Rickshaw Bank

Centre for Rural Development

Presentation to the Members of the Roundtable on State of the Sector Report 2009 at Bankers Institute of Rural Development (BIRD), Lucknow Date : 29th August, 2009

Centre for Rural Development

WELCOME TO CENTRE FOR RURAL DEVELOPMENT (CRD)

Centre for Rural Development

CRD IS AN NGO • Registered under the Societies Registration Act of 1860 (Section XXI) in 1994-95 • Registered under the Income Tax Act Section 12AA & 80 G • Registered under the Foreign Contribution Regulation Act of 1976

Centre for Rural Development

ACTIVITIES • • • • • • • • • •

Rickshaw Bank VET-AID-CENTRE (VACs) District Nodal Agency, ARIASP SHGs Management Rural Marketing Networking & Strengthening The Voluntary Sector Imparting Training Food Processing Centre Backyard Poultry Farming Information Documentation Centre

Centre for Rural Development

MISSION To ensure sustainable livelihood for the poor families by using local resources and skill up gradation with community participation

Centre for Rural Development Identified Problem • Rickshaw Drivers - vulnerable and socially disadvantaged community (harassed, HIV-AIDS, exploited) • No access to formal finance: 95 % hire rickshaw on high daily rental fee • Below poverty line and without any social security • 46% are illiterate • 8 million such rickshaw drivers in India • 5 dependence as an average

Solutions The Rickshaw Bank provides : • a newly designed rickshaw payable through a minimal daily installment • eventual ownership of the rickshaw, • insurance, uniform, licenses, a photo ID • training, health care, cooking gas etc.

Centre for Rural Development

Solution: Design Innovation

• • • • • •

Rickshaw originally designed by IIT, Guwahati Aero-dynamically designed thus lighter More spacious More attractive to clients Comfortable for all age groups Longer functioning life

Centre for Rural Development One Window Solution Provide for Drivers:

• • •

•

• • • •

Income Potential savings Social security Access to financial institutions

• • •

Uniform Training Maintenance

Provide for families: •

An Asset: A Rickshaw

• • •

Children’s schooling Clothing Cooking gas Food cart

• •

Eye/ Healthcare Family planning

Insurance Licenses Photo IDs

Meetings

Centre for Rural Development New initiatives Food cart for women entrepreneurship

Door to Door garbage collection

HEALTH SUPPORT CELL •MICRO FINANCE CELL

Centre for Rural Development Benefits: SPONSORS Corporate

Donors

(ONGC,IOC,HLL)

(Care-India, AIF,MF)

• Avenue for CSR • ‘Mobile’ advertisement facility at 96% cheaper rate for corporates • Flexible term options on advertising (1 month to 3 yrs) • Donors get 100% tax exemption • Donors can participate in the programme monitoring process

• Support in a sustainable model • Create a Visible impact • Working towards millennium development goal (MDG) to bring people 2 USD income per day • Leveraging of funds to reach larger numbers

Financial Institutes (SBI,ICICI,HDFC & PNB)

• Participate with purely commercial terms • Getting the commercial return as per the prevailing terms • 100% repayment

Centre for Rural Development Benefits: RICKSHAW DRIVERS •

Bonafide membership of the Rickshaw Bank

•

Receive ownership of an income generating asset

•

Inculcates the habit of savings

•

Social security such as insurance coverage for both the rickshaw, the puller, the passenger (s) and the mediclaim facility.

