Creating an institutional infrastructure for small loansIt is estimated that over sixty lakh people are engaged in the informal sector. They sell vegetables door to door or unbranded textiles. A large number of them operate small eateries from their houses. They manage to make around Rs.300 or Rs.400 on a normal day. However, post-COVID, they are mostly in distress, as the country is under lockdown in many places.
There is absolutely no clarity as to how these people can get the Rs.10,000 loan announced by the Union Finance Minister. It is here that the concept of self-help groups can make a big difference. Given the fact that these self-help groups have to elect their own office-bearers and have an institutional framework, it is wise to organize all local traders under one single umbrella and then the local co-operative urban cooperative banks can take over. The rules have now changed and the RBI has powers to control such banks.
When there is an institutional framework, it becomes that much easy to get things done.
This is my entry for the a thread a day challenge contest