Microfinance Delivery Institutions in India-Governance and Management Challenges

The paper discusses the importance of microfinance for reducing poverty and for the growth and development of the nation. It highlights the importance of group based professionally assisted microfinance delivery channels like Self Help Groups and Joint Liability Groups, their collective and collaborative strengths in reaching the un served & underserved masses and the challenges they face in terms of raising capital, reducing transaction costs and capacity building. It also focuses on opportunities and threats to the microfinance sector and further goes on to emphasise that leveraging technology, entering into strategic partnership with third parties having common interests, capacity building and designing products as per changing needs of customer would address the challenges effectively. The role of Government and Regulatory Bodies would be crucial so that innovative practices and experiments are encouraged while keeping vigil on new developments.