Awards, Competitions, Funding Grants

Poorest States Inclusive Growth Programme – SIDBI UKAID DFID RFP

sidbi ukaid india

Small Industries Development Bank of India (SIDBI) is implementing a project supported by UKAid through Department For International Development (DFID) namely “Poorest States Inclusive Growth Programme (PSIG)”. SIDBI invites 4 separate Request For Propoals (RFPs) for short listing of Consultants for carrying out the following activities under PSIG:

RFP 1: For hiring of Local Project Coordinator (LPC) for coordinating conduct of Finscope Survey in four states in India (Odisha, Uttar Pradesh, Madhya Pradesh and Bihar).

RFP 2: For hiring of Local Research House(s) (LRH) for conducting ‘FinScope Survey’ in four states in India (Odisha, Uttar Pradesh, Madhya Pradesh and Bihar).

RFP 3: For Compilation of Drill-down Case Studies of existing Business Correspondents and Business Correspondent (BC) models in MP.

RFP 4: For Providing Technical Advisory Support to Partners in PSIG Techno-Inclusion Fund.

For more details, interested Consultants may visit the tender page on web site of SIDBI at

The RFPs must be submitted as per schedule time mentioned in the respective RFP documents.

Last Date of Submission: 15 May 2014

Poorest States Inclusive Growth (PSIG) Programme

Overview of PSIG

SIDBI is implementing the PSIG programme funded by Department for International Development, (DFID), UK. The programme aims to enhance the income and employment opportunities of poor women and men in 8 low income States by enabling them to participate and benefit from wider economic growth in India. The purpose of the programme is to improve income, and reduce vulnerability, of poor people and small producers, by expanding their access to finance and markets.

  1. 1.    PSIG has two separate, interlinked components.

Component 1Financial Inclusion and women’s empowerment: The programme (duration of 6 years) shall  improve access for poor men and women to a variety of financial services in the 4 low income states (Bihar, Orissa, Madhya Pradesh and Uttar Pradesh ) and will:

a) facilitate financial services institutions, including banks and MFIs, to provide services for poor people in geographical areas to which they would not otherwise go by providing patient capital, guarantees or technical assistance, as appropriate;

b) supplement microfinance programmes with training for women to improve their knowledge and confidence in financial services

c) facilitate studies, set up high level think tanks and feed into improving the policy environment for microfinance and improving overall business environment in the Low Income states; and

d) fund commercially sustainable approaches that demonstrate responsible client practices and complement Government of India programmes.

Component I would have three outputs as under:

  1. I.     Policy and institutional environment that encourages provision of financial services to poor people in a responsible manner facilitated
  • Establish National and State level Think Tanks for Policy Advocacy.
  • Carrying out Pilots on Business Correspondents, Branchless banking, Credit bureau etc.
  • Preparation of Vision Documents

II.  Institutions providing diverse financial services promoted

  • Promotion of   institutions providing diverse range of financial services that meet client requirements, such as savings, credit, insurance and transfer services;

SHG Channel

  • Branchless banking –
  • Support study of leading BC models and development of a demonstrable viable BC model.
  • Rural finance Institutions
  • Support provision of escort services by NGOs, for clients of RRBs and DCCBs in poorer districts to provide sustainable financial services to SHG members.
  • Support capacity building and sensitization of bank staff at branch level.
  • Community based organizations
  • Provide support for demonstration of scalable model of SHG–federation/ resource center through pioneer NGOs, for building capacity of local NGO/SHPIs.
  • Capacity building of training institutions engaged in capacity building of SHPIs/SHGs.

MFI Channel

  • Capacity building Support for development and promotion of local MFIs to enhance their outreach and geographical spread.
  • Capacity building Support to large, multi-State MFIs for expanding operations in the backward / poorest areas.
  • Mobilising loan funds and investments for MFIs to scale up outreach of financial services to poor.
  • Loan funds to be leveraged from other Banks / FIs.
  • Equity / Quasi-equity support to be leveraged through SIDBI, NABARD and other sources.
  • Risk fund support / guarantee fund support to Banks / MFIs /  two-tier institutions in respect of their incremental lending to poor clients
  • Suitable CB and TA support to be considered for banks / FIs.
  • Signing up of responsible funding code of conduct to be included as covenants for granting support to MFI’s
  • Identify areas with low MF penetration and identify institutions to improve their outreach.
  • Enhancing outreach in poorest / backward regions – Provide  support to an Implementing Agency for identification of suitable economic opportunities, skill development, Credit- linking,  with due hand holding and escort services to the poor.
    • Provide incentive for last mile connectivity.
    • Support to bridge Viability gap and provision of risk fund.
    • Product Development
      • Support to Technical Service Providers (TSPs) to address gaps  in savings, insurance and other vulnerability reducing products,  gender specific products, micro pension,  remittances, livelihood/family income  based products,  emergency needs, green products and other customer oriented products.
      • Support for launch / up scaling of new technology led models.

III  Women’s capacities to tackle financial and gender issues enhanced

  • Gender and social inclusion module (gender issues within the household and in the community, social exclusion etc.)
  • Social development and Legal rights module (health, education and legal entitlements)
  • Facilitating monthly discussions on social and gender issues with all clients

Component 2: Impact Investments: The programme funds will be spent on promoting businesses that increase the income of, or services to, the poor in 8 low income Indian states (Bihar, Orissa, Madhya Pradesh, Uttar Pradesh, Chhattisgarh, Jharkhand, Rajasthan and West Bengal). The programme funds will provide capital or guarantees to businesses which have the potential to benefit poor people, but which do not attract private capital even though they are judged to be financially viable. The investments will be judged on social and environmental performance in addition to financial risk and return, and will be in the form of debt, equity, venture capital and guarantees.

  1. 2.   PSIG is expected to leverage private sector financial and technical resources to reach up to 12 million direct and indirect beneficiaries. The programme’s investments in enterprises in the 8 poorest states will result in better opportunities for the poor to benefit as producers, consumers or skill providers.
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