Unit-3 Panchayati Raj and Rural Administration

Administrative Structure in India

India is a Sovereign Socialist Secular Democratic Republic with a Parliamentary form of

government which is federal in structure with unitary features. There is a Council of Ministers
with the Prime Minster as its head to advice the President who is the constitutional head of the
country. Similarly in states there is a Council of Ministers with the Chief Minister as its head,
who advices the Governor. This section provides insight of Indian governance and
administration at the Central, state as well as local level. Information about the Constitution of
India, Parliament and Legislature, Union administration, state, district and local
administration is given. All these ministers have bureaucrats under them to run the center and
state to provide service and assess the problems of respective jurisdiction. The duration of all
the political party and hence their ministers is 5 years while Bureaucrats are permanent.

Bureaucracy is a term that refers to “government by offices.” Bureaucrats assign government

policy to consider the laws enacted by elected authorities and carry them out successfully.
These are permanent professional staff members of the executive branch of Government. An
administration directs organizational resources toward a specific aim, such as profit
generation or service administration.

Need of Panchayati Raj System

Bureaucrats deal with administration at district level. On an average, there are about 1000
villages in a district with an average population 1.3 million. It becomes difficult to assess all
the problems and service administration of the village under particular jurisdiction. It leads to
establishment of an organization at Panchayat level so that the problems of rural areas can be
assessed properly and service will be provided. This system which was inaugurated by the
then Prime Minister Pandit Jawaharlal Nehru on 2 October 1959 at Nagour in Rajasthan.

Panchayati Raj System

The first organized effort to solve the problem of rural India was made through the Community Development
Program in the year 1952 and National Extension Service in 1953. On the completion of first five years of the
CDP, the planning Commission appointed a high-ranking study committee headed by Balwant Rai Mehta, Chief
Minister of Gujarat. This team pointed out both positive results and inadequacies in the implementation of the
program. This committee recommended Panchayati Raj.

The study team made a significant recommendation with implementation of a program. According to it there
should be effective administrative decentralization for the implementation of the program. The decentralized
administration was to be placed under the control of selected and integrated local self-government system
ordinarily of 3 levels bodies from village level to block level and then to district level. This democratic
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decentralized system was named as “Panchayati Raj”. The state of Madras tried this as a pilot project as early
as 1957. In 1958, Andhra Pradeshstate had twenty such pilot projects. Based on the success in these it was the
state of Rajasthan which became the pioneer to bring the whole state under democratic decentralization on
October2, 1959. It was implemented in Gujarat on April 1, 1963.

Interest in the Panchayats was revived in the mid 1980s as it became clear that the lack of democratically
elected decentralized-structures was a major obstacle to the social, economic and political development of
India. This eventually led to the passing of Constitutional Amendments in 1992, which made it mandatory for
all the States and Union Territories to establish regular democratically elected-bodies for local self
government. The 1992 Constitution (73rd Amendment) Act mandates the establishment of a three tier system
of strong, viable and responsive Panchayats or councils at the village, intermediate and district levels.
Similarly, the 1992 Constitution (74thAmenhent) Act envisages the establishment of Municipalities in urban
m. Panchayati Raj and municipal bodies are responsible for primary and secondary schools, technical training
and vocational education, and adult and non-formal education. The State Government is in charge of the
overall supervision and retains residuary powers with regard to issues such as overall academic standards,
formulation of syllabi and curricula, preparation and prescription of textbooks, and conduct of public
examinations. States are expected to transfer adequate powers, responsibilities and finances to these bodies,
according to a plan to be carried out in stages. The central government foresees the launching of a massive
publicity-campaign, accompanied by a massive training and orientation programme to mobilize interest in the
Panchayats and encourage effective participation. Panchayati Raj Institutions -the grassroots level units of self-
government - have been proclaimed as the vehicles of socio-economic transformation in rural India. Effective
and meaningful functioning of these bodies would depend on active involvement, contribution and
patticipation of its citizens, both male and female. The aim of every village being a republic and Panchayats
having powers has been translated into reality with the introduction of the three-tier Panchayati Raj system to
enlist people's participation in rural reconstruction.

