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Four Institutional Members of CSD Accredited by International Smart Campaign, Client Protection Certification

Four institutional members of the Centre for Self-help Development (CSD) have been accredited by the international “Smart Campaign, Client Protection Certification.” The awardees are the Sahara Nepal SACCOS, Charpane-3, Jhapa, the Unique Nepal Laghubitta Bittiya Sanstha Ltd, Kohalpur, Banke, the Kisan Bahuuddehiya Sahakari Sanstha Ltd, Lamki, Kailali, and the Chhimek Laghubitta Bittiya Sanstha Ltd, Baneshwor, Kathmandu.

Client Protection Certification is an international certificate provided on the basis of an independent and third-party evaluation. The Smart Campaign, Client Protection Certification is a highly valued mark of commitment by an organization. Achieving the Smart Campaign, client protection certification allows financial services providers to improve their systems, practices, and services by aligning to a set of standardized and globally accepted standards and keeping clients at the center of the decision-making process. All financial service providers engaged in financial inclusion, irrespective of their legal status and size, and are interested in demonstrating their commitment to client protection. The certification agency reviews the financial service provider’s policies, procedures, management systems, training, and marketing practices against the seven areas of client protection. The new certification includes a process of recognizing financial institutions based on their performance and advancement towards implementing favorable client protection policies and practices.

In this regard, the experts participated in the webinar discussion on the topic  “Client Protection Principles and Practices in Nepal” organized by the Centre for Self-help Development on August 17, 2021 (Bhadra 1, 2078) opined that microfinance institutions should be responsible for protecting the rights and interests of their members by focusing their services to poor and disadvantaged group.

Addressing the webinar, the Chairman of CSD Mr. Shankar Man Shrestha said, “MFIs should focus on the quality loans and the loans should be provided only on the requirements and capacity of the members. Now a bad practice of multiple financing is practicing to recover delinquency. This is a matter of serious concern. It does not good to the member. Improper disbursement of loans will affect the organizations as well as the members. If the member became strong than the organization will become strong and only strong organization can provide good services. Now, microfinance has become more profit-oriented than it should have been. Livelihood improvement of the members is in less priority.” Shrestha added.

The moderator of the webinar Mr. Ram Bahadur Yadav, Chief Executive Officer of the National Microfinance Laghubitta Bittiya Sanstha Ltd, said that it is unethical and unfair lending against the standards of microfinance.

One of the Speakers of the webinar, Mr. Mahendra Kumar Giri, Chief Executive Officer of the Sahara Nepal Saccos, opined that microfinance should focus on the health, education and other social security of the members. He expresses his views to provide share to the members of the MFIs even-after changing the existing provisions of microfinance in Nepal.

Another speaker of the program, Mr. Chola Raj Sharma Joshi, Chief Executive Officer of the Chhimek Laghubitta Bittiya Sanstha Ltd., said that it would be difficult to raise the status of microfinance institutions unless providing them the skill and knowledge of enterprise and entrepreneurship development or diversification of skills.

The webinar was attended by 150 officials of the MFIs, Cooperatives and banking organizations.

 

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