Rural Management Systems Series

Sl.No		Good	Average	Poor	Very poor	Objectively Verifiable Indicators	Remarks
7.	Participation of members in responsibility sharing	All members regularly rotate and share responsibilities. Representatives & cheque signatories changed each year	Cheque signatories & representatives not changed for 2 years. Responsibilities for other tasks rotated among same few members	Cheque signatories & representatives not changed for more than 2 years. Same people take responsibility for other tasks also, or depend on Promoter & Staff	No change in cheque signatories or representatives since inception. High dependence on Promoter and/or Staff even to initiate other tasks that involve responsibilities.	Minutes Book Interactions with members	The age of the SHG should be taken into account in making this assessment.
8.	Rules and Regulations	Exist. Known to all. Followed by all. Understood by all. Penalties enforced. for breaking rules.	Exist. Known to most. Underst od by most. Not fully followed. Penalties enforced in some but not all cases.	Exist. Not many members are aware, since rules are not followed and there are no penalties for violating them.	Only Promoter and Staff say that they exist. Members do not know of them. So the question of following them and enforcing penalties never arises.	A separate Book or the first part of Minutes Book or rules recorded in Minutes as and when framed. Discuss ons with members Led er, to check if fines are collected	Discussions with members are important in making this assessment since many SHGs may not have written down the rules but make them, follow them, and enforce penalties
9.	Savings	SHG fixes a minimum (but not maximum) amount to be saved by each member each month. More than 95%members comply by saving atleast the minimum stipulated amount per month Usually atleast Rs.40/- per member per month	SHG fixes a minimum amount to be saved per member per month. Compliance is around 75%. Some save less than the minimum specified; some do not save each month. Usually atleast Rs.240/- per member per year	All members are aware that they have to save, but no minimum amount fixed. Only around 60% of the members actually save some money each month Average of around Rs.120/- per member per year	All members know about savings, since that is the starting point of the SHG. But less than 60% of the members actually save some money each month. Average of less than Rs.120/- per member per year	Individual Pass Books Savings Ledger	Regularity with which members are making savings can be given more weightage than the amount saved. (Ability to save is present - to a greater or lesser extent - in all members. Capacity to save may have seasonal variations, hence, average savings can be calculated over the year. As members mature, willingness to save may depend on the perceived benefits of saving in the SHG as against saving elsewhere or in non-cash forms)
10.	Sanctioning of Loans	Loan requests are debated in SHG meetings; details are known to all members. All members get a fair chance to borrow. Productive investments are emphasised more. Repayment terms and conditions are properly recorded.	Loan requests are brought to SHG meetings and discussed. All members get a fair chance to borrow. Productive investments are preferred but not encouraged. Repayment terms and conditions are made but not properly recorded.	Loan requests are made to Promoters and Staff. Though brought to the SHG, approval depends more on Promoter/ Staff, who may insist on productive loans even if other needs are critical. Repayment terms and conditions are made but not recorded.	Loan requests are routinely decided by Promoters/Staff. Some members get more favoured than others who are also in need. Members are indifferent to loan purposes of borrowers. Repayment terms are clear neither to the SHG nor to the borrowers.	Minutes Book Loan Ledgers Discussions with members	Age of SHG is also to be considered in this assessment. "Non-productive" needs are often critical and may lead the poor into the clutches of the moneylender. Hence, their approval in the SHG is not bad, but an SHG which only lends for such purposes is indicative of either inactive members or better-off people.
11.	Loan Repayments	More than 95% repayment against demand and in accordance with pre-established terms. Rescheduling of repay-ment time only under extreme circumstances.	75% or more against demand and in accordance with pre-established terms. Repayment schedules changed without adequate reason.	60% to less than 75%. Not much evident effort to improve recovery.	Below 60%. Members are neither aware nor concerned to improve the situation.	Cash Book General Ledger Loan Ledger Minutes Book Individual Pass Books (loan section)
12.	Rotation of Common Fund	More than 100%	75% or more, but less than 100%	50% or more but less than 75%	Less than 50%	Bank Pass Book General Ledger Loan Ledger FD Receipts, etc.
13.	Idle Capital	Nil. All money is loaned or intelligently invested.	Upto 25% of total funds.	Upto 50% of total funds.	More than 50% of total funds.	Bank Pass Book General Ledger Loan Ledger FD Receipts, etc.	To be assessed over a 12-month period & not just based on Pass Book balance on date of review. Short duration FDs need not be regarded as idle capital, as also investment in RDs & other such schemes.
14.	Cash handling	Regularly rotated among all members on a designated basis.	Responsibility only taken by few members and representatives.	Only fixed representatives or Promoters. No rotation.	Promoters or Staff only.	Minutes Book. Discussions with members.
15.	Resource mobilisation	Successful efforts made to mobilise funds through bank linkages, govt. schemes, local mobilisations, etc.	Efforts made to mobilise resources from members & community. No institutional links other than Project.	Only members are approached for small contributions. Project is seen as the only other source for funds.	No efforts made to mobilise resources other than expecting the Project to fulfil all demands.	Minutes Book Cash Book General Ledger L.C.Register Discussions with members	Age of the group must be kept in mind while making this assessment.