Has demonetisation hit micro-finance?

Abstract

Kirana and tea shops are doing better than businesses that involve discretionary spending. The Micro-finance industry (MFI) is cursed and blessed at the same time. When there were indications that the micro-finance sector is overheating, with high growth rates, multiple lending and oppressive loan recovery practices, the withdrawal of specified bank notes (SBN) hit them. There were reports of stress from Uttar Pradesh and it appeared that there would be a repayment crisis in certain regions, which would have a multiplier effect. This was similar to the events in (the undivided) Andhra Pradesh in 2010. Read more at: https://www.thehindubusinessline.com/portfolio/india-economy/has-demonetisation-hit-microfinance/article9443452.ece