Microfinance

Microfinance in India: A Fairy Tale Turns into a nightmare? In late public debates microfinance (MF) has been menti singled as an serious prick to combat poverty. Therefore, MF has have a lot of attention, from policy-makers, efficiency member circles and financial services industry across the world. India is considered to be hotshot of the largest market for microfinance globally. In recent times in that respect has been explosive charge that MFIs in India, due to various reasons, oblige driven borrowers to suicides. This has caused a severe political backlash against the sector. In response, there has been increase demand for strict prescript of the sector. Already, the evidence of Andhra Pradesh and RBI has acted on these lines. In this context, this lecture focuses on the opinion of MF, various MF practices followed in India, major benefits and limitations of MF, impact of MF in India and world, afoot(predicate) crisis facing the MF sector in India, and the prop osition for regulation of the sector. 1. Introduction According to the United Nations (UN) almost twenty percent of the world community (i e, 1.3 billion people) is living in thorough poverty, earning less than one dollar a day. In recent public debates microfinance has been mentioned as an important instrument to combat poverty.

Therefore, microfinance has received a lot of attention, both(prenominal) from policy-makers as well as in academic circles. Especially during the chivalric 10 years, microfinance programmes have been introduced in many development economies. well(p) known examples are the G rameen assert in Bangladesh, Banco Sol in ! Bolivia and Bank Rakyat in Indonesia. The Grameen Bank dust of group lending (established in 1976 by Muhammad Yunus, a Bangladesh banker and economist), in particular, has been copied in other developing countries. Between declination 1997 and December 2005 the flesh of microfinance institutions in the developing world has increased from 618 to 3,133. The number of people who received credit from these...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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