sanchayan society profile

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Sanchayan Empowering “aam aadmi” throughFinancial Inclusion & Literacy

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Contents GENESIS OF SANCHAYAN– Introduction– OECD Recognition– Mission & Vision FINANCIAL INCLUSION & LITERACY– What is Financial Inclusion and Literacy?– Situation in India OUR PROGRAMS– Program for the Youth

Privileged youth Underprivileged youth

– Program for the Adults SANCHAYAN MODEL OF FINANCIAL

LITERACY– How is it unique?– Participants

PLAN OF ACTION– Target audience– Target cities and towns

DELIVERABLES RESEARCH & MONITORING FUTURE PLANS FAQs GET INVOLVED– Support workshops for the Youth– Volunteer with us PARTNERS TEAM CONTACT US

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Genesis of Sanchayan

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Genesis of SanchayanA 21 year old Meena has just got a job in a call centre in Gurgaon. She earns Rs. 8,000 per month which is directly credited to her salary account. This is Meena’s first bank account. However, she does not know how to operate it. She is yet to learn how to write a cheque or make a demand draft. This story is not just that of Meena but of a majority of the workforce in India.Youth of our country are sincere, hard-working, focused and aim at becoming successful managers, doctors, lawyers, teachers, scientists, etc. There is one aspect however that can better prepare them for the future and that is “financial education”!

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Copyright Sanchayan SocietySanchayan team members encouraging budding entrepreneurs save for a better future, after a workshop on savings and banking.

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Sanchayan team members explaining basic banking to ‘differently-abled’ youth during a workshop at Ability Unlimited, an NGO in Delhi 6




Yash, a 15 year old student has collected Rs. 1,000 in his piggy bank. He is quite excited as he plans to buy a new pair of shoes. Yash may not understand the significance of spending Rs.1,000 now rather than saving it, but he does know the value of money, considering that it took him more than 3 months to save this amount.In life, you have to make many decisions that will affect your future. An important decision is whether or not you will take your money seriously and be financially responsible. Preparing the next generation for future challenges is a big responsibility. With countries defaulting and facing economic crisis, the complexities of managing finances are out in the open!

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Sunita, a middle-income group housewife, saves an average of Rs.3,000 per month. Sunita does not have a demat account or a trading account. She realises ‘Money not invested is Money lost’ as the prices of everything keeps going up. She is keen to invest her savings. However, she does not have knowledge about the investment opportunities available in the market.Sunita is not an exception but a common example of the average Indian housewife!

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Sanchayan team member imparting financial education to Sanskriti School students 9



International Gateway for Financial Education (IGFE), a network of financial literacy organizations worldwide created by Organization for Economic Cooperation and Development (OECD), has included Sanchayan Society’s financial literacy program as a part of the financial literacy initiatives being undertaken in India. This is along with the financial literacy initiatives being undertaken by Reserve Bank of India (RBI) and Securities and Exchange Board of India (SEBI).The aim of our program is to increase the understanding of personal finance amongst individuals, encourage them to manage money prudently and make them financially aware. Sanchayan has worked with more than 3,000 individuals to make them financially aware and literate.

Recipients of Sanchayan Financial Literacy Program for the Youth 10



Sanchayan team member imparting financial education to Smile Foundation youth11



Sanchayan team member imparting financial education to Farmers as part of World Bank supported National Agriculture Innovation Project (NAIP) 12



International Gateway for Financial Education (IGFE), created by the OECD is a database of the various financial literacy programs being undertaken globally. This database lists the following programs for India:Government programmes in India:•Project Financial Literacy, Reserve Bank of India (RBI), (www.rbi.org.in)•Securities and Exchange Board of India (SEBI), (www.sebi.gov.in)

Civil society programmes in India:•The MoneyMatters Financial Literacy Project, Sanchayan Society (www.SanchayanSociety.org)

Genesis of SanchayanOECD Recognition

Click the link below for further information.

http://www.rbi.org.in/FinancialEducation


Sanchayan SocietyMission and Vision

• MISSION A Financially Literate & Secure India

• VISION Financial Literacy: Disseminate financial literacy to Youth and Adults and

the underprivileged sections. Financial Access: Facilitate the inclusion of the underprivileged section into

the mainstream banking and financial services industry. Financial Security: Spread awareness and knowledge so that the youth and

adults are protected from risks. Financial Advocacy: Work with the government and regulators to provide

basic financial products and services for the youth. Financial Market Deepening: Promote maximum utilization of available

financial products and services among the Indian public. Financial Education: Complement the existing academic curriculum in

schools and colleges by addition of financial literacy workshops to create smart future investors.

