Strengthening Rural Social Security: The Role of 'Pension Sakhis' in Financial Inclusion
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The Department of Rural Development and PFRDA have launched a collaborative initiative to expand pension coverage in rural India by utilizing the existing network of Self-Help Groups (SHGs) and 'Pension Sakhis'.
The recent memorandum of understanding (MoU) between the Department of Rural Development and the Pension Fund Regulatory and Development Authority (PFRDA) marks a strategic shift in India’s approach to rural financial inclusion. By integrating the Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM) with pension architecture, the government aims to bridge the coverage gap in social security for the rural populace, particularly women.
The core of this initiative lies in the creation of a cadre of 'Pension Sakhis'—trained community resource persons drawn from the vast network of Self-Help Groups (SHGs). These Sakhis act as a bridge between the formal financial system and the last-mile rural household. By providing doorstep access to pension schemes, the initiative addresses the twin challenges of low financial literacy and the physical distance to banking infrastructure, which have historically hindered the adoption of formal social security products among the rural poor.
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