ASA India surrenders microfinance licence, seeks to continue as business correspondent for banks

ASA India, a microfinance institution, has surrendered its microfinance license and will now operate as a business correspondent for banks. The decision comes after challenges in maintaining profitability and operational sustainability under the microfinance model. ASA India’s new role as a business correspondent will allow it to continue facilitating financial services to underserved populations by acting as an intermediary between customers and banks. This shift reflects a broader trend in the microfinance sector, where institutions are adapting their business models in response to regulatory changes and market dynamics, while still striving to support financial inclusion efforts in rural India.