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Financial Inclusion & Literacy situation in India

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Financial Inclusion & LiteracyWhat is financial inclusion and literacy?

Financial Inclusion is “The process of ensuring access to appropriate financial products and services needed by vulnerable groups such as weaker sections and low income groups at an affordable cost in a fair and transparent manner by mainstream Institutional players.”

Financial Literacy is “simply the ability to understand finance. It is the process by which people improve their understanding of financial products, services and concepts. This empowers them to make informed choices, avoid pitfalls, know where to go for help and take other actions to improve their financial well-being. It is the sum-total of awareness, knowledge and skills to make informed decisions about savings, investments, borrowings and expenditure.”

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BanksGovernmen

t Campaigns

Educations drives

NGOs and SHGs

Retired bank

officers

Financial Literacy

Basic Banking

No Frills Account

Free financial advice

Micro Credit

Maximum use of

Technology

Inter Bank Infrastructure

Sharing

Financial Inclusion

Financial Inclusion & Literacy Situation in India


37.9

53.160.8

72.9 76.7

Rural Smaller urban Class 1 towns Metros Super metrosProportion of total number of India’s paid workforce 321.4

million

Banking penetration in IndiaOverall banking

penetration - 44.9%

Source: Invest India Incomes and Savings Survey 2007 by IIMS Dataworks18



44.9

1.1 1.75.9

10.7

32.8

1.24

Banks Small savings Mutual funds Thrift and Credit

Postal accounts

other than small savings

Life insurance Direct equity investments

through shares

Chit fund and NBFCs

Perc

enta

ge

Proportion of total number of India’s paid workforce 321.4 million

Retail penetration of various financial services among the paid workforce




141.07

18.725.3 5.9

35.77

105.35

3.54

30.05

Banks Gold Mutual funds Thrift and Credit

Postal Savings Life insurance Equity market Chit fund and NBFCs

Number of current individual retail investors aged 18 - 59 (in millions)




OUR PROGRAMS

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• Workshop 1– Basics of Banking

• Opening bank accounts• Operating bank accounts• Interest rates• Concepts of Cheques,

Demand Drafts, NEFT, RTGS

• Mobile Banking– PAN Card– The importance of savings– Investment Management– Indian Economy– Global Financial Crisis

• Workshop 2– Features of various financial

instruments:• Shares\ Stock Markets• Mutual funds• Insurance & ULIPs• Loans• Credit cards• Fixed Deposits, NSC, KVP• Gold and ETF

– Risks associated with each financial instrument

22Workshops to include innovative games and videos on banking and

investments

Sanchayan ‘FUN’ Financial Literacy Program for Young Adults

Copyright Sanchayan Society23

Sanchayan ‘FUN’ Financial Literacy Program for Young Adults – Program objectives

To be financially literate requires a few simple steps that includes being aware of the power of money and being responsible with money. It includes saving money, spending money, investing money and most importantly making smart all-around decisions. The following are the objectives of the financial literacy program for the youth:

•Encourage the youth to save and invest from an early age•Inculcate the habit of reading newspapers and business magazines •Planning for their college and further professional education•Assisting future investors to understand and analyze financial news & data•Understand the functioning of the Indian economy•Awareness about the global economic crisis and its implications for India


Sanchayan Financial Empowerment Program for underprivileged Youth & Adults

Sanchayan Society shall follow the 3 step ‘SANCHAYAN MODEL OF FINANCIAL EMPOWERMENT’ comprising of Financial Literacy, Financial Inclusion & Access and Financial Empowerment. The target beneficiaries for this program are Youth, Men and Women from privileged and underprivileged backgrounds.


