The strategy further advocates developing effective synergies between the commercial banks and the Microfinance Banks (MFBs) and between the Microfinance Institutions (MFIs)/Nongovernmental organizations (NGOs). This interdependence and integration is perceived critical to encourage commercial banks to provide the desired liquidity to MF providers – which is absolute necessity until deposit mobilization at MF level generates required surpluses.
Alliance between formal institutions and MFIs/NGOs is intended to help them access client and achieve desired degree of social mobilization – not a forte of banks.