Microfinance: India vs World

Abstract

The major goals of this document are to understand the microfinance sector, in India & compare it to the world, its evolution & the effects of recent boom in digital payments on the MFis. The document starts with d iscussing why there is a need to understand the microfinance industry, what is microfinance & why there was a need for such a financial instrument along with the concept of financial inclusion. Then it delves into the major stakeholders of the microfinance industry & the key challenges they face. There are many alternatives to MFis, of which some are discussed along with widely used models of microfinance, with examples. Then the report looks at the evolution of rnicrofinance over the years & discussed the recent debates on the need for governance of microfinance. The report finally highlights how digital payments, UPI, has changed the face of the microfinance industry since its launch.