MICRO FINANCE-AN IMPERATIVE FOR FINANCIAL INCLUSION IN INDIA

Abstract

Financial inclusion is a flagship programme started by the Reserve Bank of India to bring peopl e under the ambit of formal financial inclusion. Along apart with from providing credit under this scheme, the Reserve Bank has adopted a policy of providing credit through multiple channels viz., involving self -help groups (SHGs) and MFI, expanding the scope of the Business Correspondence (BC) model, simplifying procedures and processes for Micro and Small Enterprises (MSEs) and Adopting information and Communication Technology (ICT) solutions for greater outreach and lower Transaction costs. This articleis based on the premise that poverty has its own culture. Social system and sub systems of this culture are built on exploitation. Microfinance is an intervention based on Social Intermediation in which poor people can mobilize their savings, link it with credit and finally become self-employed. It results in building social capital. The study is based on secondary information from existing literature and some of the information has been collected from Nabard Reports, status of Microfinance and RBI reports.