9

Theme- Micro-Finance & Technology

Computer Munshi: A Self-Sustaining

Mechanism to Manage SHG Accounts & MIS

leverage finances and developing

Background

linkages for economic services are the

broad strategies followed by 25 project

A

Computer Munshi is just that ­ a

teams, each operating in a district or a

person who provides accounting

few blocks within or across districts.

services by using a computer. This by

itself may not sound like a great

As of March 31, 2005, PRADAN has

achievement because offices all over

organised nearly 6,000 SHGs across

now use computers to maintain their

seven states, with a total membership

accounts. But when we see thousands

of about 80,000 rural poor women.

of self-help groups (SHGs) comprising

These SHG s have cumulatively

poor, illiterate women in rural, often

generated a savings of nearly Rs 7.5

remote and inaccessible villages sans

crore and have mobilised loans worth

basic infrastructure, use computers on

about Rs 25 crore, out of which Rs 8.5

a routine basis to conduct business, it is

crore is from banks.

something to take a second look at.

Ninety-five per cent of PRADAN's 6,000

Formation of SHGs is an integral part of

SHGs are today covered under the

PRADAN's

livelihood-promotion

computerised accounts system, run and

strategy. The following step-by-step

operated by local youth-entrepreneurs

methodology has been developed by

­ men and women -- called Computer

PRADAN over time for livelihoods

Munshis. They are trained and equipped

promotion:

by PRADAN to set up the Computer

PRADAN's mission

is to enhance

Munshi business and need close hand-

1.

Promoting SHGs as Mutual Aid

livelihoods on a

holding and incubation in the first

Associations

large scale to

couple of years before they can

empower the rural

actually operate independently. This is

2.

Developing SHGs as Financial

poor.

because the business is new and

Intermediaries ­setting up linkages

untested, both for the buyers and sellers

with banks and other financial

and the facilitators. For PRADAN it

institutions

means working very closely at different

3.

Livelihood Planning with families

levels with the Computer Munshis in

and groups

training and building their technical and

4.

Interventions in various livelihood

entrepreneurial skills; at the level of the

sectors

SHGs to orient them towards the new

5.

Leveraging credit on a large scale

system in purchasing information from

from commercial banks and other

the Computer Munshi and not depend

financial institutions

on PRADAN; and at the interface of the

buyer and the seller in putting in place

6.

Creation of different producer

systems for data flow between the two

organisations

to

enable

entities, and establishing a business

sustainable access to markets

model.

The above description depicts a clear

The rationale for a Computer Munshi

thrust on livelihoods. This focus on

livelihoods entails that PRADAN would

PRADAN's mission is to enhance

like its major energies to flow towards

livelihoods on a large scale to empower

putting in places programmes and

the rural poor. In order to achieve this,

systems for livelihoods rather than

PRADAN has been working in some of

anything else. Having strong SHGs is a

the very poor states of North India

very necessary condition for livelihoods

through decentralised projects for over

but not sufficient.  Bringing in new

20 years. Identifying and organising

technologies, training, developing

poor women into SHGs, building their

linkages with the market and building

capabilities to enhance incomes either

appropriate linkage organisations also

through better management of natural

require investment in adequate time

resources or by taking up home-based

and energy. Therefore it is important

enterprises, linking them to the

that the SHGs become independent of

government's  poverty-alleviation

PRADAN within a reasonable time-

programmes and commercial banks to

frame so that the field officers are free