Report of the Internal Group to Examine Issues Relating to Rural Credit and Microfinance

Opportunities and obstacles bringing banking services' to under-serviced and poor, rural areas
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This is an official document of the Reserve Bank of India, outlining the policies and recommendations for developing the microfinance sector in India.

The document discusses the following:

  • Various government schemes to assist poor individuals in India;
  • The gap in banking services available to the rural population and the various reasons for it;
  • The budget announcement by the Government to help this sector;
  • Effective models used internationally to improve this sector;
  • Different models from the Indian microfinance industry;
  • Strategies to deepen and widen financial services available to rural populations;
  • Various risks associated with the business and recommendations to overcome them;
  • Recommendations to promote and develop microfinance institutes (MFIs) and models that can be adopted in the process;
  • The possible role of the private sector for developing microfinancing activities;
  • Rating MFIs;
  • Regulatory issues and concerns associated with the MFIs;
  • Issues related to and recommendations for Section 25 companies and non-banking financial companies (NBFCs) to promote their development.

About this Publication

By Sardesai, A.