community finance is a powerful tool for building inclusive and resilient economies, where everyone has access to the financial tools and resources they need to thrive. Whether through microfinance institutions, community development finance institutions, or other grassroots initiatives, community finance plays a crucial role in creating a more equitable and sustainable future.
Community means all the forest dependent people who is selected from Forest Conservation Village (FCV) under collaborative forest management for the improvement of livelihood through project support.
Finance means – Financial Planning, Co-ordination, Control and its application. Here Fund owned by the community is
(a) Group Savings
(b) Community Development Fund / Livelihood Development Fund and
(c) Fund from other sources like Community Patrolling and Capacity Building Fund.
Source of funds based on-
- Group saving
- Internal fund
- LDF and
- CDF
Community finance is a financing process, which covers fund collection, planning, fixation of savings, service charge and the mode of distribution, fixation of loan installment numbers, duration of repayment and loan activities etc. being decided in consultation with the poor and extreme poor forest dependent community. In this process, the forest dependent community is entitled to take decisions that provide them with highest level of benefits in terms of livelihood diversification, income generation poverty eradication through implementation various Alternative Income Generating (AIG) at community level.
Objectives of Community Finance
- To ensure the fund flow for selected community members in implementing their livelihood promotion activities in order to improve their lives and livelihood.
- To ensure the smooth operation of Community Development and Livelihood Development Fund (Internal) activities.
- To motivate the selected community members for making regular savings (Fixed/Equal Rate) for supporting poor community members and themselves.
- To ensure livelihood promotion through alternative income generating activities by using their own savings and Livelihood Development Fund among the selected community members through revolving this increasing amount of money.
Those who are involved in Community Finance:
Committee involved in community financing process mechanism-
1. Forest Protection & Conservation Committee (FPCC)
2. Village credit & Saving Committee (VCSC)
3. Finance & Accounts Committee (FAC)
4. Procurement Committee (PC)
5. Social Audit Committee (SAC)
Bengali 