Financial Inclusion Reduces Poverty
All SWAPNO women have individual bank accounts and each woman receives BDT 67,500 in cash as wages, BDT 22,500 with interest as mandatory savings at the end of 18 months public works employment tenure.
SWAPNO has catered a host of financial inclusion opportunities for the rural ultra-poor and marginalized women beneficiaries. Financial inclusion works a power tool to catalyze their efforts to move out from poverty trap successfully and sustainably. This starts with cash transfer to beneficiary women as wages of public works employment. A part of the wage is saved in their individual bank account as mandatory savings scheme. Individual bank account opens up multiple avenues for further financial inclusion including empowering them with information for availing different financial services such as loan, deposit schemes, conduct trade transactions etc. Access to finance also works as a launch pad for micro enterprise development. Rotating Savings and Credit Association (ROSCA), a form of Peer Banking, is being practiced in SWAPNO which generates scopes for voluntary savings and engage in IGA activities. The project has also planned to introduce electronic payment to transfer wages and bonus to women. Electronic payment will further solidify financial inclusion through efficient G2P service delivery which eliminates waiting time, risk of carrying hand cash and opportunity of pilferage. Each woman receives BDT 67,500 in cash as wages, BDT 22,500 with interest as mandatory savings at the end of 18 month tenure.
Research findings reveal that financial inclusion plays a pivotal role in reducing poverty. The steady income of SWAPNO women ensures nutrition of their family and education for the children along with opportunity to engage in IGA activities. Women will use the mandatory savings as seed fund to start market driven micro enterprises or agro based self-employment at the end of 18 months employment.