Dr.Prabhakar, alias Ron Puth, a US citizen and an Indian born professor from Washington DC, U.S.A came to know in March, 1995 about the success story of Grameen Banking System, brilliantly conceived and meticulously executed by Dr. Muhammad Yunus, an economic professor from Bangladesh. The Grameen Banking System, which has been lauded by international financial community, takes micro-credit to the doorsteps of the poorest of the poor and needy rural women, as no banking system reaches out for them. Here the idea that credit is a fundamental human right struck him.

Dwelling of a beneficiary

Encouraged by this innovative concept and the field experience in Bangladesh, Dr. Prabhakar founded SRI (Society for Rural Improvement) in February, 1996 and committed himself to replicate the Grameen Banking System. After three years, SRI has expanded its clientele base to 500.

SRI was registered under the Govt. Societies Act as a charitable and non-profit Trust on 26th, February 1996. After several meetings with orientation, motivation, education and training about the basic concept, principles, objectives and functions of Grameen Banking System, centers No.1 & 2 were established at villages of Mathakode and Toompana, Kollengode, Palakkad (A District of Kerala in India) with 10 women members at each center.

The first disbursement of loans to these 20 beneficiaries was done by Presidents of village Panchayats on 4th May 1996. Rs.50,000.00(US $1,500.00 approx.) and Rs.37,000.00(US $1,150.00 approx.) were disbursed at the center of Mathakode and Toompana respectively. The average size of loan was Rs.5,000.00 (US $150.00 approx).

Beneficiaries were carefully and painstakingly screened and selected based on need, desire and flexible poverty criteria.

Beneficiaries in the best center of SRI rewarded during the 3rd anniversary function

• To start with, the initial investment and operating capital has been provided by Dr. Prabhakar himself.
  
• US$ 1,500.00 (Rs. 50,000.00 approx.) was donated by, (AID) Association for India's Development, a voluntary students association based at University of Maryland USA on 1st of July 1996.
• US$ 50,000.00 (Rs. 20 lakhs approx.) seed capital loan was granted by Grameen Trust, Bangladesh, in three tranches, approved by Reserved Bank of India on April 1997.
• US$18,000.00 (Rs. 7,10,000.00 approx.) was received as loan from Friends of Womens World Bank(FWWB), Ahemdabad, India, out of which $ 6,250 (Rs.2,50,000 approx.) have already been repaid as per agreement.
  
• Further, the weekly repayments are recycled to additional beneficiaries.

SRI has also submitted proposal for loan funding to RMK (Rashtriya Mahila Kosh) Govt. of India agency from New Delhi, India and SIDBI (Small Scale Industrial Development Bank of India), Cochin, India, and SBT (State Bank of Travancore), Kerala, India.