ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Articles by M S SriramSubscribe to M S Sriram

Commercialisation of Microfinance in India: A Discussion of the Emperor's Apparel

Most of the early microfinance in India happened through donor and philanthropic funds, which were channelled to not-for-profit organisations. As the activities scaled up, microfinance moved to a commercial format. Using publicly available data, this paper examines the growth imperatives and the transformation processes of four large microfinance institutions in India. It studies the implications of the transformation process and its effect on the personal enrichment of the promoters of the MFIS. It examines the governance processes in these institutions and questions the moral and ethical fabric on which these institutions are built.

Conditions in Which Microfinance Has Emerged in Certain Regions

The paper looks at some macro data on the availability of infrastructure, economic growth, density of population and the availability of formal financial services to examine if any of these factors explain its growth of microfinance in certain regions.

The Maturing of Grameen Bank

through a zero level tolerance even for a possible genuine default.
The Maturing of Changed Borrowers Grameen Bank The Poor Always Pay Back: The Grameen II Story by Asif Dowla and Dipal Barua; Kumarian Press, Connecticut, 2006; pp 296, price not specified.

Financial Status of Rural Poor

A village-level study conducted in Udaipur district of Rajasthan attempted to map the financial status of the rural population and the funds flow indicated that the overall asset-savings-income profile of the rural poor was not alarming. However, most of the assets and savings are liquid, forcing the poor to borrow at high cost. The study reveals the failure of financial institutions to penetrate the savings and loan market. It also reconfirms earlier findings that health-related expenses are one of the major causes of indebtedness amongst the poor.

Reviving Cooperative Credit Institutions

The task force on the revival of rural cooperative credit institutions (the Vaidyanathan committee) submitted its final report in February 2005. This article lists the issues involved in implementing an ambitious package of Rs 15,000 crore. It argues that the major issues stem from some of the compromises that may have to be reached in negotiations with the states.

Microfinance and the State

Since the early 1990s, there have been many significant state initiatives in the institutional and policy spheres to facilitate access to financial services by more poverty-stricken groups. This article reviews the performance of formal institutional channels of microfinance and discusses the emergence of new forms of collaboration in the delivery of microfinance services. However, some persistent issues in regulatory policies and institutional arrangements need to be dealt with so as to help the state leverage the resources available for the poor, effectively and in a sustainable manner.


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