Ed, Did you mean Amit(Digamber Finance) and not Amir (author of OP, because I did not see him in cc)?
Based on the Indian government view, there will be new policies to make "Banking" available to everyone (previously also there are/were many policies ). Government is more interested in providing savings accounts with debit card to every citizen. But previous policies were more emphasizing on bank linkage/SHG/MFI approach than providing retail baking. And now it is time to graduate from it and think it as challenge of providing cost effective banking solution. Government did mention that "Electronic" form means Easy, Effective and Economical, I am hoping that means there will be support to build required IT infrastructure. I do not see any other alternative other than BC model to achieve this. Let us see where Mifos fits in the Indian market with respect to BC business (Lets keep aside whether BC provides NBFS services and/or retail banking services). *Ideal case:* Bankers need new software to manage these 'not so attractive accounts' with much less cost than the current available solution. And might never want merge these portfolios to their core business. And want provide the software access to these BCs to manage portfolio on behalf of the bank. In that case, need to convince banks to evaluate Mifos as one of the option. But if BC uses the software proved by bank then BC *can't* tweak the operational guidelines set by the bank. Example if loan is given on monthly repayment but BC wants to collect bi-weekly from borrower and pay to bank monthly then such operational tweaks will not be allowed by banks. *In practice:* BC most of the time want to tweak the operational guidelines set by bank in many ways case 1: Bank gives the loan on monthly repayment, BC might want to collect on bi-weekly basis. case 2: Bank gives the loan on monthly repayment, say 10th of every month, but BC may collect it on every 5th of the month. And I do *not *see them as fraudulent tricks rather they are operational optimization. Example if BC collects repayment from borrower located in village and assume BC has to deposit the money to the bank account on same day then practically this is not possible, BC has to collect few days in advance from borrower than actual due date. But, I am not sure supporting multiple views for same loan account (one from bankers point of view, i.e., original schedule and another is BC point of view, the one practiced in the filed) is legal or not. I was/am strongly believing BC will capture more market share than MFI in financial inclusion sector in India, And as of today more MFIs holds more managed portfolio than own. And for whom, interested in knowing the meaning of "Sampoorn Vittiyea Samaveshan" Sampoorn = Complete Vittiyea = Finance / Economics Samaveshan = Conference Thanks Nayan Ambali Thanks and Regards, Nayan Ambali +91 9591996042 skype: nayangambali On Sat, Aug 16, 2014 at 1:25 AM, Ed Cable <[email protected]> wrote: > Hi Amir and others in our Indian community, > > I saw this article on the SVS government-led financial inclusion > initiative for India and was wondering what the practical implications of > it were. > > What impact will this have on MFIs. It looks like more incentives will be > in place to enable a successful BC model. What do we need to do as a > software platform to support BCs? > > Here is the article: > > New beginning for financial inclusion > http://t.co/QyOi67nOhi <http://pocket.co/sLyfR> > > > ------------------------------------------------------------------------------ > > _______________________________________________ > Mifos-users mailing list > [email protected] > https://lists.sourceforge.net/lists/listinfo/mifos-users > >
------------------------------------------------------------------------------
_______________________________________________ Mifos-users mailing list [email protected] https://lists.sourceforge.net/lists/listinfo/mifos-users
