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DRAFT /CONFIDENTIAL 310 PARLIAMENT OF INDIA RAJYA SABHA DEPARTMENT-RELATED PARLIAMENTARY STANDING COMMITTEE ON HUMAN RESOURCE DEVELOPMENT THREE HUNDRED AND TENTH REPORT ON THE FUNCTIONING OF RASHTRIYA MAHILA KOSH (Presented to the Rajya Sabha on 11th February, 2019) (Laid on the Table of Lok Sabha on 11th February, 2019) Rajya Sabha Secretariat, New Delhi February, 2019/ , 1940 (Saka) PARLIAMENT OF INDIA RAJYA SABHA DEPARTMENT-RELATED PARLIAMENTARY STANDING COMMITTEE ON HUMAN RESOURCE DEVELOPMENT THREE HUNDRED AND TENTH REPORT ON THE FUNCTIONING OF RASHTRIYA MAHILA KOSH (Presented to the Rajya Sabha on 11th February, 2019) (Laid on the Table of Lok Sabha on 11th February, 2019) Rajya Sabha Secretariat, New Delhi February, 2019/ Magh , 1940 (Saka) C O N T E N T S PAGES 1. COMPOSITION OF THE COMMITTEE …........................................................... 2. PREFACE.......................................................................................................... 3. ACRONYMS-------------------------------------------------------------------------------- 4. *LIST OF ABBREVIATIONS.................................................................................................... 5. REPORT.........................................................................................…............................ 5. OBSERVATIONS/RECOMMENDATIONS OF THE COMMITTEE - AT A GLANCE…. 6. MINUTES............................................................................................................................. 7. * ANNEXTURES……………………………………………………………………………… DEPARTMENT-RELATED PARLIAMENTARY STANDING COMMITTEE ON HUMAN RESOURCE DEVELOPMENT (Constituted w.e.f. 1st September, 2018) 1. Dr. Satyanarayan Jatiya Chairman RAJYA SABHA 2. Shri Partap Singh Bajwa 3. Smt. Vandana Chavan 4. Prof. Jogen Chowdhury 5. Prof. M.V. Rajeev Gowda 6. Shri Anubhav Mohanty 7. Shri Vishambhar Prasad Nishad 8. Dr. Sasikala Pushpa Ramaswamy 9. Dr. Vinay P. Sahasrabuddhe 10. Shri Gopal Narayan Singh LOK SABHA 11. Shrimati Santosh Ahlawat 12. Shri Bijoy Chandra Barman 13. Shri Nihal Chand Chauhan 14. Ms Bhawana Gawali (Patil) 15. Shri Faggan Singh Kulaste 16. Shrimati Geetha Kothapalli 17. Shri Bhairon Prasad Mishra 18. Shri Ramachandran Mullappally 19. Shri Hari Om Pandey 20. Dr. Bhagirath Prasad 21. Shri N.K. Premachandran 22. Shri Krishnan Narayanaswamy Ramachandran 23. Shri Sumedhanand Saraswati 24. * Shri V. S. Ugrappa 25. Dr. Nepal Singh 26. Dr. Prabhas Kumar Singh 27. Shri Satya Pal Singh 28. Shrimati Neelam Sonker 29. Shri P.R. Sundaram 30. Shrimati P.K. Sreemathi Teacher 31. Shrimati Tabassum Begum * Nominated to the Committee w.e.f. 17th January, 2019. SECRETARIAT Shri K.P. Singh, Joint Secretary Shri Rajiva Srivastava, Director Shri Vinay Shankar Singh, Additional Director Smt Himanshi Arya, Under Secretary Shri K. Sudhir Kumar, Research Officer Shri Mohit Misra, Committee Officer Smt. Suman Khurana, Committee Officer PREFACE I, the Chairman of the Department-related Parliamentary Standing Committee on Human Resource Development, having been authorised by the Committee, present this Three Hundred and Tenth Report of the Committee on the subject The Functioning of Rashtriya Mahila Kosh. 2. The Committee held a meeting on 25th January, 2019 with the Executive Director and other officials of Rashtriya Mahila Kosh on the functioning of Rashtriya Mahila Kosh and steps needed to be taken to strengthen it. 3. While drafting the Report, the Committee relied on the following documents: (i) status note on functioning of Rashtriya Mahila Kosh received from the Ministry of Women and Child Development; (ii) comments/clarifications given by the Ministry on the questionnaire on the functioning of Rashtriya Mahila Kosh; and (iii) Comparison of important aspects of Mudra Scheme with Rashtriya Mahila Kosh. 4. The Committee considered the Draft Report and adopted the same in its meeting held on 8th February, 2019. 5. For facility of the reference, observations and recommendations of the Committee have been printed in bold letters at the end of Report. NEW DELHI DR. SATYANARAYAN JATIYA 8th February, 2019. Chairman Department-related Parliamentary Magha 19, 1940 (Saka) Standing Committee on Human Resource Development ACRONYMS 1. RMK : Rashtriya Mahila Kosh. 2. SHGs : Self Help Groups 3. JLGs : Joint Liability Groups 4. IMOs : Intermediary Micro-Organisations 5. DBT : Direct Benefit Transfer 6. NIPCCD : National Institute of Public Cooperation and Child Development 7. PMMY : Pradhan Mantri Mudra Yojana 8. MCLR : Marginal Cost Lending Rate 9. ISAP ; Indian Society for Agribusiness Professionals 10. DoPT : Department of Personal and Training REPORT Overview The Government of India set up "Rashtriya Mahila Kosh" (RMK) a National Credit Fund for Women on 30th March, 1993 as an apex funding organization under the Department of Women and Child Development (now Ministry) exclusively for the women based on the recommendations made by National Commission for Self-employed Women in the Informal Sector. The Commission in its report titled "SHRAM SHAKTI" recommended innovations in the credit mechanism to assist poor women who were unfamiliar with the complexities of institutional finance and suggested setting up of an exclusive credit body for poor and self-employed women in recognition of their socio-economic realities. 