Gram Sabha
Gram Sabha is a body consisting of persons registered in the electoral rolls of a village or a group of villages which
elect a Panchayat. A vibrant and enlightened Gram Sabha is central to the success of the Panchayati Raj system. The
year 1999-2000 has, thus, been declared as the "Year of the Gram Sabha". State Governments have been urged:
• To vest in the Gram Sabha the powers on the lines envisaged in the Provisions of the Panchayats (Extension to
the Scheduled Areas) Act, 1996.
• To make a mandatory provision in the Panchayati Raj Act for holding Gram Sabha meetings throughout the
country on the occasion of Republic Day, Independence Day, Labour Day and Gandhi Jayanti.
• To make a mandatory provision in the Panchayati Raj Act specifying separately, the quorum for Gram Sabha
meetings, for odmary meetings, meetings convened for special purposes and re-convened meetings due to
cancellation of and earlier meeting for want of quorum.
• To make members of the Gram Sabha aware of their powers and responsibilities with a view to ensuring mass
participation, particularly of the hitherto mar@sed groups, such as women and SCs/STs.
• To lay down procedures for the Gram Sabha to effectively carry out social audit of beneficiary-oriented
development programmes of the Ministry or Rural Development, particularly the legal powers of the Gram

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 Sabha to order recovery or punishment for fmancial mismanagement.
• To evolve a plan of action for generating wide publicity for Gram Sabha meetings.
• To evolve guidelines/pmedures for holding Gram Sabha meetings and a model list of business for such meetings.
• To generate awareness as to the rights of the Gram Sabha with respect to control over natural resources, land
records and conflict resolution.
The Constitution (Seventy-third Amendment) Act, 1992 envisages that empowered Panchayats, as institutions of self-
government at the village level, will be capable of-
• Planning and executing village level public works and their maintenance.
• Ensuring welfare of the people at the village level including health, education, communal harmony, social justice
particularly gender and caste-based discrimination, dispute resolution, welfare of children especially of girl child.
The Constitution (Seventy-third Amendment) Act, 1992 also envisages empowered Gram Sabhas as the Parliament of
the People at the grassroots level to whom the Gram Panchayats are solely accountable.

Some explanations:

Panch: An assembly of elders who settled the disputes within the limit of caste/customs.
Panchayat: An assembly of elected persons of the village. Village bodies were the lines of contact with
higher authorities on matters affecting to the village.
Democracy: The word Democracy derived from Greek language Democ means the people and Cracy means
rule of. It is leading of the people by the people, for the people.
Decentralization: Devolution of central authority among local units close to the area served.
Democratic decentralization: means where authority develops by the process on people‟sinstitution and act
as local self-government.

Specific Objectives:

1. Assistance to the economically weaker sections of the community.

2. Cohesion and cooperative self help in the community.
3. Development of cooperative institutions.
4. Development of local resources including the utilization of manpower.
5. Production in agriculture as the highest priority in planning.
6. Progressive dispersal of authority and initiative both vertically and horizontally with specialemphasis on
the role of voluntary organizations.
7. Promotion of rural industries.
8. Understanding and harmony between the people‟s representatives and people servants through
comprehensive training/education and a clear demarcation of duties and responsibilities.

Philosophy of Panchayati Raj

The philosophy of Panchayat Raj is deeply steeped in tradition and culture of rural India and is by no means a
new concept. Panchayati Raj Provided a system of self-governance at the village level. Panchayati Raj

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Institutions is the grass-roots units of self-government – have been declared as the vehicles of socio-economic
transformation in rural India. Effective and meaningful functioning of these bodies would depend on active
involvement, contribution and participation ofits citizens both male and female. The aim of every village being a
republic and panchayats having powers has been translated into reality with the introduction of the three-tier
Panchayati Raj system to enlist people‟s participation in rural reconstruction.

Three tiers (levels) of Panchayat Raj:

1. Gram Panchayat
2. Block Panchayat
3. Zila Panchayat

The Gram Panchayat: Gram Panchayat is the primary unit of Panchayati Raj Institutions or local self-government.
In other words it can be said that the first formal democratic institution under thedirective principle in the Indian
constitution is the Gram Panchayat. It is a cabinet of the village elders, directly elected by the adult citizens of
the village.

