Bangalore: SKS Microfinance has inked pact with three private banks for deploying an integrated cash management system (CMS) for 575 of its rural branches. The microfinance institution, which has about 1,700 branches, would partner with Axis Bank (300 branches), ICICI Bank (175 branches) and HDFC Bank (100 branches).
'We plan to implement the CMS in 175 branches by December-end, and the rest would be covered by the end of this fiscal," said S Dilliraj, Chief Financial Officer, SKS Microfinance.
Explaining the system, Dilliraj said that the microfinance institution would move to the next level of credit process from the real-time gross settlement (RTGS) accounts to the integrated CMS, wherein the 575 branches would have bank accounts which are integrated into an Internet portal. "You just need to log on to the bank Web site to access information on funds availability, etc., for all the branches," added he.
Besides, push and pull-back of funds would also be enabled through the new system. "Earlier, funds' transfer from the head office to the branches was a weekly exercise, but now it is possible on a daily basis. Thus float in the system comes down by 50-60 percent. This would ensure higher amount of cash availability in the feed. The integrated CMS is both an efficient and risk mitigation strategy," said Dilliraj.