An enquiry in to the decline of ‘Panampayattu’

Panampayattu, a social collateral based indigenous finance system, existed in Malabar, is about to end for its inability to cater to the changing needs of the society. Though fast approaching its exit, the system has a history of having made great contribution to the economic and social development of the area. Being most appropriate for fostering saving habit among wage earning segments, the system may suit the times if properly modified. This paper attempts to understand the reasons for the decline of Panampayattu.