Savings Services

Fund and Savings Management

The following funds and savings have been arranged under the program. The management committee will be able to make amendments to the funds and savings management.

1  Group Saving (Central Saving) 

In this program, a Central savings arrangement has been made for the rural women members involved, to instill the habit of saving regularly, even if it’s a small amount.

• The savings amount collected from each member of the participating groups during two weekly or monthly center meetings, as well as the savings amount from the training period prior to group entry, will be deposited into the center’s savings.
• The savings amount will be deposited in the branch/sub-branch/unit office operated by the group through the central saving center. This savings account will earn interest at an annual rate of 6 percent. The interest rate may be subject to change from time to time by the organization’s board of directors. The minimum deposit amount will be as determined by the organization.
• From this savings amount, loans can be provided to members according to the loan arrangement provided by the central fund as per paragraph (j). But for this facility, there should be no other loans.
• If a member of the group withdraws, the remaining savings amount will be returned to them after deducting their loan balance, interest, and other responsibilities. However, if any member has a guarantor, the amount saved in the center will not be refunded until that person’s loan is paid off.

2  Central Fund Savings

The center has made arrangements for a fund to make the members self-reliant, work collaboratively with each other, and instill a spirit of cooperation among them.

• From the program, 2% of the general loan amount taken by the members will be deducted for the central fund and the amount will be deposited in the central fund.
• The amount of this fund will be collected and operated from the center through branches/sub-branches. The account of each member’s central fund will be kept separately and clearly visible.
• The central fund will provide interest at an annual rate of 6 percent. This interest rate may be subject to change by the institution’s board of directors.
• The amount accumulated in this fund will only be returned at the time of the member’s withdrawal. When returning the amount of savings and interest deposited in the central fund to the member, only the remaining amount will be refunded after deducting the obligations that need to be collected from them. if a member has a guarantor, the amount saved in the center will not be returned until their loan is fully paid off.
• Members leaving the group/center will also have the amount deducted from their center funds calculated according to the interest. After deducting their loan amount along with interest and liabilities from the incoming amount, only the remaining amount will be returned to them. If any member has a guarantor, the amount from the central fund will not be refunded until their loan is repaid.

3  Personal savings or discretionary savings

• Members participating in the program will be able to keep the amount they have in their personal savings accounts. During the two weekly or monthly meetings, members will be able to deposit and withdraw money from their personal savings accounts. The minimum amount for transactions in the personal savings account will be Rs. 500 (five hundred). If the amount is less than this, it will not be refundable, and any amount can be deposited during transactions.
• Members of the group/center can conduct personal savings transactions at the office on days other than the day of the central meeting, by going to the branch/sub-branch/unit office.
• The personal savings amount will be deposited at the branch/sub-branch/unit office. In this savings account, an annual interest of 6 percent will be provided by the branch/sub-branch/unit office. The interest rate on such savings may be subject to modification by the organization’s board of directors. However, if a member has provided a guarantee, the amount of personal savings will not be refunded until that person’s loan has been paid off.

4  Benevolence fund

• The fines, penalties, donations, and other collective amounts collected from the central meeting will be deposited into the Welfare Fund. The management of this fund will be conducted by the central office. Additionally, it is mandatory to deposit NPR 50 per meeting.
• The amount of the assistance fund will be deposited at the branch/sub-branch/unit office. The branch/sub-branch/unit office will provide an annual interest rate of 6 (six) percent on this fund. The interest rate provided by this fund may be subject to change by the organization’s executive committee.