Microfinance in India – Is Business Correspondent the Way Forward?

• by Manoj Sharma
• Sep 14, 2011
• 1 min
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This Note explores the shape and direction of the future of microfinance sector in India and proposes a model where MFIs act as agents of banks.

This Note explores the shape and direction of the future of microfinance sector in India and proposes a model where MFIs act as agents of banks.

It tries to make a win-win case wherein clients benefit from the wider bouquet of product offerings; MFIs de-risk their operations and banks get intermediaries with closer to the ground presence and a more equitable risk – return ratios.