Social Mobilisation and Institution Development(SM&ID)

This component aims at reducing poverty in an effective and sustainable manner by mobilisation of urban poor households into a three tiered structure with Self Help Groups (SHGs) at the grassroot level, Area Level Federations (ALFs) at the ward level and City level Federations (CLFs) at the city level. There federations are equivalent to the existing 3 tier structure of Kudumbashree consisting of NHGs, ADSs and CDSs respectively. These institutions of the poor would partner with local self-governments, public service providers, banks, private sector and other mainstream institutions to facilitate delivery of social and economic services to the poor.

What benefits does DAY-NULM offer under the SM&ID component?

Engagement of Resource Organisation (ROs)– The existing CDS of Kudumbashree has been designated as Resource Organisation to facilitate the various activities under this component. RO is expected to conduct training to all members of SHGs on basic concepts of functioning of SHGs.

A maximum of Rs. 10,000 can be spent per SHG for its formation, handholding support for at least 15 months, training, bank linkage, opening of bank account, formation of federation and other related activities.

Revolving fund (RF) support to SHGs - A one time Revolving Fund Support of Rs. 10,000 will be provided to urban poor SHGs. The condition for an SHG to avail this benefit is that it should have been functional for a period of 6 months with at least 70% of SHG members being an urban poor. RF support is eligible for SHGs formed under SJSRY and have not yet availed the same.

Revolving fund support to ALFs - A one time Revolving Fund Support of Rs. 50,000 would be available to registered Area Level Federations (ALFs) of SHGs. This fund may be used as seed capital for the ALFs for the smooth operation and will form part of corpus of the ALFs.

Universal Financial Inclusion – Financial literacy camps to be organised for SHG members. Awareness about the savings, credit, remittance, insurance etc., along with the modalities and operational requirements for accessing the same is ensured in these camps.

Opening of Bank Accounts – Access to formal financial system can be achieved only by holding a bank account. Opening of one bank account per family has to be ensured.

Affordable Insurance (Health, Life and Pension)

Ensure facilitation of low cost insurance products/services including micro-pension to potential beneficiaries. Ensure maximum coverage under existing/on-going insurance schemes of Government of India such as Rashtriya Swasthya Bima Yojana (RSBY) for health insurance, Janashree Bima Yojana (JBY) for Life insurance, any State specific insurance schemes and micro insurance products.

City Livelihood Centres (CLCs)

CLC aims at making available services in the informal sector in an organized and reliable manner in urban areas for middle and higher income groups.

Objectives of establishing CLCs
1. CLCs would bridge the gap between demand and supply of goods and services produced by the urban poor by providing support for marketing of goods and services of the urban poor.
2. Urban poor can access information and business support services. Support for opening bank accounts, information on training/employment opportunities under NULM and other schemes, information on social welfare schemes, enrolment for UID/Aadhar Card would be provided through CLCs.