City Savers: How the Poor, The DFID and its Partners Are Promoting Financial Services in Urban India
Rutherford, S. & Arora, S.
Publication Date: 1997
Published by: DFID - Department for International Development
Document Type: Paper
This publication is not available online. Please view the ordering information for more details.
What is the current situation and future strategies for bringing credit and savings services to urban poor in India?
Describes existing range of formal and informal financial services for the poor in Indian city slums, including: - rotation savings and credit organisations (ROSCAs)
- self-help savings groups
- moneylenders
- deposit collectors
- do-it-yourself clubs like annual savings clubs
- pawnbroking
Argues that "basic intermediation" services for savings are most in demand. Notes that the poor are willing to pay a high price for basic intermediation services which usually offer a way of turning many small payments into a useful large lump sum
Refers to work done by the city authorities working in partnership with the Delhi-based Urban Poverty Office of the Department For International Development (DFID), in the area of "self-help groups" for women who pool their savings and take loans
Suggests future strategies:- city authorities could enable but not necessarily run financial services
- make more use of NGOs
- work with commercial operators
| 
