ICIC BANK

1. What is ICICI Bank's innovation?

    

ICIC bank is for low income people, it provides to convert the poor people as their customers, the company focuses on the poor people as the poor people is their consumer of their company.

2. What is special about RBI's pilot project with NABARD in 1991?     

    

The project was done because in the year of 1981 TBI found that 36% of the rural area was still utilized.

3. According to Mahajan, why are the transaction costs of savings in formal institutions as high as 10% for the rural poor?

    

The small average size of transactions and distance of the branches from the village, even that institution that provide financial services to the poor are limited.

4. What are some of the problems of MFIs in India?

    

They have small loans which may become scalable and they also focus on access to credit.

5. What are the two innovative BOP models of the ICICI?

    

First is the direct access, bank-led model which was catalyzed by the        merger with the rural banking institution. Second is the indirect channel     partnership model leverages the relationships, knowledge, and rural network of         organization in the field to avoid costly brick-and-mortar expansion process.

6. What is the connection between Grameen Bank and Bank of Madura?

    

Both lend loans to the low income people. Bank of Mandura wants to increase their profit on rural areas and same to Grameen Bank.

7. Describe ICICI's three-tier system. Discuss why it is three-tiered.

    

ICICI developed a simple three-tier system. Under this system, the highest level was a bank employee called a project manager. The project manager oversaw the activities of six coordinators, approved loan applications for the area manager, and helped with the development of the SHGs. The coordinator was herself an SHG member who had a contractual relationship with the bank. She was overlooking the actions of six promoters.

8. What are the 3 essential steps in the SHG process? Comment on why each step is necessary. 

    

The process has three essential steps:

1. Learn to save.

2. Learn to lend what you have saved.

3. Learn to borrow responsibly.

9. Discuss the NABARD checklist for SHG's. Comment on why each item on the checklist is necessary.

    

The NABARD journal published for bank managers described the steps to successfully deal with the SHGs from the institution’s perspective. An assessment by the bank is encouraged. NABARD has assembled several checklists that correlate with high repayment rates and characteristics of the SHG.

10. What is the impact of micro lending in a household according to a NABARD study?

     

To uplift the lives of the low income people, it also helps the poor people to achieve their future.

11. Discuss the possible implementation of a smart-card based payment system? Would it work? Why?

     

ICICI is also researching the possibility of implementing a smart-card-based payment system to eliminate the costs associated with cash handling.

12. Discuss the quote: "Banking with the poor has undergone a paradigm shift. It is no longer viewed as a mere social obligation. It is financially viable as well". Do you think this quote can be applied in the Philippines? Discuss.

     

Yes, ICIC utilized the strong growth in financial aspect. The Philippines can grow more if it’s implemented in the country , a rural savings that also acts as a good way.