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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


  • 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


  • Portal The Economic Times

    Date 28th August, 2017

    Link http://economictimes.indiatimes.com/news/economy/finance/over-60-



  • Portal Business Standard

    Date 28th August, 2017

    Link http://www.business-standard.com/article/finance/over-60-microfinance-




  • Portal The Times of India

    Date 28th August, 2017

    Link http://timesofindia.indiatimes.com/business/india-business/over-60-of-



  • Portal IndiaToday

    Date 28th August, 2017

    Link http://indiatoday.intoday.in/story/over-60percent-of-mfis-adopt-cashless-



  • Portal Deccan Herald

    Date 28th August, 2017

    Link http://www.deccanherald.com/content/630278/over-60-nbfc-mfis-



  • Portal Odisha Inc

    Date 29th August, 2017

    Link http://odishainc.com/nbfc-mfis-moving-towards-cash-lite-payment-



  • Portal The Banking & Finance Post

    Date 29th August, 2017

    Link http://bfsi.eletsonline.com/rise-of-cashless-economy-nbfc-mfis-go-high-



  • Portal NewsSuperfast

    Date 30th August, 2017

    Link https://newssuperfastblog.wordpress.com/2017/08/30/nbfc-mfis-



  • NBFC-MFIs moving towards cash-lite payment ecosystem: MFIN-MicroSave


    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 governments 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- pchauhan@perfectrelations.com

    Shubhra Rai

    Mob: 8505971763 | Email- shubhra.rai@perfectrelations.com



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