DripFin means Drip Finance ala Drip Irrigation (i.e. small scientific value added productive measures)

Rating Upgrade: Cashpor Microfinance – South Asia’s Leading Community Development Finance Institution (MFI)

A leading credit rating institution has upgraded the rating of Cashpor Micro Credit and moved it one notch ahead to the covated “α”  (Alpha)  on the basis of the company performance during the financial year 2010.


Snatch. – Must Watch

Watched Guy Ritchie’s (Once married to Madonna) Snatch. Brilliant. Outstanding. Especially Brad Pitt as a Pikey and Jason Statham as  Turkish.

Some memorable quotes here , here

RBI draft circular:PLR interest cap for Banks on sub Rs 2 Lakh loans stands withdrawn

Banks cannot make a sub INR 200,000 (~ USD 4500) loan  higher than its Prime Lending Rate ( varies, purely indicatively from 11% to 16% for most banks in India)

See point 5: Download here ANDC100210_F

If the Prime Lending rate cap is withdrawn, banks can make a loan sub INR 200,000 (~ USD 4500) to compete with other players catering to this segment.

Benefits: ALL, specially the end microcredit customer.

Branch Licensing may go for ~4000 towns with sub 50K population

Let the market forces play.. ~ 4000 towns in India have sub 50,000 population


A Group constituted by Reserve Bank of India has recommended that domestic scheduled commercial banks (other than RRBs) may be given freedom to open branches in Tier 3 to Tier 6 centres (centres with population upto 49,999), without the prior permission of Reserve Bank of India, subject to reporting.

The Group has also recommended that domestic scheduled commercial banks (other than RRBs) may be given general permission to open branches in rural, semi-urban and urban centres in the North Eastern States and Sikkim.

The Group further recommended that banks would continue to approach Reserve Bank of India for prior permission for opening of branches in Tier 1 and Tier 2 centres (centres with population of 50,000 and above as per 2001 Census).  The number of branches which would be authorised by RBI based on such applications may depend, inter alia, upon various aspects including a requirement that banks may plan their annual branch expansion in such a manner that at least one-third of total number of branches opened in a financial year are in underbanked districts and financially excluded districts of underbanked States as also upon a critical assessment of the steps taken by the bank towards achieving the goal of financial inclusion such as the rate of credit growth in rural branches,  growth in number of deposit accounts in rural areas and growth in credit accounts for less than Rs.25,000/- etc.,

The Group has also recommended that the branch authorisation policy in respect of foreign banks may remain unchanged until review of the roadmap for foreign banks.

The Group is also of the view that the way forward for ensuring banking penetration and financial inclusion would be to have an appropriate combination of the physical ‘brick and mortar’ branch model and the branchless models such as Offsite ATMs/Point of Sale terminals, Business Correspondent model, mobile banking etc., and it should be basically left to the banks themselves to decide as to which model would be suitable for delivery of banking services in a particular area, depending upon the special needs of that area.

Rainbow Trout – Uttaranchal

Angling is a good leisure sport  that tests both the agility and  patience of the sportsperson. Quiet moments on the banks of a gushing mountain river or stream surrounded by thickly wooded hillsides resounding with the chirping of birds can be one of the most rewarding experiences in ones lifetime. With its perennial snows, glaciers and high mountain lakes that feed the numerous streams and rivers of the state, Uttaranchal is a veritable angler’s paradise. Of the 3000 kilometres of freshwater streams and rivers, 1200 kilometres have been identified as Trout territory.

rainbow trout + uttaranchal

River water Trout ( retails for northwards of Rs 500 per kg at Delhi’s Khan Market)

This hardy game fish was introduced into Uttaranchal rivers by the British as early as 1863 and has flourished thanks to the constant efforts of the state fisheries department. Two of the most sporting freshwater game fish to be found in abundance in Uttaranchal rivers and streams are the Trout – brown and rainbow and the Mahseer a type of giant carp found in the warmer streams and rivers in the lower hills.

CASHPOR – Annual Performance – Very Impressive !!

Just flipped through CASHPOR’s Annual Report, considering they are a successful “not for profit” model of microfinance, some pertinent takeaways:

– A decade of experience with a GLP of INR 1810 Million with over 300,000 clients in 15 districts of East UP and Bihar.
– PAR>30 has halved to 0.69% ( against 1.77% in the previous fiscal) in a year where, without exception PAR>30 may have grown across MFIs. Really impressive.
– 66% of Cashpor’s matured clients have moved above the poverty line – Impact Assessment Study
– CASHPOR was ranked 4th in the Mix Global Composite Ranking of Profitable MFIs (For perspective, SKS was No.2)
– Capital Adequacy of 10.5% as on Mar-09 (Calculated by MCRIL) and plans to increase it to 12% by Mar-10 and continually meet the RBI CAR norms stipulated for NBFC’s. This would be achieved solely through a mix of retained earnings + subordinated debt. CASHPOR has no plans to attract commercial equity.
– MCRIL rating of Alpha(-) with a Positive Outlook
– Received Subordinated debt from Opportunity International and CORDAID
– Banking/FI relationships with 21 entities
– A Microfinance Business Manager of a leading Bank has joined CASHPOR as a Vice Chairman. This would add tremendously to their second line of leadership.

Boost to Financial Inclusion in India – The Half Million POS Terminals


Latin America has a wide Business Correspondent Banking Network where cash can be deposited/disbursed at merchant establishments.


The Khan committee reported recommended the Business Correspondent Banking Model for India and the RBI issued guidelines to that effect.


However, POS machines were not permitted to disburse cash leading to experimentation with various technologies like RFID/NFC/Smart cards/Mobile phones. Several companies emerged and offered innovative solutions, however some concerns were common – customer adaptability issues, cost etc



A week ago, the RBI deputy governor had mentioned about new guidelines for business correspondents/facilitators: RBI has now permitted cash withdrawals at POS terminals. This for now provides a proven, scalable alternative to RFID/NFC/Smart cards/Mobile phones .This will give a boost to financial inclusion.


Consider this:


  • Wide Network : The total no of POS machines in India is ~ 0.5 million with Interoperability.


  • Low Capex: Each POS machine costs onetime ~ Rs 7500 ( $ 175), against Rs. 100,000+ ($ 2250) monthly for an ATM + Rental of the premises


  • Cost per customer: Inexpensive Rs 15 magnetic strip cards.


  • RBI has permitted the merchant to earn a fee on each transaction