Indian microfinance sector in the new millennium: developments and concerns

Microfinance is not merely a concept but a revolution. It is going to change the face of financial services and add to the movement of socially responsible financial system provided it is effectively organized for present and future challenges. Being identified as a tool for poverty alleviation, it has become a mantra for policy makers in accomplishment of their common agenda of peace, poverty and economic development. This has been identified as a strategic sector that needs sufficient funding, monitoring, regulation and development. The experiences of the world in realizing the concept have certain similarities and differences. The approach varied across regions and nations. In India, contemporary research and policy initiatives identified that the dream of inclusive growth can be achieved with the help of financial inclusion and private public partnership is prompted in this direction. This paper makes a comparision of evolution and developments in microfinance across the globe with Indian scenario and suggests various measures to improve the sector.