Background & Concept

The concept of establishing an inclusive and wide-ranging financial institution was envisioned by the Rural Self-Reliance Development Centre (RSDC), an NGO dedicated to building a self-reliant and self-dependent society. Over the years, RSDC successfully established and promoted 171 cooperatives, known as Swawalamban Sahakari, across 12 districts. These cooperatives aimed to meet local financial needs and stimulate economic activities by consolidating community resources.

Initially, RSDC planned to establish a financial institution with RSDC and Swawalamban Sahakari as promoters, along with other individuals. However, due to legal restrictions preventing cooperatives from directly promoting financial institutions, the plan was adjusted. RSDC collaborated with erstwhile Lumbini Bank Ltd. (now Global IME Bank Ltd.) and 172 individuals from 40 districts to establish a "D" class financial institution, now known as RSDC Laghubitta Bittiya Sanstha Ltd (RSDCMF).

Before RSDCMF's establishment, wholesale lending organizations in Nepal primarily operated in urban and semi-urban areas. As a result, cooperatives and microfinance institutions (MFIs) in rural areas had little or no access to resources of funds. RSDCMF was created to bridge this gap, focusing on providing wholesale lending to cooperatives and MFIs in remote and underserved areas, while also extending support to urban and semi-urban regions.

Today, RSDCMF continues its mission to enhance financial inclusion and support economic growth in Nepal's rural communities through cooperatives and retail microfinance, providing wholesale funds and empowering staff and their members.

Mission

Promotion, empowerment and development of local institutions to strengthen economically disadvantaged rural communities.

Vision

Formation of Self-reliant and Self-dependent society.

Goal

To create such an environment where rural deprived communities will be able to fulfill their financial needs from their own institutions.

Values

• Teamwork
• Efficiency
• Customer Care
• Compliance
• Trustworthy

Brief Introduction

RSDC Laghubitta Bittiya Sanstha Ltd. (RSDCMF) is a national-level "D" class financial institution, registered under the Company Act-2063 and the Bank and Financial Institution Act-2063. It is licensed by Nepal Rastra Bank and stands as the third institution of its kind, as well as the first and only wholesale microfinance institution with its registered office outside the Kathmandu Valley. RSDCMF began operations on 26th Bhadra 2070 (11th September 2013) from Butwal, located in western Nepal. At its inception, the institution had an authorized capital of NPR 20 crore, issued capital of NPR 10 crore, and paid-up capital of NPR 6 crore.

Currently, the ownership structure of RSDCMF consists of 51% capital held by its promoters and 49% allocated to the public as ordinary shares. The major promoters include the Rural Self-Reliance Development Centre, Global IME Bank Limited, and individual investors from various districts across Nepal.

Present Capital Structure:

RSDCMF is dedicated to fostering a self-reliant and self-dependent society by strengthening local institutions, particularly cooperatives. Its mission is to empower these institutions to meet local financial needs and stimulate economic activities in rural areas, paving the way for sustainable development and financial inclusion.