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(An Islamic Microfinance Model)
Home Objectives Saving Plan Target Area Performance of RDS Documentation Center Fund
RDS Contents
Integrated Development approach
Target Area
Command Area and Baseline Survey
Target Group
Purpose, Period and Ceiling of investment
Rate of Return
Security Requirements
Savings Plan
Centre Fund
Modes of Investment
Sanction and Disbursement
Modus Operandi
Supervision, Follow-up and Monitoring
Investment under MEIS
Performance of Rural Development Scheme (RDS)
Modus Operandi

The cardinal principle of the Scheme is the 'Group Approach', Allah loves those 'who conduct their affairs by mutual consultation' (Al-Quran 42:38). For all decision-making activities, this mutual consultation is given high priority. The operational procedure in brief are as under:

Select suitable villages within 10 kilometer radius from the Branch location.

Conduct Base Line Survey to identify target group people and also to have base line situation.

Small Groups to be formed consisting of 5 members preferably of similar professions/ occupations.

The members of the Group select their Group Leader and Deputy Group Leader to co-ordinate the Group activities. After formation of the Group, the Branch Manager visits the Group and has discussion with the Group members and then he gives formal recognition of the Group through issuance of Pass Books.

A Centre is formed by minimum 2 to maximum 8 Groups. The group leaders under a particular centre select the Centre Leader and Deputy Centre Leader from amongst themselves to co-ordinate the Centre activities.

The Centre has to conduct regular weekly meeting. The weekly meetings are to be organized in a particular place, day and time as decided in the meeting of the Centre.

Centre meetings are recorded in a Resolution Book along with signature of the members (members who do not know signature must learn it). Attendance in the Centre meeting is the first requirement to become a dependable client member of the Scheme.

The Centre meetings are conducted by the Field Officers with the following agenda:

Discussion on different Islamic topics, moral values, social rights & responsibilities
Collection of Investment Installments, Personal Savings, Centre Fund etc.
  Appraisal & approval of Investment proposals, etc.

■ Investment client are selected in the Centre meeting and supplied with the application forms and other related papers. On finalization of the investment application, the list of the selected clients, supported by their  applications, are submitted to Branch Manager duly signed by the Group Leader, Centre Leader, Field Officer and Project Officer.

■ Each member of the Group has to provide guarantee against investment of other members of his Group. If any member of a particular Group does not comply with the principles or rules of the Group, then other members make him compelled to observe Group discipline, otherwise they held responsible to recover the defaulted amount and/or loss, if any.

■ Clients are allowed to take investment initially BDT 10,000/-(US$ 145) maximum after 8 weeks of his/her enrollment as active member in the group and the highest of amount of investment under the scheme is BDT 1,00,000/- (US$1,449).

■ The investment amount along with profit has to be paid back by the clients in 45 equal weekly installments.

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