Gram Panchayats are constituted considering their income, population and area. There is a provision for
reservation of seats for women and Scheduled Castes and Scheduled Tribes. The panchayat has tenure of five
years and is directly elected. It has income through taxes to performits functions.

The main functions of Village Panchayat are:

1. Preparation of Annual Plans for the development of the village Panchayat area.
2. Preparation Annual Budget of Village Panchayat.
3. Mobilization of relief in natural calamities.
4. Removal of encroachments on public properties.
5. Organizing voluntary labours and contribution for community works.
6. Maintenance of essential statistics of villages.
7. Such other development works as may be entrusted.
8. Service or developmental function, such as promotion of education, health, agriculture, etc.
9. Representative function, where the main role is to voice and represent the opinion;
10. Regulatory and administrative functions, which consists of regulating the conduct of individuals and
institutions and also collection of taxes.

Sources of income of village panchayat

1. Share in land revenue.

2. Local tax.
3. Revenue earned from the settlement of shops, fisheries, etc
4. House taxes & other taxes as specified in Panchayati Raj Act.
5. Fees for providing amenities, cess, tolls.
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6. Contribution and grants.
7. Fine and penalties.

Taluka/block Panchayat: It is also known as Panchayat Samiti or Panchayat Union: This is thesecond tier of
the administration at Taluka or Block level. It is headed by Taluka President. Block Development Officer is
appointed by the Government. He functions as the leader of the Block.

The main functions of the Panchayat Samitis are planning, execution and supervision of all developmental
programmes in the Block. It also supervises the works of Gram Panchayats within its Jurisdiction. It has to
instill among people within its jurisdiction a spirit of self-help and initiative and work for raising the standard of
living. It has to support for the implementation of development programmes. It has the welfare and development
activities in the fields of agriculture, animal
husbandry, health, sanitation, elementary education, cottage industries and social. It has to use the village housing
project funds and loans.

Zilla Panchayat: It is also known as District Development Council or Zilla Parishad. This is the third tier of
Panchayat Raj functioning at district level. It is headed by Panchayat Union Chairman. District Collector leads the
work with the help of District Development Officers.

Functions:

1. It works as advisory body for blocks.

2. It approves budget and plan of blocks.
3. It allots funds to the blocks.
4. It approves budget and plan of blocks. It allots funds to the blocks.
5. Secondary education is the responsibility of this council.
6. It should advise Government in all matters relating to rural development in the district.
7. It has to review the results achieved under various items in all the blocks.

Some special features of Democratic Decentralization:

1. The sanctioning powers of most of the works and schemes are with panchayat Samitis and standing
committees.
2. Most of the functions are implemented and performed by administrative control of the Panchayat Samitis.
Thus, there is a single agency at Block level for all developmentprogrammes.
3. The power and functions of the District Boards are allocated among the parishads and the samitis, which
are within the reach of rural people.
4. Panchayat samitis have all the technical assistance required at the block level itself.
5. Elementary education is the sole responsibility of the panchayat samitis.
6. Rural medical institutions in the Block are under the administrative control of the panchayat samitis.
7. Members of the panchayat samitis have the right to inspect institutions or works in the Blockwith a view to
ensure efficient working and execution and draw the attention of the executive to any defects.
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8. Personnel functioning within the Block are pooled together so that they function in a coordinated way
under the samitis.
9. The responsibility for maintenance of minor irrigation works.
10. Panchayat samitis provide financial and technical assistance and supervision to panchayats.
11. Block plans are made based on village plans, district plans based on block plans and state are made based on
district plans. This way plans are made truly based on needs of the people.
12. The panchayat samitis are given power to levy surcharges on taxes levied by the panchayats. This will help the
panchayat samitis to build up their resources.
13. The main functions of the popular institutions are planning and execution of all schemes of rural
development on the twin principles of self-help and mutual cooperation.

Panchayat Raj system gave significant progress in the fields of primary and secondary education, communication,
agricultural extension, cooperation, health, etc. People could get drinking water. In some places people had
protected water supply, Village streets, electric light provision, village sanitation, etc., had enough resources.
Rural awakening was brought up among rural people; as a result villagers became conscious of their rights and
improved their standard of living.

