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Rural Financial Services Project

PN10305 | Project Completion Report Review Note | 27-Jan-2011

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1) Co-financing with other partners involves huge challenges, especially when loans/grants from all partners are approved at different times and with significant time lag between dates of approvals.

2) Improving financial services for poor people requires substantial efforts to strengthen rural MFIs including Rural Community Banks (RCBs) in order to expand their outreach. A comprehensive competency profile is required to understand their capacity building needs, and to tailor training appropriately

4) RCBs operate in an increasingly competitive environment, and do not have a hallowed right of existence. Building their long-term sustainability requires them to become more efficient, commercially oriented and able to provide an increasing range of financial products to their clients. Support needs to build this dynamic capacity to allow RCBs to continue to innovate; building capacity to deliver a certain set of services at one point in time is insufficient and ineffective

10) The quality of training providers and business development services for rural MFIs cannot be taken for granted. Development of curricula and the constant screening of capable training providers is required and must be constantly updated to reflect evolving best practices and changing needs of the sector.

11) Where markets for technical and business services are weak and the capability of apex organizations is constrained, contracting independent agencies or firms to oversee these activities is an effective mechanism for achieving project objectives and obtaining feedback for mid-course corrections. However, special attention should be paid to ensure development of capacity within primary implementing institutions. Clear performance based contracts with these agencies is critical to success.

12) A robust and efficient project management is more likely with strong state institutions. Management can be further supported by ensuring that internal control systems of the project are based on the control procedures already in place in the implementing institution.



Summary Report PN10305_SR_EN PN10305_SR_EN.pdf