Mobile Bank-SHG Linkage, Uttar Pradesh, India (Photo credit: Wikipedia ) Proposal: Micro Payments and Self Help Groups (SHG) Introduction For organisations practicing Micro Payments and Self Help Groups (SHG), Debt collection is their integral part of the credit management unit that secures payments from the debtor. Actually, a credit management unit usually handles these transactions where before, most banks perform this activity by hiring their own debts collection agent. With the advent of the business phenomenon of outsourcing during the early 1990s, whose foremost aim is to cut costs of doing business, a sizeable number of collection agencies have surfaced to provide the banks with the service of debt recovery. Whichever way the banks choose to collect the debts owed to them, problems arise which require the intelligent planning of the credit management unit of the institution. Bass (1998, p.93), in his book ‘Credit Management’ , stated that ‘ Effective collections do not...