The microfinance business works on a model of collection and disbursement. Traditionally it has been dependent on cash because loans are small and so are repayments. When demonitisation was announced, this cycle was disrupted. At stake were the finances of 40 million women. Their problems were far removed from the focus on queues at banks in cities.
But in three weeks collections have reached 70 percent or so. Women have stood in line and withdrawn their small sums to keep the wheels of microfinance turning. There are, of course, other issues like loans put in accounts that can&rsquo. . .