Sanchayan Financial Empowerment Program - Program objectives

In addition to making adults, whether they be men or women, Sanchayan is also facilitating opening of bank accounts, obtaining PAN Cards, Knowledge of Government Schemes, Micro-insurance and Micro-health plans, Connecting low income entrepreneurs to Microfinance companies and Financial Literacy about basic investing in Fixed deposits, NSC, KVP, Mutual Funds, Children’s education plans, etc. For this, we have tied up or are in the process of tie-ing up with various service providers like banks, mutual funds, insurance companies, microfinance institutions, etc. The following are the objectives for the underprivileged adults:•Financial Literacy and Education,•Importance of Saving Money regularly,•Plan & Save for their Children’s Education,•Women Empowerment through household budgeting & financial planning,•Importance of Financial Independence, •Awareness about various financial schemes offered by the Government,•Awareness about different Small Savings and Post-Office schemes,•Create awareness about Microfinance & other capital-raising schemes.•Information Booklet containing relevant information about Bank Savings Schemes, Post-office products, Low-cost Insurance & Mutual Funds, SHGs, Nodal Agencies, Government Departments, NGO contacts.


Sanchayan Model of Financial LiteracyOECD recognized financial literacy program

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Sanchayan Model of Financial LiteracyHow is it different?


The Sanchayan Model of spreading financial literacy and awareness is unique and innovative because it has been designed keeping in mind the unique needs of the Indian youth and adults and the diverse socio-economic background that they come from.It is also one of the 1st programs of its kind in India, and incorporates those elements of personal finance that an Indian would be interested in knowing. The salient features of our programs are:

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Sanchayan Model of Financial LiteracyHow is it different?


Non-profit organizations (NGOs)• 'Arman' DMRC Children Home, Salaam Balak Trust, Tis Hazari,

(www.salaambaalaktrust.com)• Arushi Girls Home, Salaam Balak Trust, Gurgaon• Institution for the Blind, New Delhi• Ability Unlimited (www.abilityunlimited.com)• Smile Foundation of India (www.smilefoundationindia.org)

Other projects:• Farmers Functional Financial Literacy Program - World Bank supported

National Agriculture Innovation Project (NAIP)

Sanchayan Model of Financial LiteracyParticipants


Schools participating in the Sanchayan Progam:• Bhartiya Vidya Bhavan, K.G.Marg,• Fr. Agnel School, Gautam Nagar and Noida• G. D. Goenka Public School, Vasant Kunj• Government Girls Senior Secondary School, East of Kailash • Sanskriti School, Chanakyapuri, New Delhi • Summer Fields School, Greater Kailash• The Banyan Tree School• The Pinnacle School• Seth Anandram Jaipuria School• Laxman Public Schoolmany more schools, colleges and non-profits…

Sanchayan Model of Financial LiteracyParticipants


Everyone wants to be financially responsible. Financial issues affect all aspects of your everyday life such as plans for a family and a home, cost of living etc. To be financially literate requires a few simple steps that includes being aware of the power of money and being responsible with money. It’s important to be financially responsible because your success in life depends on it!

Sanchayan Society aims to disseminate financial literacy to future investors:• School Students• College Students• Underprivileged Youth • Underprivileged Adults• Agricultural and Industrial Labourers• People engaged in un-organized sectors• Physically challenged people• Underprivileged section in rural and urban areas like cooks, maids,

farmers, fruit and vegetable vendors, tea stall owners, etc

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Plan of ActionTarget Audience


In the 1st phase, Sanchayan Society aims to disseminate financial literacy to future investors in the following cities and towns around Delhi/NCR:

• Delhi• Gurgaon• Noida • Greater Noida• Dwarka• Faridabad• Ghaziabad• Rohtak• Jhajjar• Bhiwadi• Mewat• Meerut• Sonepat

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Plan of ActionTarget cities and towns


• Awareness and knowledge of day to day ways of managing money• Sanchayan Program study material and handouts• Gullak (Piggy Bank)• Sanchayan Society brochure • Participation Certificate • Prizes for Participants for Financial Literacy Quiz• Online support and mentoring for participants through Sanchayan

