation of government schemes
Identification of Rs.500/- and Rs.1000/- notes
Major Players
The study identified three major players in the informal FLPs in the State: SAARTHEE
initiative of Bank of Baroda, (Bank Bandhu) initiate of Union Bank of India and Disha
initiative of ICICI Bank
Bank of Baroda has opened FLCC Centres as part of their Corporate Social Responsibility
(CSR) initiative. The initiative is christened as ―SAARTHEE‖ amply indicating its basic
objective of steering those under financial distress and educating others to avoid financial
mess. In the same way, Union Bank of India has opened FLCC Centres and yet to be named,
tentative name is: Bank Bandhu. In the same line, ICICI bank has opened FLCC Centres and
performing very well by giving best service to community.
Summary and Way Forward
Summary
The population in Uttar Pradesh is more than 150 million. Nearly 53 banks are providing
bank services. About 30% of the villages are covered through the banking services and only
5% of the villages aware of Financial Literacy. Financial education is seen as an imperative
step towards financial inclusion and is required for all categories like poor, medium, rich
including rural, semi-urban and urban areas. The focus of financial literacy is primarily the
individual, who usually has limited knowledge and skills to appreciate the complexities of
financial dealings with financial intermediaries on a continuous basis. Through financial
Literacy Programme, financial education has reached to various categories like female,
deprived communities like SC and ST categories and covering interior villages.
Uttar Pradesh State Report
Page 28 of 38
SWOT for FL Programme Strengths
ISMW FL training Programme:
o Identified 3 poor districts
o Covered poor families
o Proper planning and implementing
o Prior intimation to participants
o Used the piloted modules, tools and
techniques
o Used local trainers
o ToT had conducted in proper
structure way
o Exposure visit had organized for
trainers
o Monitoring and follow-up on FL and
facilitating for FI
o Involved local reputed NGO
o Made films with live case studies.
So, videos like Ganga-Jamuna, ant
and grass hopper, big tickets (budget
maintenance for marriages, death
ceremonies, big festivals) are
touching all hearts and able to
remember for long period
o ISMW had monitored implementing
agency
NABARD
o Covered interior areas, covering un—
revenue forest area like Bichaiah, 135
km far from Baharaich District and
facilitate to open bank accounts.
o Piloted in all regions of U.P i.e., 14
districts
o Facilitated NGO to initiate Village
Level FLCC at Agra
o Quiz, puppet show, Raju-ka-Phed
Video and involving school and
college students are highlighted
Weaknesses
Some of the Bankers are not favour of
involvement of private organization
programmes
Revised FLCC concerned staff are not clear
with roles and responsibilities
ISMW training Programme:
o Lack of planning on budget
preparation.
Shortage of funds for salaries of
trainers, particularly for the period
of monitoring and follow-up.
Shortage of funds for showing films
at villages, particularly for using
invertors in So, ISMW and NGO
paid additionally from their pocket.
o In-depth topics have to cover on
loaning interest rates
NABARD training Programme
o No monitoring from State Level Body
o No prior intimation to villagers
o Effective training programme is based
on District level officer and his
commitment on work. So, it varies
from one district to another district
o State as well as District officials have
lack of confidence on programmes
Opportunities
Both Government and Private Organizations
have piloted FLP across the state covering
both rural and urban areas. Model is well
understood and can be scaled-up further
NABARD is already involved in FLP. So,
there is lot of advantage to take further,
because, it is maintaining FI fund and its
presence in all districts
U.P. is largest state as well as poorest state in
India. So, FL is the one of the appropriate
measures to resolve or reduce the poverty
Adding FL topic in U.P. State Syllabus.
Threats
Both Private and Government Organizations
sometimes face bureaucratic hurdles
It is still a induced program with directions
from top, be it NABARD or facilitating NGO
Uttar Pradesh State Report
Page 29 of 38
Future Strategies
1. Forming a Nodal Agency: Nodal agency have to identify to take further steps on FL
Programme. It helps to reduce (or) stop the duplication of similar activities and also
helps on mobilizing various FL resource fund from various schemes through
convergence
2. Scaling –up: U.P. is the large state. So, initially, focus to scale-up in poorest districts
of U.P. like Eastern U.P., Bundhel khand area etc
3. Identify the State as well as Regional / District Level Implementing Agencies: To
implement the FL Programme, identify the State Level Implementing Agency, who
has good command on FL and FI, through knowledge and experience. And also,
identify the regional /district level NGOs to implement the programme in ground level
4. Modify and Finalization of modules: Modules are already available. But, there is a
need to re-customize by incorporating some more contents like interest rates as well
as different types of insurance products etc and finalize the modules
5. Follow-up and monitoring: There is a need to regular follow-up and monitoring the
FLP. During follow-up, facilitator must link trainee with FI.
