On May 18th and 19th Ujjivan hosted a 2-day training on “Innovations in Grameen Microcredit for Poverty Alleviation”. The training was conducted by representatives of the Grameen Trust and Grameen Bank, Bangladesh. The training was well attended with participants from several leading MFIs in India including Grameen Koota, Smile, ESAF and BSS.

The training began with welcome remarks from Mr. Samit Ghosh, CEO- Ujjivan. This was followed by an address by Mr. KR Das, General Manager-RBI who congratulated the MFIs in Karnataka for their excellent work and rapid expansion. He highlighted both the potential and obligation of MFIs to improve the lives of customers at the bottom of the pyramid. He also advised participants to put in place self-regulation measures to ensure that quality is not compromised and growth remains sustainable.

The training sessions reviewed the key features of both the Grameen I Classical System, the Grameen II Generalized System and shared some insights into how and why this change came to be. The most salient changes include simplification of products, customization based on an individual’s cash flow and needs, transition to group commitment vs. stringent group guarantee and the re-integration of default customers. Participants also learnt about a number of other initiatives pursued by Grameen Bank including the Struggling Members Program and partnerships with Grameen Phone, Adidas etc. to provide low cost, high quality services and products to their customers.

The training ended with a panel discussion on challenges facing MFIs in India featuring Mr. Samit Ghosh, CEO Ujjivan; Mr. Suresh Krishna, CEO Grameen Koota; Dr. Kulkarni, Director Grameen Trust of India and representatives from Grameen Bank and Association of Karnataka Microfinance Institutions (AKMI). Some of the key points of discussion included MFIs’ response in the wake of mass default and the absence of savings products, given current regulatory constraints.