Demonetisation halts disbursements by MFIs

| | Kolkata
  • 0

Demonetisation halts disbursements by MFIs

Saturday, 19 November 2016 | PTI | Kolkata

The demonetisation of old high value currency notes has brought disbursements by micro-finance institutions (MFIs) virtually to a standstill.

MFIs like Bandhan and Village Financial Services are not being able to make any disbursements to self-help groups (SHGs) since November 9.

This is true for the entire MFI industry as well, they said.

“Since small notes are not available, we are not being able to make any disbursements to the SHGs,” MD of Bandhan Bank C S Ghosh told PTI on the sidelines of a seminar on MFI here on Friday.

Bandhan Bank, formerly Bandhan Financial Services, is also into MFI lending besides extending normal banking credit.

Ghosh said while the repayment by MFIs are on, disbursals have stopped.

“This is a temporary problem. Things will become easier once the new `500 currency notes are pumped into the system,” he said adding “the entire MFI segment is facing this problem.”

Village Financial Services chairman Ajit Maity said, “Disbursements have been put on hold since November 9. Although it is creating some problem among the SHGs, this is temporary in nature.”

“This is expected to continue for some more time,” Maity added.             

Sunday Edition

The beautiful Goa Glitch

11 April 2021 | Navneet Mendiratta | Agenda

A rare Jugalbandi

11 April 2021 | Mohammad Irshad | Agenda

For Your Partner

11 April 2021 | Excerpt | Agenda

Astroturf | Controlling the monkey mind

11 April 2021 | Bharat Bhushan Padmadeo | Agenda

Just play

11 April 2021 | MUSBA HASHMI | Sunday Pioneer

Talktime | ‘I like the darker side of people’

11 April 2021 | MUSBA HASHMI | Sunday Pioneer