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Gramin Seva Business Proposal

Gaps identified in the working methodology of banks in India on grass root level and the penetration level of Banking and Financial Services in rural India are quintessential proofs of lack of a robust liasioning service that can bridge this GAP. 70.5% of population in India lives in rural areas, with increase in population the growth opportunities for economic activity increases day by day. Further with lack of literacy levels and awareness about banking facilities and government schemes villagers are quite often duped by fraudulent schemes of local money lender. Moneylenders (Sahukars) are exploiting rural people and earn huge interest rates from them. Although the government provides them agricultural loan at lower interest rate, they are not aware of it and moneylenders take huge advantage of this ignorance. Due to lack of proper communication channels, rural India is not aware of benefits being announced for them by Government. Also, the money being credited to them through government schemes such as NREGA, Indira Awas Yojana (IAY) etc. does not reach to them directly because they are not educated enough to go to the bank and encash the money. Indian Government is also making efforts for financial inclusion of weaker sections of the society and the most important step towards this would be increase access to financial institutions and instruments. Out of 203 million households in the country, more than 45 million have no access to credit. Most of such households in the country are unbanked for one simple reason that they are poor. The Indian banking system was never designed to serve in rural areas. We generally have urban-focused banks. The banking model in India is not equipped to deal with highly customized rural needs. Therefore, the present urban banking models do not work in rural areas. In urban banks the products are all bank-centric, whereas in rural areas you need customer-centric, tailor-made products. For that one needs to hire local people and needs to understand local needs. Also, the products of a bank are complex to the customer and more so to the rural consumer. Gramin Seva which mainly focuses on providing educating rural population and equipping them with relevant knowledge about loans and other money lending process. The main focus areas are: Gramin Seva will act as a intermediary service between Financial institution and Local people to provide all banking services on their door step with assurance of no fraud Educating them in regards to their rights related to government based schemes towards and easy agricultural loans Trainings and workshops on basic banking like deposit, withdrawal, use of cheque book, demand drafts, krishi loans( Agricultural Loans), debit cards, interest rate offered by the bank, mortgage services and collateral service.