General recommendations
Bankers must aware on FL importance including why to open No Frill Accounts for
poor community
Bankers have to follow RBI guidelines like not using the banker‘s premises for FLCC
that means it also includes not using the premises of Bankers RUDSETI‘s also.
FL success when FL goes beyond it and includes skill development, it gives whole
shape and support for poor.
Uttar Pradesh State Report
Page 30 of 38
ANNEXURES
Uttar Pradesh State Report
Page 31 of 38
Annexure I: Profile of Respondents
Detailed district-wise coverage of sample respondents in below table:
District
Gen
der
Caste Aged Health Category Religion Annual Income in INR Grand
Total BC SC ST General <60 Yrs >=60 yrs PWD PWHA Others M
i
n
o
r
i
t
y
O
t
h
e
r
s
> 40,000 <=40,000
AGRA
Female 2% 0% 0% 1% 3% 0% 1% 0% 2% 0% 3% 1% 2% 3%
Male 1% 2% 0% 2% 4% 0% 0% 0% 4% 0% 5% 2% 3% 5%
BAHRAICH
Female 4% 1% 1% 3% 8% 0% 0% 0% 8% 0% 8% 1% 8% 8%
Male 2% 1% 0% 1% 3% 0% 0% 0% 3% 0% 3% 0% 3% 3%
JAUNPUR
Female 3% 8% 0% 0% 11% 0% 0% 0% 11% 0% 11% 1% 10% 11%
Male 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
JHANSI
Female 2% 1% 0% 1% 4% 0% 0% 0% 4% 0% 4% 2% 2% 4%
Male 7% 4% 0% 3% 12% 1% 1% 0% 13% 0% 13% 5% 8% 13%
LUCKNOW
Female 6% 3% 0% 5% 14% 0% 1% 0% 14% 4% 10% 9% 5% 14%
Male 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
MEERUT
Female 0% 0% 0% 1% 2% 0% 0% 0% 2% 1% 1% 1% 1% 2%
Male 1% 1% 0% 9% 9% 2% 0% 0% 11% 1% 10% 9% 2% 11%
MIRZAPUR
Female 1% 8% 0% 0% 10% 0% 0% 0% 9% 0% 9% 1% 9% 10%
Male 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
RAEBARELI
Female 1% 0% 0% 2% 3% 0% 0% 0% 4% 0% 3% 1% 3% 4%
Male 0% 0% 0% 0% 1% 0% 0% 0% 0% 0% 1% 0% 0% 1%
VARANASI
Female 7% 1% 0% 1% 10% 0% 0% 0% 9% 2% 8% 3% 7% 10%
Male 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Total 38% 31% 2% 30% 94% 6% 4% 0% 95% 9% 91% 36% 64% 100%
Uttar Pradesh State Report
Page 32 of 38
Annexure II: Tools used in the Financial Literacy Programmes
Tools BC SC ST General Female Male <60 >=60 PWD PWHA Others Minority Other Total
Informal
Video 11% 11% 11% 12% 9% 17% 11% 20% 10% 50% 11% 1% 13% 11%
Street Play 6% 4% 6% 7% 3% 12% 6% 11% 5% 0% 6% 1% 7% 6%
Role Play 1% 0% 0% 2% 1% 2% 1% 5% 0% 0% 1% 0% 1% 1%
Stories 6% 5% 11% 8% 5% 11% 6% 9% 0% 0% 7% 0% 7% 7%
Posters 17% 20% 28% 18% 19% 18% 18% 16% 20% 50% 18% 16% 18% 18%
Songs 4% 5% 6% 6% 4% 7% 5% 7% 0% 0% 5% 0% 6% 5%
Flash Charts 2% 3% 6% 4% 3% 4% 3% 2% 0% 0% 3% 0% 4% 3%
Lectures 50% 51% 28% 36% 53% 26% 46% 25% 65% 0% 44% 79% 41% 44%
Games 2% 1% 0% 4% 2% 3% 3% 2% 0% 0% 3% 1% 3% 3%
Exposure Visit 1% 1% 6% 2% 1% 1% 1% 2% 0% 0% 1% 1% 1% 1%
Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Formal
Video 16% 17% 11% 13% 16% 14% 15% 14% 19% 17% 15% 12% 16% 15%
Street Play 16% 12% 19% 16% 12% 19% 14% 20% 17% 6% 15% 16% 14% 15%
Role Play 4% 4% 6% 8% 5% 6% 5% 6% 3% 6% 5% 5% 5% 5%
