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Institute of micro-finance and cooperative development.

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CSD Members' Conference Concludes with a Vow to Move Forward with Right Culture and Practice of Microfinance

Microfinance has existed as one of the major contributors to poverty alleviation serving over 4 million members in the seventy seven districts of Nepal. But in recent times the sector has been facing various constraints and challenges that have overshadowed its achievements. Keeping this in mind the Centre for Self-help Development (CSD) organized a one day conference titled 'CSD Members Conference on Current Challenges in Microfinance and Way Forward' on August 12, 2019, in Kathmandu. It was attended by 55 participants comprising of Chairpersons, Executive Chiefs of CSD's institutional and individual members. The program aimed to provide a platform to discuss on the microfinance paradigm within the context of current challenges through sharing of the experiences of the participating members.

The Executive Chief of CSD, Mr. Bechan Giri welcomed the participants with brief introduction of CSD and its activities and highlighted its contributions towards the microfinance sector since its establishment.

Welcoming the participants, the Chairman of CSD, Mr. Shankar Man Shrestha said that the dream of microfinance to alleviate poverty can only be realized if the challenges posed to the microfinance sector could be addressed on time with the joint efforts of all associated with this sector. He further added that MFIs should keep the interest and development of their members at the heart of their operation for the long term sustainability of microfinance. He bemoaned that the MFIs have turned their attention more towards maximizing profit granting their loans to the 'haves' rather than the 'have nots'.

The major attraction of the conference was the Panel Discussion on the 'Current Situation of Microfinance in Nepal' that highlighted the problems and challenges faced by the microfinance sector at the operational level. The panel comprised of seven CEOs from MFIs and Cooperatives representing each province shared their views on the problems and constrains as they experienced while implementing microfinance program by their respective organization.

The panel members were Chief Executive Officer of Sahara Nepal SACCOS Ltd Mr. Mahendra Kumar Giri representing Province 1, Managing Director of Mahuli Samudayik Laghubitta Bittiya Sanstha Ltd. Mr. Roshan Mandar representing Province 2, Chief Executive Officer of Mahila Sahayatra Microfinance Bittiya Sanstha Ltd. Dr. Sumitra Manandhar Gurung representing Province 3, Chief Executive Director of Navaprativa Saving and Credit Cooperative Ltd. Mr. Ram Prasad Kafle representing Province 4, Chief Executive Officer of Upakar Laghubitta Bittiya Sanstha Ltd. Ms. Sharada Kumari Khatri representing Province 5, Senior Manager of Bauddha Gramin Multipurpose Co-operative Ltd. Mr. Bishal KC representing Province 6 and General Manager of Kisan Bahuudeshiya Sahakari Sanstha Ltd. Mr. Dambar Bahadur Shah representing province 7. The panel session was moderated by Mr. Shankar Man Shrestha the Chairman of CSD.

Mr. Mahendra Kumar Giri said that microfinance institutions had focused more on profit maximization and less time to spare for economic and social concerns of the clients. He further added, "To increase efficiency and productivity the staff provided multiple loans to a single client. The case of loan duplication has reached an epidemic point." Mr. Roshan Mandar pointed out that the problems in the microfinance sector are due to the shifting of clients' meetings to monthly meetings. Dr. Sumitra Manandhar Gurung on the other hand emphasized on the training of the staff and clients. Similarly, Mr. Ram Prasad Kafle urged the participants to focus more on productive activities. Ms. Sharada Kumari Khatri emphasized on the need for mechanizing the agricultural sector. She added, "Only if we can mechanize our agriculture industry we will be able to lure our future generation towards agriculture." Mr. Bishal KC urged to update and upgrade directives related to microfinance. Mr. Dambar Bahadur Shah pointed out the need to pay attention to the quality of clients rather than the quantity following of Client Protection Principles.

In one of the sessions, the participants were also explained about the tax system of Nepal and its implications by Chartered Accountant Mr. Sujan Kafle. The participants were also enlightened on the concept of Pro-Poor Sustainable Eco-Village Development by the Executive Director (ED) of the Centre for Rural Technology-Nepal (CRT/N) Mr. Ganesh Ram Shrestha.

Lastly, Mr. Shankar Man Shrestha urged the participants to work for creating a society free of carbon emission, unemployment and poverty as presented by Prof. Mohammud Yunus in his book 'A World of Three Zero'.

The participants have also passed a way forward to upgrade the quality of microfinance.

Way Forward
• Each of the microfinance organization will establish a micro entrepreneurship development and promotion unit in its organization to boost up entrepreneurship among the members.
• The members will be trained on upgrading their business and management skills.
• The principles, cultures and values of microfinance will be strongly followed.
• Credit plus programs such as health education, agriculture will be included along with loan programs.
• Eco-friendly self reliant model village will be created by each participating MFI.

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