Development of Women and Children in Rural Areas (DWCRA)- A Microfinance Success Story in Andhra Pradesh

In addition to implementing welfare schemes for rural women, DWCRA also aimed at involving the women in development activities by organizing them into groups. Besides, it focused on social issues such as health, education, sanitation, nutrition and safe drinking water in rural areas (Refer Table I for objectives of DWCRA).

The administrative set-up of DWCRA involved five levels - village, block, district, state and national (Refer Figure I). At the village level, self help groups (SHGs) popularly known as DWCRA groups were formed. Generally, each DWCRA group had 15-20 women members. Every group chose a leader, called the organizer, who conducted group meetings and maintained the group's accounts.

At these monthly meetings, groups decided on the targets regarding the amount to be saved, the rules and regulations regarding loans, and the interest rate charged on the loans. A group which successfully achieved its savings target became eligible for availing of credit from the bank for starting income generation activity. Based on their skills, the group members collectively decided on the income generation activity that they would undertake. At the monthly meetings, these women also discussed their problems and tried to find solutions. The state government deployed a gram sevika (village coordinator) for every village to oversee the implementation of the DWCRA program.