Forum• Knowledge sharing sessions through the E-Learning page on the

website www.SanchayanSociety.org

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Deliverables


• Feedback process through questionnaire• Post workshop monitoring and evaluation• Document the access to financial services pre and post workshop• Online support mechanism for beneficiaries• Research into the level of financial literacy and awareness in India

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Research and Monitoring


Sanchayan Society seeks to spread financial literacy and awareness among the youth and adults through the Sanchayan Financial Empowerment Program. The future goals include:

1.Launch of farmers financial literacy drive in rural areas2.Joint financial literacy drives with public and private banks3.Launch of the Sanchayan Model in other cities and towns across India 4.Development of Teachers and Parents Financial Literacy Program5.Tie ups with NGOs across India for joint program implementation

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FUTURE PLANS


PRESS COVERAGE


What does Sanchayan Society do? Sanchayan Society is a social venture registered under The Societies Registration Act, 1860. Sanchayan Society has been conceptualized to focus exclusively on financial inclusion and literacy for the youth and adults in India. We believe in creating financially literate individuals leading to a financially secure India.What is the area of operations of Sanchayan Society?Sanchayan Society operates across Delhi/NCR as of now, through a network of members and volunteers.Who are the founders of Sanchayan Society?Sanchayan Society was founded in September 2009 by a group of professionals who share the belief that financial literacy for India’s youth can create informed investors and lead to prosperity in the long run. The founders of Sanchayan Society comprise of experienced and passionate individuals from diverse backgrounds and thus realise the importance of financial education even more.How can we participate in the programs?Any institution, whether a school, college, non-profit organization wishing to undertake Sanchayan Society’s programs can get in touch with the coordinating team. The details can be found on our website. 37

FAQs


What is the need for financial inclusion and financial literacy for the Youth?Indian Youth are sincere, hard-working and talented individuals who have a passion to perform and succeed. They are dedicated to becoming successful doctors, lawyers, engineers, teachers, accountants, scientists, etc, however there is one area where they can add value to themselves and that is “financial literacy.” Financial literacy will teach them the art of managing their money and improve their present and future financial well-being so that they can achieve financial independence.Is financial literacy important for all individuals?Financial literacy is imperative for all individuals from varied age groups and backgrounds. It should be provided to everyone so that each one of us has a better chance at managing our personal finances in the future.Does financial literacy mean financial inclusion?Financial inclusion is the delivery of banking and other financial services at affordable costs to vast sections of disadvantaged and low income groups. Financial literacy is the other side of the coin. It complements financial inclusion. Due to lack of financial literacy and basic education, it is very difficult for these sections to read terms and conditions and access various financial services. Financial inclusion and financial literacy should go hand in hand.

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FAQs


• Sanchayan Sahyog would be given credit for supporting Sanchayan Society

• Sanchayan Society would create awareness about partner during program workshops

• Quarterly audit report would be given to partner• Sanchayan Society would showcase partner contributions on:

– Sanchayan Society brochure– Sanchayan Society website– Sanchayan Society online groups– Sanchayan Society presentations

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Sponsor Acknowledgement: ‘Sanchayan Sahyog’


Dr. Anand Sharma - Principal Advisor (Honorary), Sanchayan Society

Dr. Anand Kumar Sharma, formerly Chair Professor Railway Finance, Indian Institute of Management (IIM), Bangalore, currently Professor and Chairperson Finance area at Management Development Institute (MDI), Gurgaon, has been a trainer for the last thirty years. His areas of research interest include infrastructure finance, public procurement, public private partnership and public policy. A large section of the country’s civil services including members of the IAS, IPS, and Finance and Accounts services of central and the state governments have benefited from his deliberations. Dr Sharma, a member of Indian Railway Accounts Service (1981 Batch), has served the ministry in various capacities. He has been the Executive Director, Railway Board (Ministry of Railways), Government of India, Deputy Financial Adviser and Chief Accounts Officer, Western Railways. Dr. Sharma has been a member of Task Force for numerous government initiatives, including the one constituted by Cabinet Secretary on ‘Revision in Norms for Public Procurement’. Here he served as Member secretary.