Stories 10% 13% 13% 11% 13% 9% 12% 8% 9% 17% 12% 13% 11% 11%
Posters 14% 16% 15% 13% 15% 13% 15% 11% 19% 17% 14% 13% 15% 15%
Songs 9% 10% 11% 10% 10% 9% 10% 8% 5% 11% 10% 13% 9% 10%
Flash Charts 6% 6% 6% 4% 6% 4% 6% 5% 3% 6% 6% 4% 6% 5%
Lectures 16% 15% 11% 16% 13% 20% 15% 19% 20% 17% 16% 12% 16% 16%
Games 6% 5% 6% 7% 7% 4% 6% 6% 1% 6% 6% 8% 6% 6%
Exposure Visit 2% 1% 2% 2% 2% 2% 2% 4% 3% 0% 2% 3% 2% 2%
Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Total
Video 14% 16% 11% 13% 14% 15% 14% 15% 17% 20% 14% 9% 15% 14%
Street Play 13% 11% 15% 14% 10% 18% 12% 18% 15% 5% 13% 11% 13% 13%
Role Play 3% 4% 4% 7% 4% 5% 4% 6% 3% 5% 4% 4% 4% 4%
Stories 9% 12% 13% 10% 11% 10% 11% 8% 8% 15% 10% 9% 10% 10%
Posters 15% 17% 18% 14% 16% 14% 16% 12% 19% 20% 15% 14% 16% 15%
Songs 8% 9% 10% 9% 9% 8% 9% 8% 4% 10% 9% 9% 9% 9%
Flash Charts 5% 6% 6% 4% 6% 4% 5% 4% 3% 5% 5% 3% 5% 5%
Lectures 26% 19% 15% 22% 23% 21% 22% 20% 28% 15% 22% 33% 21% 22%
Uttar Pradesh State Report
Page 33 of 38
Tools BC SC ST General Female Male <60 >=60 PWD PWHA Others Minority Other Total
Games 5% 5% 4% 6% 6% 4% 5% 5% 1% 5% 5% 6% 5% 5%
Exposure Visit 2% 1% 3% 2% 2% 2% 2% 3% 3% 0% 2% 3% 2% 2%
Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Annexure III: Participants responses on a repeat FLP Programme BC SC ST General Female Male <60 >=60 PWD PWHA Others Minority Others Grand
Total
Informal 94% 92% 100% 97% 97% 87% 95% 93% 94% 100% 95% 100% 94% 95%
Formal 96% 93% 100% 97% 94% 96% 95% 98% 96% 75% 95% 94% 95% 95%
Total 93% 91% 95% 96% 94% 91% 93% 97% 93% 80% 93% 95% 93% 93%
Participants in Informal 189 85 6 136 329 87 402 14 18 1 397 65 351 416
Participants in Formal 201 236 13 174 369 255 573 51 25 4 595 31 593 624
Total Participants 399 326 20 314 706 353 994 65 44 5 1010 99 960 1040
Uttar Pradesh State Report
Page 34 of 38
Annexure IV: Responses on Satisfaction level Type of
Training
Satisfaction Level Caste Gender Aged Health Conditions Gender Grand
Total BC SC ST General Female Male <60
Yrs
>=60
yrs
PWD PWHA Others Minority Others
Informal
Fully Satisfied 55% 61% 67% 51% 56% 52% 55% 64% 50% 100% 55% 40% 58% 55%
Satisfied to some
extent
32% 32% 33% 44% 35% 38% 36% 29% 33% 0% 36% 55% 32% 36%
Not Satisfied 13% 7% 0% 4% 9% 10% 9% 7% 17% 0% 9% 5% 10% 9%
Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Formal
Fully Satisfied 59% 73% 62% 68% 69% 64% 67% 71% 72% 100% 67% 77% 66% 67%
Satisfied to some
extent
33% 22% 38% 28% 27% 29% 28% 24% 20% 0% 28% 23% 28% 28%
Not Satisfied 7% 6% 0% 3% 4% 7% 5% 6% 8% 0% 5% 0% 6% 5%
Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
U P State
Fully Satisfied 57% 70% 63% 61% 63% 61% 62% 69% 63% 100% 62% 52% 63% 62%
Satisfied to some
extent
33% 24% 37% 35% 31% 31% 31% 25% 26% 0% 31% 45% 29% 31%
Not Satisfied 10% 6% 0% 4% 6% 8% 7% 6% 12% 0% 7% 3% 7% 7%
