Kolkata: Collection efficiency ratio of the microfinance sector is comfortable at 90-95 per cent and there has been no impact on recoveries despite the current Covid surge, a senior official said on Thursday.
The collection efficiency ratio of the sector is much better than other financial instruments, Chief Executive Officer of the Microfinance Institutions Network Alok Mishra said on Thursday.
He also said it has been demanding extension of the credit guarantee scheme by Rs 10,000 crore and quota for small and medium MFIs.
Mishra said the RBI is expected to bring in harmonised regulations for MFIs to promote competition in the sector.
Sa-Dhan’, a self-regulatory body of MFIs, had earlier said the sector was facing challenges in terms of higher credit costs and access to low-cost long-term funds.