Delay in repayments by microfinance institutions seems not to have been enough to trouble banks. Adding to their woes are the delayed repayments coming from the government supported self help groups (SHGs).

The government itself has said that there has been a 70% dip in repayment by SHGs.

The past ten years had witnessed 100% repayment from SHGs which had received funding worth Rs 29000 from banks.

The State Level Bankers' Committee (SLBC) has said that they will now be extending financial aid to rural sector only under the condition of timely repayment.

In response to the rising pressure for recovery from banks, Society for Elimination of Rural Poverty, the prime head for the SHGs, issued an advisory on December 24 asking them to repay on time.

"Our groups repay the loans on their own. But if bank officials come for recovery, it implies that the group is not functioning properly," the advisory said.

"The SHG loans and those given for Indiramma houses will not be waived. If the repayment is delayed, the interest burden will increase. Banks will initiate measures to recover the loans," the advisory said.