Three Days Virtual Training on Financial Management of Cluster Level Federation and Village Organization Formed Under Day-NRLM

Port Blair, July 27: Deendayal Antyodaya Yojana: National Rural Livelihood Mission (DAY-NRLM) is being implemented in this UT since 2016-17 with the formation of the Self Help Groups and its federations, namely Village Organization and Cluster/Block Level Federation. Implementation of the said scheme aims to organize the rural poor women in SHGs, and its federations to provide them social, financial and technical assistance for better livelihood. The SHGs are federated into Village Organization (Primary Level Federation) at the village level, Cluster Level Federation at sub-block and Block/District Level Federations at higher levels and are supported to become self-sufficient and community-managed institutions over time.

Since its inception, 997 SHGs and 72 Village Organization have been formed under DAY-NRLM. In the last Financial Year – 2020-21, the Andaman and Nicobar Islands Rural Livelihood Mission (ANIRLM), with the support and guidance of the National Institute of Rural Development and Panchayati Raj (NIRDPR), Hyderabad has formed 05 Cluster/Block Level Federations in C.D.BlockProthrapur, Ferrargunj, Rangat, Mayabunder and Diglipur under DAY-NRLM.

The State Rural Livelihood Mission (SRLM) releases the Mission funds to strengthen SHGs and their Federations. After completing the gestation period of three months, SHGs are eligible for Revolving Fund @ Rs. 15,000/- per SHG and after completion of six months are eligible for Community Investment Fund (CIF) up to Rs.1,10,000/- per SHG on Loan Basis through their concerned Federation. The Federations acts as a Financing Institution for the SHGs which provide loan to the SHGs on submission of Micro Credit Plan (MCP) wherein the credit needs of SHG members is prioritized. The Federations received various funds such as Start-up fund, Community Investment Fund (CIF), Vulnerability Reduction Fund (VRF), Livelihood Fund (LF) from SRLM and Savings, Membership Fee, Interest from Loan given to SHG, etc. from the member SHGs. There is always a need for proper management and accounting of fund flow and utilization in the federations of SHGs.

Therefore, the Andaman and Nicobar Islands Rural Livelihood Mission (ANIRLM) attached to Directorate of RD, PRIs and ULBs, Andaman and Nicobar Administration, Port Blair in collaboration with National Mission Management Unit, New Delhi and National Institute of Rural Development and Panchayati Raj, Hyderabad has organized “Three days virtual training on Financial Management of Cluster Level Federation and Village Organization under DAY-NRLM” w.e.f. 23.07.2021 to 25.07.2021. The said training was imparted by Shri. Debashis Mandal, National Resource Person, attached to NIRDPR, Hyderabad and was attended by the dedicated staff attached with State Mission Management Unit (SMMU) and Block Mission Management Units (BMMU) of C.D Block Prothrapur, Ferrargunj, Little Andaman, Rangat, Mayabunder, Diglipur and Campbell Bay under ANIRLM.

During the training, detailed discussion was done, and information was given about Basic accounting principles and practices of Federations; Institutional structure and functions, To frame financial policies in CLFs; Credit Management; Fund Management; Financial Control; Financial Management Functions in CLF and Financial Management Roles of different players in SHG Networks and Methods to train the CLF leaders and Staff.

The ANIRLM is planning for the training of Bookkeepers of the Village Organizations and Accountants of CLFs in the coming month to have a strong and transparent Financial Management System of Federations of SHGs, leading to effective implementation of DAY-NRLM in this UT.  

Leave a Reply

Your email address will not be published. Required fields are marked *