2014 Conference

One in three of the world's poorest live in India, the world's second-fastest growing economy, according to a new study. Though several poverty alleviation programmes have been initiated by the central and state governments, reports show that access to credit in rural areas with low interest, on easy terms, is still a matter of serious concern. This is due to the fact that poorer segments of the population have no tangible assets to offer as a security, and hence cannot take advantage of the liberalised system of bank credit. Thus, several measures have been taken by the Governments to address this specific issue in the recent past, with the intent of extending financial assistance to the rural areas and the weaker sections of the society. The poor need financial services for asset creation, protection against risk and even consumption smoothing needs of the household.  For decades, the bulk of the poor were dependent on landlords and local money lenders for their financial requirements - be they religious celebrations, medical costs, school fees, etc. The money lenders and landlords have long had a vice like grip the poor, and their meagre assets are often mortgaged with the landlords/money lenders.