All MFIs are required to maintain a capital adequacy ratio of 15%, according to the central bank’s norms. “The agency expects MFI borrowers to reprioritize their expenses on account of a cash flow mismatch in the next few weeks. The India Ratings report said that, in the short term, microfinance borrowers will switch to regular banking and in the long term will park their savings with MFIs that turn into small finance banks. Account usage and savings behaviour is likely to significantly improve after the demonetization move,” said Sucharita Mukherjee, chief executive of IFMR Holdings. Among the eight, Equitas’s small finance bank has started operations and Suryoday Microfinance Pvt.

Source: Mint November 17, 2016 19:27 UTC