 "demonetisation")
It is not widely realised that demonetisation dealt a severe blow to the microfinance sector. As a result, significant sections of India’s working poor, who were seeking to pull themselves out of poverty by taking small loans form microfinance institutions (MFIs), also suffered a setback.
This went against the aim of two official policies. Eight of the 10 small finance bank licences issued by the Reserve Bank of India went to MFIs, making them a key engine to promote financial inclusion and reduce poverty. Trouble for them has meant a setback to those goals. Plus, the government’s declared aim of
