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Sun setting on sex workers’ financial hope

The Sangini Women’s Co-operative Society, India’s first and only banking institution exclusively catering to sex workers, is in dire straits due to lack of funding and money for administrative expenses.

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It’s been a lifeline for sex workers for the last four years. But now it’s struggling for funds. The Sangini Women’s Co-operative Society, India’s first and only banking institution exclusively catering to sex workers, is in dire straits due to lack of funding and money for administrative expenses. 

The bank, located in the 10th lane of Kamathipura, the city’s oldest and largest red light district, was set up in 2007 by Population Services International (PSI), a Washington-based NGO. The NGO paid the office rent and salaries to the staff. However, the institution is now facing a crisis with half of its staff leaving their jobs. Their contracts, which expired on December 2010, have not been renewed due to lack of funds.

Dr Shilpa Merchant, who was regional director of PSI, has moved out of the organisation to become a public health consultant. “The bank was doing well till 2010. The biggest success of the institution was that the sex workers were able to save money,” she said. “However, we don’t have sponsors to take care of the administrative expenses. On humanitarian grounds, PSI paid salaries to the staff. But without some support, the institution may have to shut down.”

When it started, Sangini offered services to sex workers that were unavailable at other banking institutions. It was the only banking group that did not require them to submit numerous documents while applying for a savings account. Sangini would just take photographs and create an account. Customers could deposit as little as Rs5 in their accounts. Some services like collection of savings were available door-to-door.

Most sex workers lost their earnings to pimps and touts. This left them with no savings. Whenever they needed money, they took loans from money lenders, who charged exorbitant interest rates.

Sangini has released loans of around Rs40 lakh to sex workers and enjoyed a 75% recovery rate. Every account holder is eligible for a loan of only Rs15,000. Till date, most women have savings of Rs15,000-20,000 in their account.

Sangini has two accountants, a manager and another person to handle software. The bank also had five agents who visited brothels daily to collect the savings of sex workers.

There are also four inter-personal co-ordinators who visited the red light areas in the city to encourage sex workers to open savings account and also solve their queries regarding the bank.

Merchant told DNA that four staff members have quit their jobs.

“They promoted the idea of savings among sex workers. There are just three of the original five agents still working with us. After quitting, my colleague and me are still helping the bank without taking money from the sponsor NGO,” Merchant said.

“This was a unique project and we have not given up yet. Now, we are barely able to meet the working costs and we want to do more than this. It is true that we are searching for sponsors to help us with administrative expenses. We are looking forward to some micro-finance group or bank to help us. We also have plans to start some education programme for the children of sex workers,” said Atul Kapoor, programme director, PSI.

After it was set up, around 4,000 sex workers opened savings accounts with Sangini. While the co-operative society held no promise of liberating the sex workers from poverty, they provided a facility where they could save their money to educate their children and also send savings to their families back in home towns and villages.

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