State Total 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Sample Size Informal 189 85 6 136 329 87 402 14 18 1 397 65 351 416
Formal 201 236 13 174 369 255 573 51 25 4 595 31 593 624
Total 390 321 19 310 698 342 975 65 43 5 992 96 944 1040
Uttar Pradesh State Report
Page 35 of 38
Annexure V: Awareness about financial institutions
Institutions Awareness Level Informal Formal
BC SC ST General BC SC ST General Total (Overall)
Bank NO 42% 39% 67% 24% 23% 16% 31% 22% 26%
Yes but no idea of interest rate 44% 49% 33% 46% 62% 59% 62% 47% 52%
Yes also know the interest rate 14% 12% 0% 29% 15% 25% 8% 31% 21%
SHG/JLG/ CIG NO 41% 56% 67% 29% 41% 21% 46% 39% 36%
Yes but no idea of int rate 32% 25% 0% 37% 34% 44% 38% 35% 35%
Yes also know the int rate 27% 19% 33% 34% 25% 35% 15% 26% 28%
Post Office NO 68% 80% 67% 65% 64% 65% 69% 44% 63%
Yes but no idea of int rate 28% 18% 33% 25% 33% 29% 31% 48% 31%
Yes also know the int rate 4% 2% 0% 10% 2% 6% 0% 8% 5%
Companies NO 73% 82% 83% 70% 75% 72% 69% 56% 71%
Yes but no idea of int rate 21% 13% 17% 21% 23% 25% 31% 37% 24%
Yes also know the int rate 6% 5% 0% 10% 2% 3% 0% 6% 5%
PACS
(Cooperatives)
NO 89% 96% 83% 88% 84% 87% 100% 64% 84%
Yes but no idea of int rate 11% 4% 17% 10% 16% 12% 0% 32% 15%
Yes also know the int rate 1% 0% 0% 2% 0% 0% 0% 5% 1%
Chit Funds NO 92% 98% 100% 96% 90% 89% 100% 84% 91%
Yes but no idea of int rate 8% 2% 0% 4% 9% 11% 0% 16% 9%
Yes also know the int rate 0% 0% 0% 0% 0% 0% 0% 0% 0%
Sample size 189 85 6 136 201 236 13 174 1040
Uttar Pradesh State Report
Page 36 of 38
Annexure VI: Responses on awareness about Interest Rates Formal/
Informa
l
Interest Rate in
Institutions
BC SC ST Gene
ral
Fema
le
Male <60 >=60 PWD PWH
A
Othe
rs
Mino
rity
Othe
rs
Gran
d
Total
Informal
Interest Rate of Bank 42% 51% 83% 63% 47% 68% 50% 79% 67% 0% 51% 43% 53% 51%
Interest Rate of SHG 37% 42% 83% 47% 41% 45% 41% 71% 44% 0% 42% 25% 45% 42%
Interest Rate of MFI 60% 56% 67% 58% 64% 40% 58% 71% 72% 0% 58% 72% 56% 59%
Interest Rate of Companies 23% 21% 50% 28% 22% 33% 23% 57% 39% 0% 24% 18% 26% 25%
Formal
Interest Rate of Bank 69% 83% 77% 87% 77% 83% 79% 80% 72% 75% 79% 81% 79% 79%
Interest Rate of SHG 64% 82% 69% 56% 81% 52% 71% 51% 60% 25% 70% 55% 70% 69%
Interest Rate of MFI 29% 45% 23% 35% 38% 35% 38% 20% 40% 25% 37% 35% 37% 37%
Interest Rate of Companies 33% 47% 31% 48% 41% 45% 43% 37% 40% 50% 43% 48% 42% 43%
Total
Interest Rate of Bank 56% 74% 79% 76% 63% 79% 67% 80% 70% 60% 68% 55% 69% 68%
Interest Rate of SHG 51% 72% 74% 52% 62% 50% 58% 55% 53% 20% 58% 34% 60% 58%
Interest Rate of MFI 44% 48% 37% 45% 50% 36% 46% 31% 53% 20% 45% 60% 44% 45%
Interest Rate of Companies 28% 40% 37% 39% 32% 42% 35% 42% 40% 40% 35% 28% 36% 35%
Sample
Informal 189 85 6 136 329 87 402 14 18 1 397 65 351 416
