NPCI commences project to digitise MFI transactions

The National Payments Corporation of India (NPCI) on Wednesday said that it has started a pilot project to digitise transactions of micro finance institutions (MFIs).

"Potential of such a system in MFI sector itself for digitisation of payments is as high as 80 million annual disbursements and over 900 million repayment transactions," NPCI Managing Director and CEO A.P. Hota was quoted as saying in a statement.

According to the retail payments umbrella organisation, under the new initiative, RBL Bank has been manadated to disburse loans, while HDFC Bank will receive the repayments.

Currently, there are 268 MFIs catering to over 40 million low income customers with an outstanding portfolio of Rs 53,500 crore and repayment rate of over 99 per cent.