As per data presented in the latest edition of Economic Survey, 84% of women’s working hours are dedicated to activities they aren’t paid for. Women in our society have traditionally been dealt an unfair hand in all aspects of life. The financial independence and the freedom it brings has been a distant dream for a vast majority of females even after more than 7 decades of independence.
The already dilapidated financial status of women has been further worsened due to the global pandemic. A research by Azim Premji University states that women were 7 times more likely to lose jobs in the lockdown than men.
The dependency on family born out of unpaid nature of household work and uncertainties born out of disruptions such as this pandemic call for a robust mechanism of financial security. Credit infrastructure has been ramped up but access to the same remains limited due to lack of financial literacy. The pandemic has disrupted the microfinance facilities that were relatively easier to access.
In the face of all these challenges, many women are defying the odds by resorting to an innovative community based financial pooling model called the committee system. The Voices explores this innovation.
Rakhi, a 40 yr old widow, runs a food cart in Trilokpuri, New Delhi. She is a part of an informal committee of women who pool a fraction of their income and savings from home-based work such as stitching etc., they use that amount to further fund the aspirations and household needs of other underprivileged women, and widows living in nearby slums.
Why Pooling?
Apart from the unpaid nature of work, the quest for such financial pooling systems is rooted in the nominal ownership of women over their own salaries. Patriarchal conventions make many earning women ‘give‘ their income to the ‘man’ of the house. The surrendering of income snatches away from them, the opportunity to secure financial independence and autonomy in decision making.
Rajni, a house-maid in Delhi confirms, “I have to hide half my income from my family. I work in six houses but I tell them only about 3. This helps me to save some money for myself and my children. Else, my husband spends all of it in the house. Yes, I am beaten at times by him if he discovers that I am hiding a part of salary.”
Financial insecurity born out of irregular nature of work and a zeal to excel in Entrepreneurial adventures add up to reasons for pooling of finances by these women.
The economics of empowerment
Committee system has been practiced for a long time now. Women members of the committee are required to pool their routine and non routine savings. The sum total amount is used to help members of a committee, and at times members outside from the committee to have access to interest-free loans for a variety of purposes.
Anu, a member of another such committee, explains, “This is a friendly arrangement. Unlike systems where people have to give interest, here everyone contributes a fixed amount into the pool monthly. In the first month the one who needs the money the most, gets it. Or we simply decide the first recipient of the pooled money by a lucky draw. So, we give in as much as we get. Saving a big amount at once on an individual level is a tough ask for a woman. Committee helps us to achieve our goals by pooling our individual savings.”
The drawn amount nourishes livelihoods, at times fuels Entrepreneurial spirit. Manju, a member of a Delhi based committee, owner of a small tailoring shop says, “This has helped me sustain my shop and even grow it now. After my husband passed away, these women supported me and helped me get through a financial slump. I never had to ask anyone for money.”
Rajni, a house maid and a member of such committee tells The Voices “I will buy books and new clothes for my children, when I draw money from the committee. I will be saving the unspent amount. This is one thing, our husbands can’t control as they don’t know anything about it. All the money we pool and save, is our own.”
This system has emerged as a boon in the post pandemic times for the families of migrant labours, daily wage workers and domestic workers in regions of Bihar as well.
Manju Devi is domestic helper from Darbhanga, Bihar. She tells The Voices “My mother in law, sister-in-law along with other women in the locality save Rs 10 each on weekly basis. A share of the collected amount is given to the members as per our needs. It helped us a lot in COVID times as many of us weren’t getting work on regular basis.”
Cashing in the camaraderie
The committee is their inner circle born out of the bonhomie shared by members. Kiran, who has been with one such grouping for 5 years now, says, “We have become like a family. We do yoga together, help each other with counseling and makes sure no one is left alone during a distressing phase of life. We are there to help each other.”
All that these women want, is to help each other. Beyond the limiting peripheries of caste and social barriers, it is the spirit of womanhood which binds them together in an endeavor which enables many to stand on their own. “We work all day at home. But no one sees it as work. Hence, we aren’t paid. We want to be free of family pressures and experience what it feels like to spend our own money. Our group wants to help out as many women as possible to stand on their feet as we can”, says Nirmala, a member of another Delhi based committee.
Another group of 20 ladies from an apartment building based in Indra prastha Extension, New Delhi have formed a committee to serve a social cause. The members pool their savings to fund any contingencies that the domestic helps working in the building might have. Apart from utilizing the funds for healthcare and routine education assistance, the committee also funds the higher education of the children of domestic employees working in the building.
This innovative form of saving money is helping these women create a micro-finance community of their own, which is no less than a holy grail, especially during the times of a persistent global pandemic. Apart from financial independence this is also a saga of an emotional, social and cultural revolution.
Story Edited By: NK Jha
Image: www.artworksforchange.org