Vol. 1, Issue 4, Part D (2015)

Abstract
The term micro finance sometimes is used interchangeably with the term micro credit. Micro finance is a broad term that includes deposits, loans, payment services and insurances to poor. Through this paper researcher intends to cover that microfinance is not to just distribute the credit to poor’s but also help them to raise their standard of living by earning through tiny and small business setting up by microcredit. Studies show that these mandatory and dedicated subsidized financial programmes have been implemented through banking institutions but unable to meet their social and economic objectives. There are several key issues in Microfinance in India which I would like to cover through this paper. Financial inclusion is a great step to alleviate poverty in India, thus government should provide such an environment in which banks will freely pursue the necessary innovations to reach the low income consumers and still make profit. To achieve their target, a new policy initiative needs to be taken by the Government for the smooth implementation of this concept.