This note discusses about savings as an important and effective strategy for poor households to avoid potential loss of economic status or independence as a result of a crisis. It also provides a corollary to the theorem “poor cannot save” through various demonstrations in the country; the most successful among these is the SHG Bank linkage. It highlights the legal constraints of the present MFIs in accessing savings services from the clients, and efforts by the regulators in India in this direction such as introduction of Banking Correspondents. The note concludes by highlighting advantages which all – banking institutions, microfinance clients and MFIs would gain due to recommended collaboration between Banking Correspondents and MFIs.

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