The fundamental problem facing adivasi households is their ability to access and utilize resources to improve their livelihood security. It is estimated that approximately 90% of adivasi families depend on informal credit sources for 80% of their credit needs. The informal credit suppliers, who are mostly moneylenders or trader-cum-moneylenders, enjoy a thriving market for their services since there are very few accessible viable alternatives available to the adivasis. Absence of effective institutional support systems for income generation activities has also aggravated the problem. This has been our experience in the adivasi areas of East Godavari district. With this in mind we have promoted Manyaseema, a credit and savings service cooperative initiated with self-help groups as the main stakeholders. In addition we have facilitated other micro credit institutions and business enterprises through mutually aided cooperative societies.

MANYASEEMA (ADIVASI COOPERATIVE BANK)

Manyaseema was initiated as an alternative bank catering to a federation of SHGs in E.G district. This institution is being managed by adivasi self-help groups’ representatives. In February 2007 Manyaseema was registered as a Micro-Finance Institution under the Mutually Aided Cooperative Societies Act (MACS), 1995.

ORGANISATION

It has a three-tier structure. A group of SHGs have been formed into cluster level associations. Manyaseema consists of a 20-member Governing Board constituted with members representing major villages from clusters in four mandals. The office bearers are elected by the Governing Board. Manyaseema provides its services directly to individual members through the SHG. Laya provides technical (operational, monitoring and review) support to the federation. The Manyaseema Federation is located in Addatigala mandal of East Godavari District and has been in operation since 1994. The Federation reaches out to 90 villages out of 416 villages across four mandals. The Federation has 112 SHGs constituted by 1,671 members (all adivasis) from 90 villages.