Social Audit Standard (SAS) 1300
Promotion of financial inclusion
(SAS 1300 should be read in conjunction with “Preface to the Social Audit Standards” and “Framework for
the Social Audit Standards”, issued by the ICAI)
SECTION I – INTRODUCTION
Objective and Scope
1.10 This Social Audit Standard relates to the thematic area of “Promotion of financial inclusion”. The Standard aims to provide the Social Auditor with the necessary guidance in relation to independent impact assessment engagement of Social Enterprises engaged in promotion of financial inclusion to make financial services available, accessible, and affordable to all the citizens in a safe and transparent manner and to support inclusive and resilient multi-stakeholder led growth, and the audit steps and procedures that should be applied while conducting the social impact assessment. The Standard sets out the minimum requirements to be followed while conducting impact assessment. Laws or regulations may establish additional requirements which should be followed as applicable.
SECTION II – PROCESS OF SOCIAL AUDIT
1.20 The stakeholders that may be approached for obtaining data include:
> Direct beneficiaries
> Immediate family members of the direct beneficiaries
> Management personnel of banking and financial institutions providing services
> Trainers imparting knowledge/ training/ awareness
> Funding entities, Government and related institutions
> Monitoring Agency
> Key program officials of the entity, etc.
1.30 The Social Auditor should conduct a desk review of existing documents to gain further insight into the evaluation procedure and impact assessment. Such documents, in relation to Promotion of Financial Inclusion, may include the following:
Inspection & Personal Interviews
1.40 Besides desk review, the Social Auditor should also consider conducting physical inspection and personal interviews to get firsthand assessment of impact.
1.50 The Social Auditor should review the evaluation questions addressed through Questionnaires, In-depth interviews and Focused Group Discussions to assess the responses received from various stakeholders and to understand what has changed. This would help the Social Auditor in forming the views on the following aspects:
Such questions, in relation to Promotion of financial inclusion, may cover the following aspects:
(a) Composition of the participants
(b) Quality of benefits provided
(c) Suggestions / Feedback
Key Metrics for Evaluation of Project/ Program
1.60 The Social Auditor should review the project/ program documents to frame the evaluation criteria for assessing impact. Such key metrics may be collated from base-line, mid-line (monthly / quarterly) and end-line assessment (if available), respectively at the beginning, middle and end of the reporting period / project / program to effectively understand and evaluate impact.
Assessment of Evaluation Criteria (Illustrative Key Performance Indicators)
1.70 The Social Auditor should identify the quantitative and qualitative evaluation criteria or the key performance indicators against which the impact has to be assessed.
Such criteria in relation to Promotion of financial inclusion may include any of the following aspects:
|Number of people having an account (by themselves or together with someone else) with a banking or financial institution along with demographics and geographical bifurcation
|Number of people with at least 12 deposit and withdrawals from their account in a year
|Number of deposit accounts opened
|Number of wallet accounts generated and amount of monetary transactions
|Number of people with loans outstanding from a bank or financial institution along with demographics and geographical bifurcation
|Number of insurance policy holders segregated between life and non-life insurance
|Number of digital transactions entered along with demographical and geographical bifurcation
|Number of people using mobile banking/ internet banking
|Number of debit and credit card holders and number of people using a debit or credit card for making payments along with demographical and geographical bifurcation
|Number of people receiving salaries/ wages through direct transfers into their account
|Amount of savings along with demographical and geographical bifurcation
|Micro Small and Medium Enterprise (MSME) account holders with type of account details
|Loans/ borrowing facilities to MSME holders
|Number of branches in a particular area
|Number of ATMs/ PoS terminals in a particular area
|Number of financial and digital literacy camps conducted and attendance thereof
|How many (number) people received the benefit?
|Improvement in Income levels (pre and post) – program intervention? e.g. Less than Rs. 5000 p/m before Intervention and More than Rs. 5000 p/m after Program intervention
|Improvement in Savings (pre and post) – program intervention? e.g. Less than Rs. 20003000 p/m before Intervention and More than Rs. 3000 p/m after Program intervention
|How did you use the increased savings? e.g. Investments, Buying assets, Children’s education, Loan repayment. Household needs etc.
|Asset Ownership (pre and post) – program intervention? A list of assets could be created like TV, Fridge, Cycle, 2-wheeler Motorcycle, 3-wheeler, 4-wheeler, Water connection, Electricity connection, Gas connection, etc to understand ownership of assets pre and post programmatic intervention.
|Building knowledge and awareness – Increased financial literacy, market conduct and consumer protection and increased standard of living may be used to assess the improvement in economic conditions.
The following indicators may be used to assess the same:
|Improvement in Decision Making – Ability to make decisions in household affairs when buying assets for the family, taking decisions on children education, ability to spend independently without anyone’s approval
|What was the change experienced by the beneficiary stakeholder?
|How long did they experience the change?
|Do you see any change in the way society treats you because of your participation in Financial Inclusion program?
|Which aspect of the Financial Inclusion program helped you the most? What has changed in your life due to the financial inclusion programme?
SECTION III – ASSESSMENT OF CHALLENGES AND LIMITATIONS
Challenges / Areas for improvement
1.80 The Social Auditor should identify the challenges faced by the stakeholders and the areas for improvement based on the suggestions and feedback received from them, which might have an influence on the impact assessment. Some of the examples of commonly faced issues in relation to Promotion of financial inclusion may include the following:
Any significant issues observed during the assessment, that may influence the user of the Impact Assessment in decision making, should be highlighted by the Social Auditor in the Social Audit report.
Limitations of the assessment
1.90 The Social Auditor should identify the inherent limitations of the evaluation process which might have an influence on the impact assessment. Some of the examples in relation to Promotion of financial inclusion may include the following:
Any significant limitations observed during the assessment, that may influence the user of the Impact Assessment in decision making, should be highlighted by the Social Auditor in the Social Audit report.
SECTION IV – APPENDIX
Taxonomic classification of areas and sub-areas for Social Objectives
(Relating to Promotion of financial inclusion)
|Promotion of financial inclusion
To Read Related post Social Audit Standard
|SAS 100 Eradicating hunger, poverty, malnutrition and inequality
|SAS 200 Promoting health care including mental healthcare, sanitation and making available safe drinking water
|SAS 300 Promoting Education, Employability, and Livelihoods
|SAS 400 Promoting Gender Equality, Empowerment of Women & LGBTQIA + Communities
|SAS 500 Ensuring environmental sustainability, addressing climate change including mitigation and adaptation, forest and wildlife conservation
|SAS 600 Protection of national heritage, art and culture
|SAS 700 Training to promote rural sports, nationally recognised sports, Paralympic sports and Olympic sports
|SAS 800 Supporting incubators of social enterprises
|SAS 900 Supporting other platforms that strengthen non-profit ecosystem in fundraising & capacity building
|SAS 1000 Promoting Livelihoods for rural and urban poor including enhancing income of Small and Marginal Farmers and workers in the non-farm sector
|SAS 1100 Slum area development, affordable housing and other interventions to build sustainable and resilient cities
|SAS 1200 Disaster Management, including Relief, Rehabilitation and Reconstruction Activities
|SAS 1300 Promotion of financial inclusion
|SAS 1400 Facilitating Access to Land and Property Assets for disadvantaged Communities
|SAS 1500 Bridging digital divide in internet and mobile phone access, addressing issues of misinformation & data protection
|SAS 1600 Promoting welfare of migrants and displaced persons