September 17, 2015

District Overview

Salyan is one of the five districts within Rapti Zone and lies in Province 6 of Nepal. Khalanga is the district headquarters. The district, with an area of 1,, is divided into 47 VDCs. It has 38,084 households with a total population of 242,444 (Male 115,969 & Female 126,475). Literacy Rate in the district is 65% (women’s literacy rate is 55%).[1] Salyan is connected to Dang district through an all-weather road.

Economic & Financial Landscape

Agriculture, livestock, poultry, cottage industries and trading are the main economic activities of the district. The district is also coming up as a major area for production of ginger and High Value Off Season Vegetabel (HVOV). Its rich forestry resource, 66% of the area is covered by forest, also provides potential for herb collection and processing.

The district is served by 17 different branches of ‘A’ Class Commercial Banks, 3 different branches of ‘B’ class Development Banks, and 1 different branch of ‘C’ Class Finance Company. The population served per branch is 12,508 against the national average of 8,960[2]. This indicates the need to further expand the outreach of financial services and facilities to the unbanked population of the area.

Agriculture is the main income source for majority of households (around 93%). If we analyse the use of credit products in Agriculture, only around 20% had agriculture credit out of which major sources of credit were relatives (68%), followed by women’s group (16%) and cooperatives (7.44%).[3]

To unleash the full potential of the agriculture sector, there is a need to increase access to credit and other financial products in the district.

GESI Issues

Women suffer from gender based discrimination in education, nutrition, social and cultural norms. Women are less likely to be involved in economic activities outside home and are marginalised in major decision making. Caste based discrimination is still prevalent in district.

A key aim of the AFP programme is to improve access to financial services and encourage formal participation in the economic sector for women and deprived segment of the districts. The AFP programme will use the GESI lens throughout the project cycle for addressing these issues.

Sakchyam’s Ongoing Interventions

Value Chain Financing Innovations

  • Wholesale Loan to Dairy Cooperatives, in the Dairy Value Chain has been launched in partnership with NMB Bank in the district.

Delivery Channel Innovations

  • The programme has been able to reach the unbanked population of the district through the launch of BLB Touch Points in partnerships with Everest Bank (two BLB) in the district.
  • So far KMF and NUBL have introduced the use of tablets in their branches in the district.
  • Chhimek Laghubitta Bikash Bank has also established two Digital Points in the district.

Outreach Expansion

  • New branches of FIs have been opened to increase financial access for rural poor via partnerships with Mega Bank (one branch), Nabil Bank (one branch), Laxmi Bank (one branch), KMF (one branch), NWCSC (one branch), VLBS (three branches), and Mahila Sahayatra (one branch).
  • Himalayan Bank will launch one branch under the Local Units Project in the district.

Financial Literacy Initiatives

  • Various programmes on Financial Literacy are being introduced through conventional channels as well as alternate delivery channels such as Tablets and mobile phones. These programmes have been launched in partnership with NUBL, KMF, Mahila Sahayatra, NWCSC, RMDC and VLBS.
  • NUBL is conducting financial literacy campaigns through Centre Meeting Modules and videos in the district
  • RMDC is conducting financial literacy campaigns through various financial literacy initiatives such as school level interactions.

Product Development

  • Migration Loan Product has been designed and implemented in the district in partnership with NWCSC.
  • Business Loan has also been designed and implemented in the district in partnership with Mahila Sahayatra.

Other Support

  • The programme is providing Dedicated ARM support to Machhapuchhre Bank in the district.
[1] National Population Census (2011) [2] Nepal Rastra Bank (2017) [3] National Sample Census of Agriculture (2011-2012)

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