Varanasi-based Utkarsh Micro Finance was planning to route all microfinance transactions through banks
after graduating into an SFB in the long run. However, now the MFI is looking to implement the plan ahead of schedule.
“We’re planning a soft launch on January 14,” said Govind Singh, managing director, Utkarsh Micro Finance. Rough estimates suggest that disbursements worth Rs 250 crore and collections worth Rs 200 crore are undertaken entirely in cash in the MFI sector on a daily basis, says Ratna Vishwanathan, CEO of Microfinance Institutions Network.
Between November 9 and 18, the sector was due to collect Rs 2,100 crore. Against this, the MFIs could collect about half or about Rs 1,100 crore dues.