He was a visiting Scholar at Graduate School of Business (GSB), Stanford University. He received his training in Financial Management on Capital Investment Appraisal and Asset Management at Manchester Business School. He shared his perspectives with management students of IIM, Bangalore through the elective Managing Public Private Partnership. He has led more than eighty management development programs and workshops for participants across nations. Many of these were conducted in association and consultation with the World Bank.

Dr. Sharma started his teaching career at Shri Ram College of Commerce, Delhi University in 1975. He earned his Ph.D. in Finance from Jamnalal Bajaj Institute of Management Studies, University of Bombay. Prior to this he completed his Masters from Delhi School of Economics (academic scholarship recipient) and L.L.B from University of Delhi. 40

Sanchayan Society Team


Sanjeev Vasudev (Mentor)Sanjeev moved to the development sector after a career in the private sector spanning two decades in the fields of finance, communications, and Internet technologies. Since 2000 Sanjeev has been working in the development sector, first with a multi-lateral organisation and now manages a development consulting company and an NGO focused on the cause of agriculture. Beyond this, he is on the Board of an NGO doing exemplary work in the field of woman and child development in areas of health and education. A brief profile of these organizations is given below:STADD Development Consulting Pvt. Ltd.: STADD works in the South Asia region in areas of rural livelihoods, natural resource management and technologies. Over the years it has built a strong track record of assignments handled for institutions such as IFAD, CFC, UNCTAD, UNDP-GEF, and ICIMOD, to name a few. Please view www.stadd.com to know more.SocietySTADD: This not-for-profit institution is working to further development causes such as agriculture, water, and rural infrastructure. Among one of the major initiatives supported by SocietySTADD is the Professional Alliance for Conservation Agriculture (PACA) that is advocating the cause of Conservation Agriculture. Please view www.conserveagri.org to know more.SSMI: Swami Sivanand Memorial Institute (SSMI) is a four-decade old institution involved in various programs of the government such as ICDS (Jehangirpuri - 16,000 children), Mid-day Meal Scheme (Chandigarh - 25,000 children), Gender Resource Centre (West Delhi - 8 GRCs), Eye and Dental Clinic for the under-privileged, and an aided school (Balwadi to Xth standard - 1,000 children). Beyond these regular activities, SSMI is involved in matters of policy working closely with the government. www.ssmi.in 41



Chidambara Sagar (Founder, Sanchayan Society)Chidambara is a trainer for outreach programs. She planned and managed the first ever in India ‘The Dream Museum Project’, launched by the Devi Art Foundation in collaboration with Asia Art Archive, Hong Kong. For Sanskriti Foundation, she conceptualized, designed and delivered two day residential workshop for children on International Museum Day. She interacted with students of Mirambika school for Geddes Fellowship. Chidambara has been actively working to create awareness around various social and cultural issues. She was instrumental in the organisation of SOIMA’09, a month long international training program for adults. Currently, she is working with Sagar NGO and Archaeological Survey of India as a supervisor and consultant-trainer for training art-historians, museologists and conservators. Chidambara holds a masters’ in History of Art from National Museum Institute and is a Sanskrit graduate from St. Stephens College, University of Delhi.

Avik Kedia (Founder, Sanchayan Society) Avik has more than 4 years of corporate experience having worked with some of the leading international audit, tax and advisory firms. During his experience working with these global consultancy firms, Avik has been involved in the audits of leading Indian corporate groups like DLF, Ranbaxy, Bharti Airtel and many other large corporates. Avik has been investing in the capital markets since his college days and has accumulated significant practical experience in investment concepts and theories. Avik’s interests range from tracking global markets to reading business books and sharing first-hand investing knowledge with young students. Avik is a chartered accountant and a commerce graduate from Hindu College, University of Delhi. 42



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www.SanchayanSociety.org

GET INVOLVED


Contact DetailsSanchayan Society

Registered Address: H- 9, Akash Bharti Apartments, 24 – I.P. Extension, Patparganj, Delhi – 110092

www.SanchayanSociety.org

• Mr. Avik [email protected]+91 95602 28484

• Ms. Chidambara [email protected]+91 98105 72277

• Prof. Anand SharmaPrincipal Advisor (Honorary)[email protected]+91 9560631667

•Sanjeev VasudevMentor [email protected]+91 9810112773

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