•

Provided platform to work with dignity- norms, uniforms, photo I-cards

•

Getting health and eye care support

•

Subsequent loan

Centre for Rural Development Operational Model •

5 Drivers constitute a group & 5 groups under one garage/ meeting point

•

Under each garage/meeting point cover 25 rickshaws and also provides repair facilities

•

Each garage/meeting point serves as the collection centre for the Drivers’ daily payment

•

Garage/meeting point are the creation of new entrepreneurship

•

Opening of new branches on a Franchise Model

Centre for Rural Development The Results: Triple Bottom Line •

• •

•

•

Provides Better Health Services to the Rickshaw drivers and their Families Brings Better Law and Order to the Community

Enables Rickshaw drivers to Own Their Rickshaws

•

Increases Rickshaw Driver’s Income Levels and Standard of Living

•

Provides a Financial Resource for Rickshaw pullers

•

Creates Jobs for Youths

•

Improves Sales for Local Businesses and Corporations

+

Creates a Positive Work Environment

Social Impact

Decreases Fossil Fuel Emissions from Auto Travel Increases the Use of Environmentally Friendly Cooking Fuel

•

+

Sustainable Community Development

Environmental Impact

+ Economic Impact

Centre for Rural Development The Results: Impact on Stakeholders Increases standard of living • Healthcare benefits • Clothing • Proper cooking fuel

• • • • •

• • •

Rickshaw ownership and higher income Safer work environment through well engineered rickshaws and insurance Health care benefits and education Support network through discussion forums and peer groups Pride and confidence within the rickshaw driving business

Less polluted environment passenger insurance Jobs for youths

Families of Rickshaw Drivers Government And Local Authorities

Rickshaw Drivers Impact on Stakeholders Members of the Community

Local Businesses Corporate/ Financial Institutions

Improves law and order • Less corruption • Better documentation through availability of licenses • Safer roads • Additional revenues

• •

Larger consumer market Job creation

•

Builds goodwill in the community Larger consumer market Effective and less expensive advertising Tax incentives and 100% donor efficiency Better investment opportunity

• • • •

Centre for Rural Development Cost Breakup of the Unit Particulars

Cost (Rs)

Rickshaw Assembling Cost

9600

Uniform Cost

450

Insurance Cost, 2 years

350

License Cost for both, 2 years

400

Total

10500

Amount recovered from each Rickshaw Puller Rs. 13,000/- @ Rs. 25/- EDI for 520 days for a maximum period of 18-24 months Average receivable Rs. 5000/- per rickshaw per year from the corporate advertisements till Rickshaw is owned by the RB and than 35% of the amount per year once Rickshaw is owned by the Pullers

Centre for Rural Development

Sl.No

1

States/ city

Assam

Type of client

Dipbahan

No of clients

No of ownership till date

2700

Seuj Bahan

350

Fish Cart

1254 Supplied to GMC

10

Nil

3

Nil

Food Cart

35

15

Ice-Cream Cart 2

Agartala

Dipbahan

450

38

3

Chennai

Dipbahan

200

78

4

Surat

Hath Lorry

237

90

5

Varanasi

Dipbahan

300

24

6

Allahabad

Dipbahan

400

57

7

Lucknow

Dipbahan

150

23

8

Chandni Chowk

Soleckshaw

7

Pilot model

4842

1579

Total

Centre for Rural Development Inauguration of Rickshaw Bank NOVEMBER 20, 2004 AT GUWAHATI, ASSAM Corporate representatives flag off the Rickshaw Bank

Centre for Rural Development

Partnership with AIF Phase - I Scaling up of the Rickshaw Bank project is supported by AIF for Guwahati as well as Noida. The capacity building support for the expansion and bank linkage support is sponsored by AIF. Phase – II For further scaling up AIF supported in expansion of more three new cities in partnership model. The operational cost of the new partners, hand holding cost of RB and FLDG is provided in this new phase of expansion.

Centre for Rural Development Rickshaw Bank at Agartala The Rickshaw Bank at Agartala was inaugurated by the Chief Minister of Tripura, Mr. Manik Sarkar in presence of Rural Development Minister and CGM, State of India on 26th July, 2006

Centre for Rural Development

PARTNERSHIP WITH CARE-INDIA Replication of the Rickshaw Bank has been initiated at Chennai in partnership with CARE- India to support 200 rickshaws for the Tsunami victims

Centre for Rural Development Rickshaw Bank at Chennai Rickshaws are released on Chennai Road on August 24, 2006

Centre for Rural Development

New initiatives at Surat A new initiatives is initiated at Surat by providing Hath Lorry (Hand Cart) with all other components of the Rickshaw Bank. The formal launching was organized on June 3, 2007 at Surat.