2. The budgetary support received from the Government is for Corpus Fund which is utilized for its lending purposes by RMK. At present the total corpus fund of RMK is Rs. 284 crores as on 31.03.2018, which includes principal corpus of Rs. 100 crores received from GOI and an equivalent amount being reserves & surpluses generated from internal resources. 3. RMK provides micro-credit to women Self-help Groups (SHGs) / Joint Liability Groups (JLGs) including women micro-entrepreneurs in both rural and urban areas through Intermediary Micro-financing Organisations (IMOs) like NGOs. Apart from micro credit, it also builds the capacities of SHGs women-members and the partner organizations by imparting trainings in financial management, project management, enterprise development, skill up-gradation, exposure visits, etc. Marketing assistance to the women beneficiaries is also arranged. RMK aims at holistic development of women through micro-finance. The IMOs are advised to dovetail their micro- finance programmes with activities like imparting financial literacy, education, awareness on health, hygiene, nutrition, HIV/ AIDS, legal rights etc. 4. The Ministry of Women and Child Development in its submission in the meeting held with the Committee on 22nd October, 2018 outlined the key objectives of RMK as follows: a) to promote / undertake activities for the promotion of or to provide credit as an instrument of socio-economic change and development through the provision of a package of financial and social development services for the development of women; b) to promote research, study, documentation and analysis of credit and its management; and c) to promote replication and dissemination of successful credit extension and management methodologies. 5. The Ministry also informed the Committee that credit is provided to the poor women beneficiaries under Self Help Group (SHG) model through Intermediary Micro Financing Organizations (IMOs) working at grass root level such as NGOs, Voluntary Organizations, Cooperative Societies, State Government Agencies like Dairy Federations, etc., by following friendly and simple procedure for various livelihood and income generation activities. 6. The Ministry further informed that apart from giving micro-credit, RMK also strengthen the capabilities of SHGs / women members and partner organizations through trainings in financial management including risk and project management, enterprise development and assistance in marketing to bring about holistic development. 7. Keeping in view the social importance of the Rashtriya Mahila Kosh, the Committee decided to take up the working of the Kosh for detailed examination. Thereafter, the Committee held a meeting with the Executive Director, Rashtriya Mahila Kosh on 25th January, 2019. The major issues discussed and the submissions made in the meeting have been dealt with in succeeding paragraphs. 8. The Ministry vide its status note furnished on 25th January, 2019 informed the Committee about the State/UT-wise details of Cumulative Sanctions and Disbursements and Number of Beneficiaries since inception till 18.01.2019 as following: (Amount in Rs. lakh) S. State/UT Name Sanction Disbursement Beneficiaries No. 1 Andaman Nicobar 40.00 40.00 667 2 Andhra Pradesh 8,168.41 7,168.48 197839 3 Arunanchal Pradesh 10.00 5.00 100 4 Assam 535.90 503.90 7005 5 Bihar 667.25 508.83 17369 6 Chhatisgarh 14.50 8.50 370 7 Delhi 954.72 839.62 7742 8 Gujarat 223.50 193.50 7173 9 Haryana 350.01 324.16 4502 10 Himachal Pradesh 676.48 655.63 12925 11 Jammu & Kashmir 182.00 107.00 1986 12 Jharkhand 250.43 190.20 2428 13 Karnataka 1,169.25 619.00 19415 14 Kerala 866.22 682.52 34257 15 Madhya Pradesh 2,347.30 2042.40 22416 16 Maharashtra 1,746.90 1,477.55 36135 17 Manipur 284.05 216.04 8421 18 Mizoram 4.00 2.00 70 19 Nagaland 74.00 45.50 859 20 Odisha 2,334.45 2,203.55 39272 21 Pondicherry 51.00 16.00 300 22 Punjab 141.00 37.50 500 23 Rajasthan 2,016.90 1,872.74 30470 24 Tamil Nadu 8,228.84 6,655.77 170209 25 Telangana 1,712.40 1,442.70 32553 26 Uttar Pradesh 1,002.25 675.12 26939 27 Uttarakhand 419.24 389.89 3148 28 West Bengal 2,681.29 2,189.29 55283 Total 37,152.29 31,112.38 7,40353 9. The Committee was further