Microfinance

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The financial services industry in the development of poor areas is still a problem to be solved for the service of the inequality, financial security and the specific mechanism and methods of use should be attention to improving and developing. In recent statistical data show that India still has 200 million people cannot accept the basic financial services and small loan services, because in poor areas and remote areas affected by low income and other external factors(Global Findex Database 2014). It is worth noting that, even if commercial banks and microfinance institutions have high opportunity costs, in the poor and remote areas they are still providing financial services and microfinance services. In addition, recent investigation and research show that with basic financial services and microfinance development in poverty-stricken areas and remote areas, these regions will usher in a new life, more and more foreign capital and institutional competition to gain the profits. This will also promote the local economic service system development and the quality of financial services and quality improvement. In short, in poverty-stricken areas and remote areas, providing basic financial services and microfinance is the most strategic solution to improve and upgrade the scheme and the level of financial development, the national level of financial development.

Reference:

Silvia Prina, 2013, ‘BANKING THE POOR VIA SAVINGS ACCOUNTS: EVIDENCE FROM A FIELD EXPERIMENT’, https://www.poverty-action.org/sites/default/files/publications/Banking%20the%20Poor%20via%20Savings%20Accounts.pdf.

GafeeA. Khan& Folia, 2013, GROWTH AND DEVELOPMENT IN INDIAN BANKING SECTOR, https://www.academia.edu/5450414/GROWTH_AND_DEVELOPMENT_IN_INDIAN_BANKING_SECTOR_INTRODUCTION.

Global Findex Database 2014, 2015, ‘Measuring Financial Inclusion around the World’, http://documents.worldbank.org/curated/en/187761468179367706/pdf/WPS7255.pdf

Lakshmi,I & Petia,T, 2014, ‘Poverty and Crime: Evidence from Rainfall and Trade Shocks in India’, http://www.worldbank.org/content/dam/Worldbank/Event/DEC/Trade,%20Poverty%20and%20Prosperity%20Conference%20December%202014/Iyer_Topalova_2014-08-26.pdf

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Harper,K& Kamal,N, 2015, ‘A Leap towards Financial Inclusion in India’, http://www.ermt.net/docs/papers/Volume_4/1_January2015/V4N1-108.pdf

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Mrunal C & Vikram P. R, 2016, ‘ Awareness of Financial Inclusion: An Empirical Study’, http://rrjournals.com/upload/fINANCIAL%20INCLUSION%20BY.pdf