Released in November 2010, the M-CRIL Microfinance Review 2010 report provides a comprehensive analysis of the growth and performance of microfinance institutions in India. This series of reviews started in Year 2000. M-CRIL pioneered the worldwide practice of undertaking country level analysis of microfinance performance; the M-CRIL reviews precede the MIX country reports and also the set of similar publications that now crowd the microfinance environment in India.
Microfinance Contributes to Financial Inclusion
In keeping with its tradition of expanding the frontiers of analysis in microfinance this year’s review incorporates a perspective on the contribution of microfinance to financial inclusion in India. It concludes that microfinance has become a significant component of the financial system in the country and its contribution to financial inclusion rivals, if not exceeds, that of the rural banking system.
The sector, therefore, needs to be given a similar level of importance and attention by regulators and policy makers as that accorded to the rural banks. This will better enable them to address the moral hazard of private investment in microfinance, so starkly under the spotlight in Andhra Pradesh as this review goes to press.
Download M-CRIL report on Microfinance Institutions in India