Corporate Social Responsibility Policy


Village Financial Services Ltd (VFS) is one of India’s leading NBFC-MFIs in the Eastern part of India, providing cutting edge products and customer service to its member-base. VFS is engaged in the business of lending to women borrowers under ‘Joint Liability Group (JLG) based individual lending’ model. The micro finance business of VFS has been beneficial to many poor families by providing them credit, helping them become economically self-sufficient, sensitizing women about empowerment issues and bringing about a qualitative change in them and their families.

VFS prioritizes financial inclusion over offering a larger bouquet of financial product offerings. It offers a complete range of financial and non-financial services such as loan funds, community support and institution building support so as to facilitate the growth and development of the underprivileged rural and urban population into financially sustainable entities.

Focus Areas

The Company constantly strives to ensure strong corporate culture which emphasizes on integrating CSR values with business objectives. It pursues initiatives to eradicate hunger poverty; promoting preventive health care and making available safe drinking water; promoting education, including special education, employment enhancing vocational skill training for women , promoting gender equality , programs for empowering women and projects for environmental protection . Village CSR activities span five key areas and our single-minded goal here is to holistically approach poverty reduction and bettering quality of lives through social development projects.

  • Community infrastructure development projects:

Minor constructions and renovations such as bus stands (waiting sheds), public parks, schools and anganwadis, public toilets, water connections and public taps, public library, Construction of foot over bridges, reconstruction / renovation of existing damaged infrastructure etc.

  • Environmental Projects:

Ensuring environmental sustainability, recharge-pit for bore wells, solar lamps at public places (e.g. Government hospitals), conservation of natural resources and maintaining quality of soil, air and water.

  • Public amenities, Health and Hygiene
    • Safe drinking water facility at public places (bus stand, schools, hospitals etc)
    • Safety for public (fencing electric transforms, road signals)
    • Public health and hygiene (supporting PHCs & maternity homes, cleaning public places, clearing garbage dumps, providing dust bins, improving drainage, area spraying for Malaria, Chikengunya, Dengue, public awareness programs etc)
  • Promoting Education

Providing facilities in schools & Anganwadis, Initiatives for Girl child education, merit scholarships for technical education.

  • Social Welfare

Relief programs and facilities to orphanages, old age homes, mentally & physically challenged personals etc.

  • Any other projects that are relevant and qualifies for CSR activities under the Companies Act, 2013.

CSR Committee

The Board of Directors of Village has constituted a board committee for CSR called as Corporate Social Responsibility Committee which is constituted by at least One Independent Director and Two Non Independent Directors. The CSR committee will review the progress of CSR activities and the funds utilized with impact achieved on a periodical basis.

Sanctioning Process

The Company shall prepare an Action Plan in the beginning of every Financial Year containing the amount it is required to spend in that Financial Year as well as the tentative allocation of funds for the Financial Year under different heads of activities, as per the CSR Policy of the Company and the relevant provisions of the Companies Act, 2013.

The Action Plan shall be placed before the CSR Committee and the Board of Directors of the Company for approval.

Implementation Process

CSR activities would be implemented by VFS by direct funding, through registered Trusts/Organizations, agency – either Government or Private, or in such other manner as it may deem appropriate, expedient and beneficial. All CSR projects, programmes, activities or expenditure will always be undertaken by the Company in India. VFS may also utilize the services of Village Foundation for Social Services or with other NGOs/ organizations for identifying, implementing and monitoring of projects, as and when required. The Company may also coordinate with the other Group Companies/ Associate Companies so as to take a joint approach in CSR activities. However, in all such cases it has to be ensured that each such joint projects/ modules of projects may be specifically identified for each such Group Companies/ Associate Companies.

Monitoring Process

The Monitoring process of CSR activities will be determined by the CSR Committee on a case-to-case basis depending upon the nature of the CSR activity and the manner of implementation. Progress of identified CSR projects would be monitored by the CSR Committee on a periodical basis.

Reporting & Display

CSR activities will form part of the company’s Director’s Report. The reporting would be in the format prescribed under the Companies Act, 2013 and the Rules in respect thereof. The CSR Policy will be reviewed annually by the board and any modification/ amendment to the same can be made only with the approval of the board. The annual report of CSR activities along with the contents of the CSR policy of the Company shall be displayed on the Company’s website.