Impact Of Micro Finance On Women’s Empowerment In Andhra Pradesh, India

Abstract

This study is a part of the doctoral work of the author based on over 25 years of banking experience focused on Micro Finance (MF) and its impact on women’s empowerment. The study is aimed at bringing out options for revolutionary changes currently required for sustaining the troubled MF system in India particularly in Andhra Pradesh (AP). A sample of 900 people selected from three regions viz, East Godavari in Coastal region, Nalgonda in Telangana region and Chittoor in Rayalseema regions, in AP, India. The study comes out with useful conclusions and recommendations in terms of Govt. policy measures, better legislation, stricter controls, a suitable legal framework, with a concerted approach. This would help MF system to come out of the existing mess and move forward to create a sustainable system of MF by which the economically resource poor people particularly women can attain financial liberation. For continuous and further strengthening of the scheme it is recommended that MF beneficiaries to produce income generating activities, standard products with quality so that Govt. can help them by making tie ups market links and organizational links for their products marketing. Further, for improving the skill developments of the members, capacity building programmes can be given by bank’s training institutes and organization like National Institute of Rural Development (NIRD). The survey also comes out further with suggestions for overcoming high interest rates, social issues and middlemen, in a bottom up feedback system whereby the beneficiary drives the functioning of MF system. This could be well integrated from banks, through Micro Finance Institutes (MFI)/Non Government Organizations (NGOs) down to Self Help Groups (SHG) by involving the post office net work for delivery. In the ultimate analysis the study calls for complete takeover of the MF system by the Govt. with progressive elimination of private hands by bringing suitable legislation, controls , education, and feedback mechanisms so that the MF system perpetually vibrates like a self supporting mechanism under the umbrella of the Govt.

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