Issuing banking licence to microfinance institutions (MFIs) will bring down the cost of borrowings substantially and also help in the penetration of banking activities in un-banked areas.
“MFIs have exposure to 26-30 million households, covering an area that banks find very difficult to go,” SKV Srinivasan, Executive Director, IDBI Bank, told Business Line on the sidelines of an MFI conclave. Srinivasan said, “MFIs are more close to people and, therefore, in a better position to propagate financial literacy than banks.”
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.