Rahat : Empowering through financial resilience

Rahat, developed by Rumsan, is an open-source blockchain-based financial access platform. It aims to support the last billion in building financial resilience even before the onset of a potential climate disaster. Rahat has positively impacted over 20,000 vulnerable beneficiaries in Nepal, and Pakistan, providing digital and financial literacy support to 3,000+ individuals. Rahat has recently expanded to Indonesia. 

 

Today, more than 700 million individuals live in extreme poverty; Climate change is projected to push an additional 132 million into extreme poverty by 2030 – particularly in Sub-Saharan Africa and South Asia. Now, lack of access to financial services deepens poverty, widens the wealth gap and severely limits chances for the most vulnerable to improve their lives. Traditional financial processes are inefficient, expensive, opaque, leaving behind the people who need it the most.

 

At Rahat, they are driven by a mission to transform this narrative. Rahat leverages the power of mobile phones and blockchain technology to meet these critical needs, particularly in regions where financial inclusion remains a challenge. Rahat focuses on the following three pillars: 

 

• Financial Response and Recovery: Rahat offers efficient and transparent immediate and anticipated access to response services in humanitarian aid with Cash and Voucher Assistance and Anticipatory Action respectively. Through blockchain-based tokens, agencies can send cash, food and service vouchers directly to beneficiaries’ phones. Rahat uses smart contracts to send these vouchers and early warning voice and text messages triggered by specific parameters. These proactive measures enable timely interventions even before disasters strike, enhancing preparedness and resilience.

 

• Financial and Digital Literacy:  Rahat conducts tailored awareness campaigns and training programs for local communities and stakeholders, promoting financial and digital literacy. By empowering individuals with the knowledge and skills to make informed financial decisions, Rahat narrows the gap in access to opportunities and fosters economic empowerment.

 

• Financial Resilience: While aid helps with seasonal poverty, breaking generational poverty requires building and protecting wealth. They have expanded their ecosystem to provide smallholder farmers instant payouts through microinsurance.

Rahat employs smart contracts to validate predefined climate risk triggers, ensuring streamlined and transparent anticipatory aid delivery and instant payouts. Even unbanked beneficiaries can leverage Rahat’s blockchain-based mobile tokens, using their feature phones as digital banks for convenient cashouts.

The Rahat ecosystem includes – Aid Agencies, Beneficiaries, and Vendors. Aid agencies initiate the process by assigning digital tokens to beneficiaries’ phones or QR Code Cards. Beneficiaries receive early warning messages or notifications via SMS and automated voice recordings and then visit vendors. At the vendor, beneficiaries provide their phone number or scan the QR code to exchange tokens for cash or commodities. Vendors can redeem tokens for fiat currency, after which tokens are burnt to prevent double spending.

 

The platform offers accessible, trustworthy, and scalable financial solutions. Its integrated and modular design ensures adaptability to diverse needs. Through third-party integration APIs, Rahat seamlessly interfaces with other systems, enhancing functionality and customization. Utilizing blockchain technology ensures transparent and secure financial transactions, fostering trust and accountability. Rahat’s geographical scalability facilitates effortless expansion to various regions, enabling efficient service delivery across communities. Additionally, Rahat provides inclusive solutions tailored to vulnerable populations, promoting accessibility and empowerment through user-friendly, low-tech options.

 

Key modules of the platform include the Aid Agencies Dashboard, Vendor Mobile App,, Beneficiary Management Tool, Cash and Voucher Assistance (CVA) Management Tool, Communications & Early Warning Messaging Tool, Anticipatory Action (AA) Module, Grievance Handling, Integrated Reporting, among others. This comprehensive suite of features ensures seamless operation and effective management within the Rahat ecosystem.

Rahat has positively impacted over 20,000 vulnerable beneficiaries in Nepal and Pakistan. The organization has provided digital and financial literacy support to more than 3,000 individuals, empowering them with essential skills for managing financial resources and navigating digital platforms.

 

Recent Rahat Humanitarian Initiatives: 

 

• Cash Transfer to support flood prone communities in southern Nepal

In collaboration with the UNICEF Office of Innovation and UNICEF Nepal, Rahat supported 1,900 marginalized households with migrant workers, daily laborers and people with disability. Through Rahatm, unbanked and underbanked beneficiaries received NRs. 10,000 in cash relief through the use of their feature phones and QR code cards. This inclusive approach showcased blockchain’s adaptability in diverse settings, ensuring transparent and immediate financial assistance for the most vulnerable. Video link

 

2. H2O Wheels Distribution in Ghotki District, Pakistan:

Partnering with Tayaba, Rahat implemented a blockchain-based project in Ghotki District, Pakistan. This initiative provided H2O Wheels to 100 female-headed households, enhancing aid distribution efficiency and transparency. Through real-time monitoring via the Rahat dashboard, beneficiaries exchanged tokens for wheels, improving accountability and scalability of aid solutions. See more here

 

3.Vision Support Initiative in Indonesia:

Rahat has partnered with One Sight Foundation in Indonesia to provide vision support to vulnerable communities. By launching a referral voucher feature on their cash and voucher distribution platform, Rahat enables beneficiaries to refer others in need, thus expanding access to support. This innovative approach leverages community networks to enhance the reach and impact of aid programs. See more here

 

4. Humanitarian Anticipatory Action with Danish Red Cross:

Rahat is currently collaborating with the Danish Red Cross to implement blockchain technology in humanitarian anticipatory action work in rural Nepal. This partnership aims to streamline workflows for anticipatory cash assistance and early warning messages, ensuring that aid is delivered more efficiently and effectively in times of crisis. See more here