The composition of the governing body is as follows.

1. Chairman of Zilla Parishad Chairman

2. All MPs and MLAs and MLCs of the District
3. 1/3rd of Panchayat Samiti Chairpersons to be nominated by rotation in alphabetical orderfor a tenure of one
year, one of whom must belong to SC/ST and another woman.
4. CEO of Zilla Parishad / District Collector – Chief Executive Officer / Executive Director
5. Head of the Central Cooperative Bank of the District
6. Chairman Regional Rural Bank
7. District Lead Bank Officer
8. Representative of the Reserve Bank of India at district level
9. NABARD representative at district level
10. General Manager, DIC
11. Representative of KVIB
12. District Officer in charge of Scheduled Caste / Scheduled Tribe Welfare
13. District women & Child welfare officer
14. District officer dealing with welfare of the disabled
15. One representative from technical institutions
16. Two representatives of NGOs
17. Two representatives of the weaker sections, one of whom may be drawn from SCs andSTs
18. One representative of rural women
19. Project Director, DRDA- Member Secretary

Wherever the Zilla Parishads are not in existence, the State Governments may nominate electedmembers of the

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State Legislature from the concerned districts to act as Chairman of the Governing Bodies of the DRDAs.

Structure of Financial Organizations in Panchayati Raj Institutions

1. Governmental Organization- NABARD (National Bank for Agriculture and Rural Development)
2. Micro-finance
3. Non- Governmental Organization (NGO)
4. Community Based Organizations (CBO)
5. Concept of Self help group

NABARD (National Bank for Agriculture and Rural Development)

NABARD is set up as an apex Development Bank with a mandate for facilitating credit flow for promotion
and development of agriculture, small-scale industries, cottage and village industries, handicrafts and other
rural crafts. It also has the mandate to support all other allied economic activities in rural areas, promote
integrated and sustainable rural development and secure prosperity of rural areas. In discharging its role as a
facilitator for rural prosperity NABARD is entrusted with

1. Providing refinance to lending institutions in rural areas

2. Bringing about or promoting institutional development and
3. Evaluating, monitoring and inspecting the client banks
4. Besides this pivotal role, NABARD also:
• Acts as a coordinator in the operations of rural credit institutions
• Extends assistance to the government, the Reserve Bank of India and other organizations in matters
relating to rural development
• Offers training and research facilities for banks, cooperatives and organizations working in the field of
rural development
• Helps the state governments in reaching their targets of providing assistance to eligibleinstitutions in
agriculture and rural development
• Acts as regulator for cooperative banks

Micro-finance
Micro-finance is a set of financial services, which mostly include savings and credit, and often encompass other
services like insurance, directed to ultimately benefit the disadvantaged section of the population (referred to as the
poor or disadvantaged here, though it will mean more than just being economically poor). This is often backed up
with a variety of support services, which include motivating and organising the poor, extending financial training, and
helping them build backward and forward linkages with other support institutions. These services are often referred to
as Credit Twentieth century witnessed large-scale conscious efforts of social change to improve the quality of life of
the disadvantaged The concept of micro-finance emerged from the experiences of these efforts. It was recognised that
making financial services available to the poor is a necessary, though not a sufficient, condition for improving the
quality of their life. However, it was also observed that, in spite of establishment of a large network of finaricial

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outlets, a large majority of the disadvantaged had no access to formal financial systems. Therefore, thinkers
concerned with development in different parts of the world made efforts to make financial services, including savings
and credit, available to the disadvantaged. Micro-finance is a result of the work of such social innovators.

NON – GOVERNMENTAL ORGANIZATIONS (NGOs)

The term “NGO” has various interpretations, it’s generally accepted to incorporate private
organizations that operate without government control which are non-profit and non-criminal.
Other meanings further explain NGOs as associations that are non-religious & non-military.
A non-governmental organization (NGO) may be a non-profit, citizen-based group that
functions independently of the state. You can apply for NGO registration. Civil societies also
refer to as civil societies, organize at the neighbourhood, national and international levels to
serve specific social or political needs and are cooperative rather than commercial.
.
The NGOs became prominent after independence, especially after 1970s. Development parishioners,
government officials and foreign donors consider that NGOs by virtue of being small scale, flexible, innovative and
participatory, are more successful in reaching the poor and in poverty alleviation, NGOs involved in initiating and
implementing rural development programme. At present 30,000 NGOs working in India.
Definition of NGOs: The term NGOs is used to denote / specify those organizations which undertake voluntary
action and social movements.