Formal 201 236 13 174 369 255 573 51 25 4 595 31 593 624
Total 390 321 19 310 698 342 975 65 43 5 992 96 944 1040
Uttar Pradesh State Report
Page 37 of 38
Annexure VII: Awareness on Insurance Products
Formal/Informal Insurance Product BC SC ST General Female Male <60 >=60 PWD PWHA Others Minority
Informal
Life Insurance 63% 53% 50% 79% 66% 67% 65% 86% 56% 0% 67% 69%
Health Insurance 39% 38% 67% 49% 41% 48% 42% 64% 28% 0% 43% 38%
Asset Insurance 20% 20% 50% 35% 25% 28% 24% 57% 11% 0% 26% 15%
Cattle Insurance 20% 29% 50% 35% 25% 37% 26% 57% 11% 0% 28% 22%
Micro Enterprise Insurance 17% 22% 33% 32% 22% 31% 22% 57% 11% 0% 24% 20%
Other Insurance 6% 11% 17% 10% 7% 13% 8% 14% 11% 0% 8% 2%
Formal
Life Insurance 61% 74% 62% 76% 66% 76% 71% 59% 64% 75% 70% 65%
Health Insurance 35% 36% 31% 39% 31% 45% 38% 27% 40% 50% 36% 39%
Asset Insurance 26% 28% 38% 32% 24% 35% 29% 20% 24% 50% 29% 32%
Cattle Insurance 34% 47% 46% 53% 39% 52% 45% 43% 36% 75% 45% 45%
Micro Enterprise Insurance 28% 23% 23% 40% 19% 44% 30% 22% 28% 50% 29% 26%
Other Insurance 10% 10% 0% 17% 7% 19% 12% 14% 16% 0% 12% 6%
Did not attend
Life Insurance 67% 80% 100% 75% 75% 73% 74% 100% 72% 67%
Health Insurance 56% 40% 100% 0% 50% 36% 42% 0% 44% 33%
Asset Insurance 44% 20% 100% 25% 50% 27% 37% 0% 39% 33%
Cattle Insurance 44% 40% 100% 25% 50% 36% 42% 0% 44% 33%
Micro Enterprise Insurance 44% 20% 100% 0% 50% 18% 32% 0% 33% 33%
Other Insurance 44% 20% 0% 50% 25% 45% 37% 100% 33% 0%
Total
Life Insurance 62% 69% 60% 77% 66% 74% 69% 65% 61% 60% 69% 68%
Health Insurance 37% 37% 45% 43% 36% 46% 39% 35% 34% 40% 39% 38%
Asset Insurance 23% 25% 45% 33% 25% 33% 27% 28% 18% 40% 28% 21%
Cattle Insurance 28% 42% 50% 45% 33% 48% 37% 46% 25% 60% 38% 29%
Micro Enterprise Insurance 23% 23% 30% 36% 21% 40% 27% 29% 20% 40% 27% 22%
Other Insurance 9% 10% 5% 14% 7% 18% 11% 14% 16% 0% 11% 3%
Sample Size
Informal 189 85 6 136 329 87 402 14 18 1 397 65
Formal 201 236 13 174 369 255 573 51 25 4 595 31
Did not attend 9 5 1 4 8 11 19 1 18 3
Total 399 326 20 314 706 353 994 65 44 5 1010 99
Uttar Pradesh State Report
Page 38 of 38
Annexure VIII: Responses on improvement in decision making status Category Informal Formal Total
Yes, I
enjoy
better
status
Already
part of
decision
making
No
Change
No
Response
Yes, I enjoy
better status
Already
part of
decision
making
No
Change
No
Response
Yes, I
enjoy
better
status
Already
part of
decision
making
No
Change
No
Response
BC 56% 21% 16% 6% 57% 11% 18% 14% 57% 17% 17% 10%
SC 63% 14% 18% 5% 83% 5% 8% 4% 78% 7% 11% 4%
ST 50% 17% 33% 0% 50% 0% 42% 8% 50% 6% 39% 6%
General 63% 21% 11% 6% 71% 7% 14% 7% 66% 15% 12% 7%
Minority 63% 20% 13% 5% 53% 0% 24% 24% 60% 16% 15% 9%
Others 59% 19% 16% 6% 72% 8% 13% 7% 67% 12% 14% 7%
Total 59% 19% 15% 6% 72% 7% 13% 8% 66% 13% 14% 7%
Recommended