new delhi apr 4 a proactive role from rbi is needed in helping people distinguish between micro finance and chit funds which are often confused as one according to nbfc outfit satin creditcare microfinance credit served by nonbanking financial companies nbfcs is typically about looking at the bottom of the pyramid satin creditcare networks ltd cmd h p singh said the reserve bank has a major role to play smalltime people talk about loan waiver not paying instalments etc but nbfcs are organised financial institutions regulated by rbi he said i think a lot of people who are unorganised are working in these micro lending areas like chit funds so why are we clubbed with them he asked there has to be clear cut answers to that a more active role on the part of rbi is needed where we can become stronger in terms of a mechanism where all these unscrupulous elements chit funds are taken out of the system he reasoned often it also happens that borrowers refuse to repay loans upon hearing about loan waiver schemes without understanding that nbfcs are not government owned but merely rbi regulated asked about the impact on business postdemonetisation singh said that a majority of people applying for micro credit are from the unorganised sector and there was an impact on their livelihood which did hit borrowers repayment capacity the rbi gave a breather to nbfcs allowing borrowers extra 60 days for loans due between november 1 and december 31 2016 as substandard when cash goes out of the system definitely it will affect to a certain extent the interim collection efficiencies had gone down singh said satin creditcare also sees a bottomline hit in 201617 from loan writeoffs because of delegalisation of old rs 500 and rs 1000 notes whatever will be the writeoff due to demonetisation it will impact our bottomline it will be after april that we will be able to assesses how much we have technically written off it will not be very significant though he added kpm jm