Vision Building-a Sure Way to Facilitate Sustainable institutions for the Poor

7

Rickshaw Bank: an initiative for asset-based

microfinance

P

unique concept was placed among the

overty alleviation, which is one of

best entries in the Citizen Base Investment

the  basic  components  of  the

Competition under the aegis of Ashoka

development index, remains the over-

Innovators for the Public in 2003.

riding priority for all developing countries

including India. Of the world's poor,

every third person is an Indian, and the

In fact, the project is time worthy and

number  is  on  the  increase.  The

based on ground realities. Sarmah

Government of India has adopted

explored rickshaw pullers as one of the

various schemes and programmes for

development partners of CRD a couple

accelerating the rate of economic

of years back. By way of conversation

growth and the eradication of rural

with the rickshaw pullers and after

poverty. A huge fund has also been

knowing their abject socio-economic

made available in this regard. However,

status, Sarmah perceived the scope of

even after 55 years of Independence,

developmental work. Later a survey was

widespread poverty remains an ongoing

conducted in Guwahati city, which

challenge.

reported that almost 90 per cent of the

rickshaw pullers were rural migrants, who

had come to the cities in search of

The primary challenge is to find a path

livelihoods. The study also revealed that

that is not only sustainable but is also

this section required small but regular

socially just and culturally acceptable.

urgent loans.

Dr Pradip Kumar Sarmah, a young

veterinarian who formed the Centre for

Rural Development (CRD), a non-

Moreover, most of these rickshaw pullers

governmental organization (NGO) in

don't have any access to financial

Assam in 1994-`95, has rightly understood

institutions; be it macro or microfinancial

this. With its headquarters in Guwahati

institutions. As a result, they are unable

city, CRD has been able to carve a

to keep their savings in life custody like

niche in the development sector within

post office or banks. A few get credit but

a decade by way of its unique strategic

that too at higher rates of interest. Though

interventions in livelihood enhancement

most of the pullers try to open an account

action programmes. Presently CRD has

with the post office or banks but due to

been working with farmers, fishing

ignorance and lack of an introducer they

communities, dairy farmers, rickshaw

are unable to do so.

pullers, young entrepreneurs and women

with the support of different funding

The Rickshaw Bank Project was launched

agencies including the Rashtriya Gramin

in November 2004 with initial sponsorship

Vikas Nidhi (RGVN), Sir Ratan Tata Trust,

from giant corporates like the Oil and

different corporate houses and different

Natural Gas Commission Limited, Indian

programmes spurred by the central and

Oil Corporation Limited and Hindustan

Assam governments.

Lever Limited. Each corporate sponsored

a 100 rickshaws each. The design of the

The latest venture of CRD is an

eco-trike model was conceptualised

innovative project viz. Rickshaw Bank.

and developed by the Indian Institute

The innovativeness of the project lies in

of Guwahati (IITG). With an average

The innovativeness

its unique style of service delivery for

monthly recovery rate of 95 per cent, the

of the project lies

challenging poverty through `asset-

Rickshaw Bank has enrolled 360 rickshaw

in its unique style

based micro-finance.' This is not at par

pullers till date, out of which two pullers

of service delivery

with  the  conventional  way  of

have already availed ownership of

for challenging

microfinance

where

need-based

rickshaws.

poverty through

financial credit is the central theme.

`asset-based

Instead, CRD provides the needy people

The Bank has been instrumental in

micro-finance'

with an income-generating asset ­ a

increasing the incomes of the pullers. As

Rickshaw on credit, thus promoting micro

the vehicle is lighter, more trips can be

entrepreneurship among urban poor

made. The seat is flatter and the rickshaw

and rural migrants.

is safer because it doesn't tilt while taking

a turn. These features attract more

The Rickshaw Bank, which has been

passengers. Thus the new rickshaws have

recognised even at the international

increased the income of the pullers

level, is the brainchild of Dr Sarmah. His

tremendously. As the rickshaw pullers are