Smaller investments bigger benefits
SKDRDP in order to develop the rural masses provides 3 main financial instruments.
These microfinance activities provides stable ground for poverty alleviation. The loans are provided by the banks and SKDRDP acts as bank linkage to members. SKDRDP brings banking closer to people with its BC Suvidha Scheme. The BC Suvidha also mobilises savings causing people to inculcate habit of saving. The Business Correspondent lay the foundation of stronger growth. To make the families more stronger from the uncertainties of life, SKDRDP provides Insurance and Pensions. SKDRDP acts as an aggregator/ collection agency for National Pension Scheme by central government. Being a very important program NPS works as division of SKDRDP. There are 2 Insurance programs of SKDRDP. Jeevan Madhura Life Insurance and Sampoorna Suraksha Health Insurance. The Jeevan Madhura is sponsored by LIC and SKDRDP acts as Insurance Broker. Sampoorna Suraksha is a section 25 company and Subsidiary of SKDRDP. Sampoorna Suraksha provides health insurance.
Linkage to the banks (erstwhile Pragathi Nidhi)
SKDRDP initiated a micro-financing scheme known as Pragathinidhi in 1996, which provides loans to members to help promote their livelihoods or develop infrastructure. The linkage to the bank provides adequate funds without any administrative formalities, a convenient tenure, easy accessibility and easy weekly repayment installments. The funds required for lending are sourced from bank loans or the savings of the members which are deposited with the group's account.
In 2003, with plans to extend linkage to the banks on a larger scale, SKDRDP reinvigorated the program with systematic procedures. The group can utilize it for agricultural purposes, infrastructure development, non-formal sector development activities and group enterprises. Now the pragathinidhi has been stopped and SKDRDP has started direct linkage to the banks.
Almost 50% of our country men / women donot have bank accounts. It is the endeavor of the government of India to make everybody an account holder in the bank. Called as Financial Inclusion, this is a gigantic task. SKDRDP has been acting as Business correspondent for achieving financial inclusion. This model envisages financial inclusion at the door step of the poor by opening village offices known as the customer service point. SKDRDP took an active part in implementing the Financial Inclusion plan of the government of India by working as Business Correspondent and Business Facilitator (BC and BF) in all districts of Karnataka. Under the programme SKDRDP promotes Self Help groups enabling the poor people in the remote villages to access banking facilities at their door steps. SKDRDP is BC and BF to State Bank of India, Union Bank of India, Canara Bank, Corporation bank, IDBI bank, Pragathi Krishna Grameen Bank, Vijaya Bank and Syndicate Bank. Here each talluk and city centres are mapped to particular bank's branch. For example- IDBI's Gokul Road brach is used for servicing requests of Navalgund and Dharwad talluk, Similarly Syndicate Bank's Puttur branch is nodal branch for servicing the requests of puttur talluk. SKDRDP working as BC for the last nine years covering almost 17,500 villages and towns. As a BC SKDRDP is using POS (Point of Sale) machines in the villages extensively to conduct the transactions of the poor people with the bank. At present on a weekly basis almost Rs. 80.00 crores is being transacted through this system.
Digitisation of SHG records and documents
SKDRDP has completely digitized the records and documents of all SHGs promoted by it. VB and MSQL based software developed by SKDRDP called ’Suvidha’ has facilitated digitization of socio-economic data as well as day today financial transactions of all the Self Help Groups on real time basis. This software has reduced the burden of book keeping to a great extent and also ensured proper documentation and monitoring. For end to end management of self-help groups, SKDRDP has developed ‘SKDRDP SHG APP’ in 2016. The application deals with both financial and non-financial parameters of SHG functioning. It is interactive with data stored at SKDRDP and Bank server. It is used in submitting loan demand of groups in digital form which hastens the loan processing and makes the loan available in short period. It also provides the facility to track the activities of field staffs and to evaluate them. It is dynamic and generates various reports to track the functioning and health of SHGs. This application is very much user friendly and adaptable to android phones.
Launch of digitized SHG transaction Campaign
In a first of its kind in India SKDRDP, in 2017, launched ‘Digitized SHG transaction Campaign’ which aims to convert all the transactions in SHGs to cash free mode. Under this programme, initially all the SHG members will be opening their SB accounts in banks, through which they will do all their financial transactions. These SB accounts in turn will be linked to their SHG accounts. Thus, it is ultimately resulting in cash free transactions. In spite of the initial hiccups SKDRDP is able to complete financial inclusion data of all its members. More than 3 million Prime Minister Jandhan Yojana Accounts (PMJDY) have been opened and become operational. In a tie up with NABARD, SKDRDP is providing digitised data to NABARD data base regarding financial transactions of 2,50,000 Self Help Groups in Karnataka state. In this programme the data regarding the financial transactions of the SHGs are uploaded at monthly intervals to the Eshakti portal of NABARD for the first of its kind in the country.
National Pension Scheme/Atal Pension Yojana (APY)
Honorable Finance Minister announced to set up a National Social Security Fund (NSSF) for the workers working in the unorganized sector with an initial allocation of Rupees 1000 crores. This fund will support social security scheme for workers in the unorganized sectors. It is meant to encourage eligible persons to save during their productive year for pension benefit in old age.
Dharmadhikari of Shri Kshethra Dharmasthala Dr. D Veerendra Heggade directed SKDRDP a charitable trust promoted by Dr.Heggadeji for the upliftment of rural poor folk to promote and implement the ‘Swavalambhan Scheme’ in the villages of Karnataka, wherever the SKDRDP has presence through its project offices.
Accordingly SKDRDP decided to take up the responsibility of implementing the Swavalambhan Scheme and applied with PFRDA to act as an aggregator. PFRDA identifies intermediaries called “Aggregator” to perform subscriber interface functions under NPS Swavalambhan in respect of their constituent groups. Shree Kshethra Dharmasthala Rural Development Project has been appointed as an aggregator for providing prescribed services under NPS-lite.
What is NPS?
The Pension Fund Regulatory and Development Authority (PFRDA) has introduced the National Pension System-Lite (NPS-Lite) with effect from April 01, 2010. PFRDA has appointed NSDL e-Governance Infrastructure Limited as Central Recordkeeping Agency (CRA) for NPS - Lite. CRA is the first of its kind venture in India which will carry out the functions of Record Keeping, Administration and Customer Service for all subscribers under NPS – Lite (between the age 18 and 60).
Migration to APY
The Central government has introduced new pension scheme called Atal Pension Yojana (APY) which gives advanced facilities to the customers. The government also ordered that migration of NPS pensioners below 40 years of age to APY is mandatory. Unlike NPS, in APY premium is decided on the basis of selection of amount and age of the beneficiary. There is a single month, three month and six month options for contribution in APY. There is a provision to take the amount back whenever we want. However, opening a bank account is must for this. SKDRDP already transferred more than 28,000 NPS accounts to APY, which is most in the state.
Want to Join APY?
If you want to join APY, approach nearest SKDRDP Branch Office, along with KYC Documents, 1 Passport size Photo and duly filled Application Form procured from our office.