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Microfinance Institutions Network (MFIN)
MFIN - MicroSave Cash-Lite Report
Coverage Report
May 2017
Submitted By:
Perfect Relations
Media Coverage Index
S. No. Publication Name Media
1. Business Standard Print
2. The Financial Express Print
3. Divya Bhaskar Print
4. NavGujarat Samay Print
5. The Economic Times Online
6. Business Standard Online
7. The Times of India Online
8. IndiaToday Online
9. Deccan Herald Online
10. Odisha Inc Online
11. The Banking & Finance Post Online
12. NewsSuperfast Online
PRINT COVERAGE
Publication Business Standard
Edition Mumbai, Pune, Hyderabad, Chandigarh, Jaipur, Chennai, Bhubaneshwar, Ahmedabad and Delhi
Date 29th August, 2017
Page No. 04
Publication The Financial Express
Edition Chennai, Kolkata, Chandigarh, Bhubaneshwar, Bangalore, Hyderabad, Dehradun, Ahmedabad, Mumbai, Lucknow, Pune, Delhi, Kochi and Jaipur
Date 29th August, 2017
Page No. 10
Publication Divya Bhaskar
Edition Ahmedabad
Date 30th August, 2017
Page No. 11
Publication NavGujarat Samay
Edition Ahmedabad
Date 30th August, 2017
Page No. 07
ONLINE COVERAGE
Portal The Economic Times
Date 28th August, 2017
Link http://economictimes.indiatimes.com/news/economy/finance/over-60-
of-mfis-adopt-cashless-disbursement-mfin/articleshow/60260393.cms
Portal Business Standard
Date 28th August, 2017
Link http://www.business-standard.com/article/finance/over-60-microfinance-
institutions-move-to-cashless-loan-disbursement-mfin-
117082800827_1.html
Portal The Times of India
Date 28th August, 2017
Link http://timesofindia.indiatimes.com/business/india-business/over-60-of-
mfis-adopt-cashless-disbursement-mfin/articleshow/60260333.cms
Portal IndiaToday
Date 28th August, 2017
Link http://indiatoday.intoday.in/story/over-60percent-of-mfis-adopt-cashless-
disbursement-mfin/1/1035635.html
Portal Deccan Herald
Date 28th August, 2017
Link http://www.deccanherald.com/content/630278/over-60-nbfc-mfis-
adopted.html
Portal Odisha Inc
Date 29th August, 2017
Link http://odishainc.com/nbfc-mfis-moving-towards-cash-lite-payment-
ecosystem-mfin-microsave-report/
Portal The Banking & Finance Post
Date 29th August, 2017
Link http://bfsi.eletsonline.com/rise-of-cashless-economy-nbfc-mfis-go-high-
on-e-payments/
Portal NewsSuperfast
Date 30th August, 2017
Link https://newssuperfastblog.wordpress.com/2017/08/30/nbfc-mfis-
moving-towards-cash-lite-payment-ecosystem-mfin-microsave-report/
NBFC-MFIs moving towards cash-lite payment ecosystem: MFIN-MicroSave
report
Over 60% NBFC-MFIs have adopted cashless disbursement models
Adoption of cash-lite is likely to bring down cost for the NBFC-MFIs in the long term
Aadhar based payment systems to enable easier adoption and low cost cashless transactions
New Delhi, 28, August, 2017: Microfinance Institutions Network (MFIN), the premier industry
association and Self-Regulatory Organization (SRO) for the microfinance industry in India has recently
released a study on adoption of cash-lite models among microfinance institutions in India. According to
the report, over 60% if NBFC-MFIs have adopted cashless methods for disbursements. In the fourth
quarter of FY 2016-17, 39% of total disbursements were reported to be cash-lite transactions. While
NBFC-MFIs are increasingly adopting cashless methods for disbursements, only 5% of cashless
repayments point at slower pace of adoption by customers. MicroSave was the research partner for the
report. KfW and SIDBI had also extended their support in completion of the report.
The transition of NBFC-MFIs to cashless payment modes has been largely attributed to benefits of risk
mitigation and increased operational efficiency that includes improved cash management practices,
increased safety and staff productivity. According to Ratna Vishwanathan, CEO, MFIN, “Demonetisation
and government’s push to adopt digital transactions have helped in NBFC-MFIs’ transition to cashless
modes. Moreover, It has also helped in increasing awareness about non-cash transaction methods
among microfinance beneficiaries even in the rural areas. This has definitely accelerated adoption rates
both at NBFC-MFI and client ends. While many NBFC-MFIs already do significant share of transactions
through cashless modes, many other institutions have initiated pilots to analyse the best suitable
methods for them. As the microfinance industry moves towards digitisation, we believe it will lead to
achievement of financial inclusion in the true sense through providing seamless and quicker processing
of credit to clients along with increasing cost benefits for NBFC-MFIs in the longer term. It can create an
enabling platform to diversify product offering, target new customer segments and even modify the
operating model.”
While 88% of the total cashless disbursements were made through NEFT/IMPS by NBFC-MFIs in 2016-
17, cheques (50%) and ECS (33%) were the preferred modes of repayments by microfinance clients.
Other transaction methods that were used by both NBFC-MFIs and clients included, Aadhar enabled
payments, mobile wallet and pre-paid cards. According to the report, usage of Aadhar Payment Bridge
System (APBS) for disbursements has been quite low (4%) in 2016-17 but it may prove to be suitable for
MFIs in the long run with its low transaction cost and faster roll out benefits. Similarly, Aadhar Enabled
Payment Systems (AEPS) and UPI may provide quicker, safe and secure transactions to customers for
repayments along with easier adoption.
While the adoption rate of cashless transactions is increasing, infrastructure and connectivity problems
still adversely affect the growth. Another major challenge is that for a typical MFI client both income and
expenditure avenues are through cash. Therefore, lack of value proposition of ‘non-cash’ transaction
coupled with the low levels of usage of bank accounts, creates hassle for customers to adopt or prefer
cash-lite transactions. Higher cost of technology also affects operating costs. As per the report, there is a
low level of understanding among the MFI clients and lack of adequate handholding leads to lower
adoption of cash-lite transactions. To enable greater acceptance of cash-lite models at the customers’
end, there is a need to bring in behavioural change towards the usage of bank accounts.
About Microfinance Institutions Network
Microfinance Institutions Network (MFIN) is the premier industry association and Self-Regulatory Organisation (SRO) for the microfinance industry in India and its current membership/associates consists of 48 leading NBFC (Non-banking Financial Company) Microfinance Institutions (MFIs) in the country. MFIN seeks to work closely with regulators and other key stakeholders to achieve larger financial inclusions goals through microfinance.
For more information, please contact-
Pooja Chauhan
Mob: 9971627588 | Email- [email protected]
Shubhra Rai
Mob: 8505971763 | Email- [email protected]