ROLE OF MICRO FINANCE IN THE UPLIFTMENT AND GROWTH OF RURAL INDIA
Keywords:
- Micro finance, Rural India, Rural UpliftmentAbstract
This paper reviews the current level and pattern of access to finance for India’s rural poor and the main findings and implications of the paper are as follows: India’s rural poor currently have very little access to finance from formal sources. Among these, the growth of SHG Bank Linkage has been particularly remarkable, but outreach remains modest in terms of the proportion of poor households served. In this paper some of Emerging Scenarios for Microfinance Regulation in India have be discussed.
The micro finance played a major role in the mobilization of savings and promoting economic development. In the post financial sector reforms (1991) phase, the performance and strength of the banking structure improved perceptibly. Financial soundness of the Indian commercial banking system compares favorably with most of the advanced and emerging countries. Since 1991, the size of the Indian economy in terms of GDP at market prices has increased by almost fifteen times, whereas the household financial savings have expanded by sixteen times and the gross domestic savings by almost seventeen times during the same period but in this growth the contribution of Rural India is negligible . There is the immense need of development in rural areas as without rural development India cannot become a developed economy this can only be achieved through micro financing and making rural population self dependent .
The economic structure diversified substantially and the economy has been opening up and getting increasingly integrated with the global economy. In this paper some of the major issues related to shaping the future development of the legal framework for microfinance in India have been discussed.
Micro finance sector seems to grow and with no full stop in sight. The sector performed creditably in a year that experienced a widespread liquidity crunch. The Self Help Group (SHG)–bank linkage programmed, made remarkable progress during the year 2008-09 with 8% growth
Shows that still the gaps exist in the Bihar, Madhya Pradesh, Rajasthan, Uttar Pradesh (BIMARU) states The objective of this study is to analyze the role of SHGs in rural upliftment and to find the new ways of improving the implementing strategy of SHG and bank linkage programme where it is not being properly implemented.
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NABARD. 2003. Working Group on Guidelines for Financial SHG Federations/MACS/MFIs: Summary of Recommendations. Hyderabad: NABARD
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Bhattacharjee, B,R, Stefan Staschen 2004 Emerging Scenarios for Microfinance Regulation in India Publisher: Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH
www.legatum.com legatum ventures A crisis at the bottom of the pyramid
Banking Structure in India - The Way Forward Discussion Paper Prepared by Department of Banking Operations and Development (DBOD) and Department of Economic Policy and Research (DEPR) Reserve Bank of India Mumbai August 2013
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