 |
    |
|
SKS Microfinance Implements Cash Management System
Nov '2009
* The first MFI to use rural cash management system * Network across 575 rural branches * Banking Partnership with HDFC, AXIS and ICICI Hyderabad, November 13, 2009: SKS Microfinance Limited – India’s largest and world’s fastest growing Micro Finance Institution (MFI) has implemented a revolutionary, integrated Cash Management System (CMS) for over a third of its rural branches. This CMS – first of its kind in the MFI sector in the country – seamlessly networks 575 SKS branches, through an internet banking platform to three of the country’s largest private sector banks – Axis Bank, HDFC Bank and ICICI Bank. Almost 95% of MFI members are in rural areas, most without any access to traditional banking. On the other hand almost all MFI disbursements and collections from its members are done in cash making a sound cash management system essential. S. Dilli Raj, CFO of SKS said “Getting real time connectivity with pull & push facilities for 575 rural branches significantly reduces the float and mitigates risks. It was an execution challenge to integrate these rural branch accounts on internet with real time connectivity. I am happy that our partners Axis Bank, ICICI Bank and HDFC Bank have stood up to the challenge and co-created this solution with us. SKS as a leader is happy to have taken the burden of executing such a sector defining initiative” Of the 575 branches networked by the CMS, 300 have been networked with Axis Bank, 175 with ICICI Bank and the remaining 100 with HDFC Bank. Apart from playing the float & mitigation of risks, the integrated online CMS solution will strengthen the MIS support, facilitate the Bank reconciliation process and add to ‘audit quality’ as bank balances will be available with a touch of a button. The 575 networked branches are spread in 19 states. The company expects to expand this to another 600 rural branches in the second half year of this fiscal year, Mr. Dilli Raj added. |
 |