A non-governmental organization (NGO) is a legally constituted organization created by legal persons that
operates independently from any government and a term usually used by governments to refer to entities that
have no government status. In the cases in which NGOs are funded totally or partially by governments, the
NGO maintains its non-governmental status by excluding government representatives from membership in the
organization. The term is usuallyapplied only to organizations that pursue some wider social aim that has political
aspects, but thatare not overtly political organizations such as political parties.

TYPES OF NGOs:

1. Operational or Grassroots NGOs: Grassroots NGOs directly with the oppressed sections of society. Some
NGOs are big, while some are small. These NGOs could be either localbased, working in a single and small
project location or be working in multiple project areas in different districts, states and regions covering a
larger population.

The approach and orientation of grassroots NGOs are also differ.

• Charity and Welfare NGOs focus on providing charity and welfare to the poor.
• Development NGOs focus on implementation of concrete development activities.
• Social action groups focus on mobilizing marginalized section around specific issues which challenge
the distribution of power and resources in society.

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 • Empowerment NGOs combine development activities with issue based struggles.

2. Support NGOs: Support NGOs provide services that would strengthen the capacities of grassroots NGOs,
Panchayati Raj Institutions, co-operatives and others to function more effectively.

3. Umbrella or Network NGOs: Network NGOs are formal associations or informal groups of grassroots and / or
support NGOs which meet periodically on particular concerns. E.g. FEVORD-K (Federation of Voluntary
Organizations in Karnataka). They act as a forum to share experiences, carry out joint development endeavors
as well as engage in lobbying and advocacy.

4. Funding NGOs: The primary activity of these NGOs is funding grassroots NGOs, Support NGOs or
people‟s organizations. Most funding NGOs in India generate a major part of their resources from foreign
sources; through there is an effort by some to raise funds from within India.

Characteristics of a good NGO:

1. A good NGO is one which has capable, balanced (especially in terms of gender) and matured board of
directors/members. The NGO aims at good governance in the sense that the programme needs to be
developed by involving the people, staff and board. This ensures that everyone in the organization would
know about the activities to be implemented, the funds availed of each of the activity, how the activities
are to be implemented and monitoring of theactivities.
2. The NGOs need to begin their work after analyzing the situation and needs of the community. This enables them
to have clarity with regard to the actual needs to the community. The NGOs should seek to enable participation
of members not as recipients of benefit but as those whocontrol and monitor the programme.
3. NGO needs to comply with all the statutory requirements and follow good systems and procedures
regarding activities, accounts, progress etc.
4. A good NGO should be accountable to all the parties concerned. It needs to be committed tothe objectives
that it has set for itself. Hence, there is need to report the progress made with reference to objective
fulfillment to the board, people, government, donors and to the media.
5. NGO need to adopt less bureaucratic, participatory and cost effective approach to the development.
6. A good NGO enable the poor to have access to qualitative and cost-effective service.
7. Enabling the people to develop capacity to approach the government departments and banks and access the
resources on their own and influence government policy making and implementation is one of the
characteristic of a good NGO. The capacity building should include:
• Provision of information on relevant government programmes.
• Enabling the people to approach government officials.
• Enabling the people to access the programmes without resorting to corrupt practices and within the
rights framework.
• Enabling the people in productive and effective utilization of resources
• Motivating the people to repay loans, if borrowed from banks etc.
8. A good NGO respond to the emerging the challenges at appropriate time.