Centre for Rural Development

Partnership with PNB & AIF A tripartite partnership model is agreed upon to replicate the Rickshaw Bank model in 100 cities with 1000 rickshaws in each city. A CBO/ VO/ entrepreneur be identified and engaged as a partner to implement the project. Each Rickshaw Driver open their No Frill Account in the respective branches. FLDG provided by the AIF.

Centre for Rural Development

Launching at Varanasi, Allahabad & Lucknow The national launching of the programme was launched by its Former CMD Dr. K. C. Chakrabarty in presence of the Executive Director, AIF Mr. Pradeep Kashyap

Centre for Rural Development

Research and Development

• Initially IIT Guwahati assisted in R&D of Rickshaw Bank Project. • Existing full-fledged workshop at Guwahati for R&D process under the supervision of Mechanical Engineer with the support from DST, GOI. • Signing of MOU between IIT Kharagpur & CMERI.

Centre for Rural Development

Glimpses of workshop

Centre for Rural Development

Different carts

Centre for Rural Development

Different carts

Centre for Rural Development

Other Collaboration • Collaboration with the Department of Science & Technology, GOI • To replicate the Rickshaw Bank idea in 80 districts through promotion of new entrepreneurs in 16 states

• Collaboration with MIT, Boston • Design Innovation for Slow moving vehicle for India

Centre for Rural Development Recognition The Rickshaw Bank won The Citizen Base Investment Award 2003 for its concept at National Stock Exchange Building, Mumbai in November, 2003. IIM, Bangalore selected Rickshaw Bank project under their Microfinance Incubation Programme, during November – December, 2005. The Change makers Innovation Award Competition: Market-Based Strategies that Benefit Low-Income Communities at National Press Club, Washington on April 5, 2006. The Micro Finance Process Excellency Award, 2006 at New Delhi on April 7, 2006 given by the Planet Finance and the ABN Amro Bank. The Rickshaw Bank has got its recognition in the Limca Book of Records as First Rickshaw Bank under the business section in 2006.

Centre for Rural Development Srijan 2007 Microfinance Business Plan Competition 3rd Prize at Hyderabad on April 25, 2007. One of the finalist of the Micro Insurance Awards, 2007 at Hyderabad on July 27, 2007 Asian Innovation Awards, 2007 at Singapore on 13th November, 2007. The Assam Chief Minister’s Best Community Action Development Award, 2008 on August 15, 2008 India NGO Award, 2008 for the medium category from the Eastern Region Rickshaw bank also awarded as Best Innovative Project of the year, 2008

Centre for Rural Development

SOLECKSHAW A SOLUTION FOR ECO-FRIENDLY TRANSPORT

Motorised assistance Rickshaw - motor to run on battery, - battery to be charged with “solar energy”

rmer Union Minister of Science & Technology and Earth Sciences, Shri Kapil Siba and the Chief Minister of Delhi, Smt. Sheila Dikshit unched the “Soleckshaw” solar operated cycle rickshaw, at Chandni Chowk on October 2nd , 2008

Centre for Rural Development

CONTACT US Dr. Pradip Kumar Sarmah (Ashoka Fellow, India) Executive Director, CENTRE FOR RURAL DEVELOPMENT (CRD) Dewan House, Zoo Narengi Road, Guwahati- 781 021, Assam, Phone : +91-361-2228281 (O) Skype: PRADIP1963

E-mail:[email protected]/ [email protected] Website: www.crdev.org REGIONAL OFFICE : D-41 (First Floor) Sector- 27, Noida- 201301, UP, India Phone : 0120-2591436 / 4320703 Mobile: +91 9818863727