Microfinance Initiatives and Indian Economy : Accomplishments and Challenges

Microfinance refers to small scale financial services for both credits and deposits that are provided to the low-income clients. Microfinance activities have been experimenting across many developing and under developed countries as a tool for poverty alleviation. India being one among the nations having the largest population of poor in the world is a right candidate for such inclusive initiatives. The Self Help Group Programme initiated by National Bank for Agriculture and Rural Development in the year 1992 is the fastest growing microfinance programme in the country. This paper attempts to investigate into microfinance initiatives undertaken in India and its impact on Indian economy