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9. Enables the poor to enter into panchayats and gain access to, and control the decision making at the
grassroots level.
10. A good NGO enables the organization of the poor to come together in a network and enablesuch a network
to influence the policies of the state through lobbying and advocacy.
11. Registration of Society or a Trust for running NGO for public welfare activities in India

The commonly used word NGO stands for Non-Governmental Organization which is formed by a group of
private persons, registered under the Society Registration Act of 1860 and recognized by government for performing
some of the functions or allocated work on behalf of government. Thisis a very unique and informal type of
arrangement made by the government wherein the government extents the help, support and authority to a
private body to perform some of the workof the government on behalf of it. The activities being assigned to
NGOs are mainly welfare activities which may be of various types. In some cases the activities assigned to the NGO
are also administrative also. The NGO is widely used for the registered trusts as well as societies in Indiawhich
perform such work. The government is more concerned about the compliance of the various norms related to the
grants to be given to the society and the utilization of the funds by the NGO.
Establishing a NGO in India
A NGO can be established either through a registered Society or through a Trust. Both these options are
explained in details hereunder:- Society under The Society Registration Act, 1860 The establishment of a NGO
in India is through the registration of a Society under the Society Registration Act of 1860 for which at least
seven persons are required as the desirous persons toestablish the said society. The identification and residential
proof of the said persons is essential. The application for registration of the society is submitted before the
registrar of Society who confirms all the documents and then on the basis of which the Registrar of Society
grants the registration of society.

STEPS INVOLVED WITH THE REGISTRATION OF A SOCIETY

1. Forming a group of minimum seven desirous persons to form the said society.
2. Clearance of the name of the society from the Registrar concerned where the office of the society is proposed
to be located.
3. Drafting of the deed of society as per the Society Registration Act 1860 and all other standing orders
issued from time to time which contains the rules and regulations for running the society and the bye
laws.
4. Obtaining a NOC from the owner of the premises where the office of the society isproposed
to be located.
5. Filing the proof of residence and identification of all the desiring persons.
6. Submitting the society documents along with all the relevant documents and the drafteddeed before the
registrar for registration.
7. Issuance of the Registration Certificate by the Registrar of Society.
8. Obtaining a PAN card for the society from the Income Tax Department.
9. Opening a bank account for the society for the regulation of funds of the society.
10. Getting the exemption under Section 80 (G) of the Income Tax Act for exempting thedonations from
taxation.
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11. Getting clearances from RBI for receipt of foreign funds in the society.
12. Filing of ITR for the society after the end of the financial year.

The management of NGO:

The management of NGO is mainly in the hands of the persons who have formed it as per the bye laws and
regulations prescribed by the government. Since most of the NGOs are run on government donated funds,
some measures to ensure the appropriate expenditure of the funds given by the government are taken at the
management level. Government also seeks the audit ofthe funds and the way in which the funds have been spent.
This all is done in a transparent manner which provides a lot of operational freedom to the NGO to operate and
achieve its goals. In most of such cases there is a provision in the bye laws that all the income, earning, movable &
immovable properties of the NGO shall be solely utilized and applied towards of the promotion of its aims and
objects as set for in the memorandum of association. No profit on there of shall be paid or transferred
directly by way of dividends, bonus, profits or in any manner whatsoever to the present or future members of the
society or any person, through any one or more of the present of the future members. No member of the
society shall have any personal claim on any movable or immovable properties of the society or make any profit
whatsoever by virtue of this membership.

There is a large amount of freedom to run and operate the NGO; the government seeks the compliance of the
spending of money by the NGO as per the terms of the grants.

Community Based Organizations (CBOs)

Community-based organizations (CBO’s) are nonprofit groups that employment at an area

level to enhance life for residents. the main target is to create equality across society
altogether streams – health care, environment, quality of education, access to technology,
access to spaces, and knowledge for the disabled. The inference is that the communities
represented by the CBO’s are typically at an obstacle. CBO’s are typically, and almost
necessarily, staffed by local members – community members who experience first-hand the
requirements within their neighbourhoods. Besides being connected geographically, the sole
link between staff members and their interests is usually the will and willingness to assist.
Occupational skill sets and knowledge are greatly diverse.

