Future direction and strategies to amplify a sustainable micro finance sector for rural India

The last two decades, we have witnessed a significant development of microfinance initiatives around the world. This rapid proliferation is a result of success story of microfinance in providing financial services primarily credit and savings to a large number of poor clients who do not have access to formal financial institutions in many third countries. As a development tool, microfinance is considered as one of important financial resources for poor people to conduct household economic and income generating activities, which can reduce their vulnerability, and allow them to accumulate capital and hold valuable assets. In another perspective, microfinance also means of helping micro entrepreneurs to expand their businesses to the point of becoming viable business and eligible for credit from commercial banks.There are critical issues that should be addressed in establishing savings mobilization. First, sound macro-economy and financial sector environment including an appropriate legal, and regulatory and supervision framework. Second, strong governance, ownership, and institutional structures, which can demonstrate good management on the funds. Third, advance financial management capabilities that focus on liquidity and risk management practice. Fourth, market-oriented products and mechanisms that fit the preferences of poor clients. Finally, human resource empowerment through capacity building program as well as develop incentive system on staff performance.Microfinance has been successfully working as anti-poverty and development tool from the last few years. It is moving forward as an industry, which benefit million poor people, poor women, micro entrepreneurs, peasant farmers, and the society and economy of India to leap to the sea of development So the government, micro-finance/credit institutes, banks, other related agencies should strive hard and move from earth to heaven in making up the same as a good means of finance and lucrative business through providing financial services for the poor.