The coronavirus pandemic has disrupted operations in every sector across the globe. From the unprecedented transformation of organisational functioning to a total or complete shutdown of many businesses, the repercussions have been harsh. The microfinance sector, which had experienced a huge negative impact on asset quality following demonetisation in , is closely monitoring the impact of COVID on the sector. Needless to say, the microfinance institutions have been badly hit.
AN OVERVIEW OF MICROFINANCE IN INDIA
Microfinance Research Papers - taru.info
Biz Arena. Microfinance sector has grown rapidly over the past few decades. Today it has evolved into a vibrant industry exhibiting a variety of business models. With financial inclusion emerging as a major policy objective in the country, Microfinance has occupied centre stage as a promising conduit for extending financial services to unbanked sections of population. At the same time, practices followed by certain lenders have subjected the sector to greater scrutiny and need for stricter regulation. This report, which contains only a part of the actual report is based on the research work done as a part of the summer internship project at Reserve Bank of India, Kanpur. The research involved study of the past literatures about the microfinance sector, related online research papers and journals.
Future Trends in Microfinance Sector in India
Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Inclusive growth and issues arising from it. Account for the role that microfinance institutions can play in poverty alleviation in India. The question is based on the analysis provided by the recently released economic survey upon the role that microfinance institutions can play in poverty alleviation in India. The answer must discuss the role that microfinance institutions can play in poverty alleviation in India.
Microfinance is the provision of financial services to low-income clients or solidarity lending groups including consumers and the self-employed, who traditionally lack access to banking and related services. It is not just about giving micro credit to the poor rather it is an economic development tool whose objective is to assist poor to work their way out of poverty. It covers a wide range of services like credit, savings, insurance, remittance and also non-financial services like training, counseling etc.