SHILLONG: At a time when difficult topography and sparse population with limited transport and communication infrastructure are proving to be a challenge for financial inclusion and poor access to financial services in rural parts of the state, the Integrated Village Cooperative Societies (IVCS) a community based organisation pioneered by the Meghalaya Co-operative Society and refined by the Meghalaya Basin Management Agency (MBMA) is countering the problem making rapid strides with over 95 IVCS across the state.
The IVCS are designed to legally carry out financial activities and provide thrift, credit and other financial services to people.
One of the many examples of IVCS in the state is the Mawlong Nongtluh IVCS at Ri Bhoi District.
Formed on October 21, 2017, the IVCS has been able to get 382 members presently.
Rilians Syiem, a member of the Managing committee of Mawlong Nongtluh IVCS, said that they needed to increase the number of members and along with other women members, they decided to spread awareness on IVCS from one locality to another.
“At first it was very difficult because people were not willing to accept or to understand about IVCS. But we did not lose hope and continued with our work. Gradually their attitude towards IVCS changed and they have come to register on their own,” she said adding that within 10 months the number of members has increased from 20 to 382 members.
Syiem further added that the IVCS is helping them to save money and they can also take any type of small loans during emergency without having to go throw the hassle of documentation process.
It may be mentioned that the individual has to be a member of the IVCS in order to avail the facilities.
One of the members of the IVCS, Riton Marsing took a loan of Rs. 3000 in June when his crops were attacked by pest.
“By taking loan from the IVCS, I was able to save my crops from the pest and avoid loss,” Marsing said.
“But if I had to take loan from the bank, by the time I get 3000 I would have already spent more than 3000 in travelling up and down to Nongpoh and the crops would have already been destroyed,’’ said Marsing.
Streamlet Mawphniang, a farmer, opened a saving account with the IVCS in the beginning of 2018 and she has been able to save Rs. 100 to Rs. 200 every week at the IVCS which was not possible before because the distance to the bank from her resident is quite far.
For the IVCS to function profitably, they started identifying opportunities where they can invest and earn.
On conducting a survey, the IVCS members found out that there is a lot of constructions going on in their village and other 4-5 neighbouring villages. The villagers had to go till Umden or Nongpoh to get a bag of cement at the amount of Rs. 450 per bag. The members met with some of the cement dealers in Nongpoh and decided to start selling cement at their village. In the month of June, they invested Rs. 40,000 in purchasing cement, renting a shop and started selling cement.
One of the members is kept in-charge of the stall and currently he is paid an honorarium of Rs. 1000 per month. The shop opens 3 hours in the morning and 3 hours in the evening. They sell at a price of Rs. 430 per bag for the members and Rs. 440 for the non-members.
IVCS are entirely local institution that are managed and operated by the people and it is expected that the number of memberships should be at least 300 for the IVCS to generate sufficient capital to sustain its operations.