CORD (Chinmaya Organization for Rural Development) works with men through their CBOs
called Men and Farmers Club, also referred to as Kisan Clubs in the villages. It was the
success of the Women's Groups (Mahila Mandals) that motivated and mobilized the men and
youth to come together collectively for their own growth and that of their village.
The Chinmaya Organization for Rural Development, known as CORD, is an organization that
helps with rural development throughout India and South Asia. The Chinmaya Organization
for Rural Development, known as CORD, is an organization that helps with rural
development throughout India and South Asia. It is the service wing of Chinmaya Mission.
CORD aims to promote sustainable development in India through activities such as
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empowering women, helping with microfinancing, and forming Mahila Mandals or self-help
groups. Rather than just giving aid, CORD focuses on helping people by teaching them
necessary skills to be self-sufficient and independent.

Following are the CBOs that are nurtured by CORD over the years.

The Mahila Mandals

The Mahila Mandals are the nuclei of all CORD’s work. They are the hub from which all
program components of CORD have evolved. The objective of Mahila Mandal is to empower
women financially, socially, and politically and enhance their decision making capacity.
Regular women’s groups meetings give women both support and a platform to resolve the
challenges they face and address village issues as an empowered community group.
Some of the women leaders come forward as Village Volunteer Resource Persons (VVRPs) to
look into specific issues such as nurturing adolescent girls and children’s groups, ensuring
sanitation and hygiene in the village, mobilizing communities in local self-governance, etc.
Mahila Mandals once they mature a little are formally registered as an independent entity.

Men and Farmer’s Club

CORD works with men through their CBOs called Men and Farmers Club, also referred to as
Kisan Clubs in the villages. It was the success of the Women’s Groups (Mahila Mandals) that
motivated and mobilized the men and youth to come together collectively for their own
growth and that of their village. In 2008, CORD formally formed and registered the Farmers
Clubs with NABARD.

Adolescent Girls Group (Yuvati Samuh)

Mahila Mandals play an important role to help CORD organize adolescent girls groups called
Yuvati Samuh to mobilize and harness the energies and potential of the young girls for their
own growth and for the collective development of the village.

Children’s Group (Bal Vihar)

The aim of this CBO is to empower children. The brigade of next-generation is also sensitized
towards social issues through the Balveer (children’s army) wing of the Balvihar. Learning for
children is made interesting with games and fun. An attempt is made to improve primary
school education through Balvihars and involvement with local government schools.

Advocacy Groups

CORD has formed advocacy groups like Chinmaya Umang for the persons with disability,
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single women group, women in agriculture and local self-governance, people with old-age,
promotion of education through school management committees, etc. It also focuses on
promotion of health, nutrition, hygiene and sanitation through groups such as Village Health
Sanitation and Nutrition Committee (VHSNC). CORD also offers youth leadership programs.
The NGO and CBO have a great difference. An NGO is a non-governmental organization, a
non-profit organization. Meanwhile, the CBO is the acronym for community-based
organizations. They work on the same level and share a common goal – the welfare of society
and the people. The world surrounds by social, economic, spiritual, and emotional problems
concerning. These organizations support those who need to deal with all uncertainties more
effectively.

Self Help Group

A self-help group (commonly abbreviated SHG) is a financial intermediary committee usually

composed of 12 to 25 local women between the ages of 18 and 50. Most self-help groups are
in India, though they can be found in other countries, especially in South Asia and Southeast
Asia. A SHG is generally a group of people who work on daily wages who form a loose
grouping or union. Money is collected from those who are able to donate and given to
members in need.
Members may also make small regular savings contributions over a few months until there is
enough money in the group to begin lending. Funds may then be lent back to the members or
to others in the village for any purpose. In India, many SHGs are linked with banks for the
delivery of micro-credit.

Within a newly formed Mahila Mandal, CORD forms SHGs with ten to twenty women in
each SHG. The purpose of the SHG is to obtain microcredit from banks with, encourage
members to save, and to lend money to its members. In an informal setting, the women learn
basic financial skills. They begin with minimal contributions, learn to inter-loan, and keep
books.
They move from taking loans for their essential needs to setting up their own retail outlets
such as Guru Dhara Self-Help Group Shop. The SHGs are also forums to link family
members to other financial products- individual bank accounts, pension and insurance
schemes of the government. CORD is moving towards digitalization of the SHGs through the
e-Shakti program of NABARD (National Bank for Agriculture and Rural Development).

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