Bandhan Bank, which has a wide microfinance network, said it has suspended micro-credit disbursement after the demonetization of Rs 500 and Rs 1,000 notes on 8 November. Chandra Shekhar Ghosh, MD and CEO of the bank, said the bank has stopped micro-credit lending since the first day of currency ban came into effect and it will remain closed till 19 November. However, the collection is continuing, he added. He said even if the bank gets sufficient Rs 2000 currency notes, it cannot disburse them as the customers may not be able to use it and have to give interest. Bandhan has collected about Rs 1500 crore since the currency clampdown.
