The Centre has roped in private consulting firm MicroSave to optimize utilisation of Community Investment Support Fund (CIF) and enhance the effectiveness and sustainability of organizations working under the Rural Livelihood Mission.
A memorandum of understanding (MoU) was signed by Manoj Kumar Sharma, managing director of MicroSave Consulting and Charanjit Singh, additional secretary in the ministry on July 29.
“Under this partnership, MicroSave Consulting will conduct a detailed analysis and provide strategic interventions to optimize CIF disbursement and utilization by Cluster Level Federations (CLFs). The focus will be on strengthening the financial structures and management systems of CLFs under the Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM),” MicroSave said in a statement. The consulting firm will immediately start assessing the current financial status of CLFs, it said.
The Centre has already disbursed ₹22,296 crore under NRLM since its launch in June 2011, the company said and added that the ultimate objective is to transform selected CLFs into microcredit institutions capable of delivering effective financial services to members of Self-Help Groups (SHGs).
MicroSave will try to identify the challenges faced by SHG members in accessing timely credit and suggest measures for improving products and processes at the CLF level.
“This partnership will lead to more efficient fund allocation and strategic disbursement, thereby strengthening CBOs. Additionally, it will ensure that more SHGs receive loans, bolstering their financial capacity and enhancing operational effectiveness,” MicroSave’s Sharma said.