Literature Review Digvijay Singh (2012) Microfinance in India: Issues and challenges,.

The formal financial or banking system has not been able to reach the poor household i.e. landless laborers, small and marginal farmers, rural artisans, etc. This has necessitated the need of an institution or agency that could meet the credit needs of this economically disadvantaged segment of the society Rajarshi Ghosh (2005). Microfinance in India: A critique The article traces the evolution of the Microfinance revolution in India as a powerful tool for poverty alleviation and women empowerment. Where institutional finance failed Microfinance delivered, but the outreach is too small. There is a question mark on the viability of the Microfinance Institutions. There is a need for an all round effort to help develop the fledgling Microfinance Industry while tackling the tradeoff between outreach and sustainability. Abhijit Banerjeey, Esther Du.oz, Rachel Glennersterx , Cynthia Kinnan (2009). The Miracle of Microfnance? Evidence from a randomized Evaluation This paper reports on the first randomized evaluation of the impact of introducing microcredit in a new market. Half of 104 slums in Hyderabad, India were randomly selected for opening of an MFI branch while the remainders were not. We show that the intervention increased total MFI borrowing, and study the effects on the creation and the profitability of small businesses, investment, and consumption. Fifteen to 18 months after lending began in treated areas, there was no effect of access to microcredit on average monthly expenditure per capita, but expenditure on durable goods increased in treated areas and the number of new businesses increased by one third. Rajesh Chakrabarti (2003) The Indian Microfinance Experience Accomplishments and Challenges The self-help group (SHG) model with bank lending to groups of (often) poor women

without collateral has become an accepted part of rural finance. The paper discusses the state of SHG-based microfinance in India. With traditionally loss-making rural banks shifting their portfolio away from the rural poor in the post-reform period, SHG-based Microfinance, nurtured and aided by NGOs, have become an important alternative to traditional lending in terms of reaching the poor without incurring a fortune in operating and monitoring costs.
Bhatt, Nitin and Y.S.P. Thorat (2001), Indias Regional Rural Banks: The Institutional Dimension of Reforms. Efforts to reform Indias failing Regional Rural Banks (RRBs) have had limited impact, because reformers have paid little attention to the institutional dimensions of the problems facing the banks. Few efforts were made to redesign the perverse institutional arrangements that gave rise to incompatible incentive structures for key stakeholders, such as political leaders, policy makers, stockholders, bank staff, and clients. . Kaladhar, K. (1997). Microfinance in India: Design, structure and governance The ongoing financial sector reforms have focused so far on strengthening bottom lines without taking into account the rural microfinance dimension, Financial market liberalization has, thus, not yielded results that are effective in improving microfinance transactions. Developing microfinance markets involves removing imperfections that have wrongly been assumed to be policy-induced, hence the ineffectiveness of the present frame of financial market liberalization paradigm. Pati, A.P. (2008), .Subsidised Micro Financing and Financial Sustainability of SHGs part from emphasising on outreach it is also important for micro finance intervention to remain sustainable in the long run. Financial sustainability is the core of any financial institutions and considering Self help

groups (SHGs) as grassroots level organizations engaged in the business of micro credit provision, their sustainability holds crucial for rural upliftment. The self sufficiency ratios i.e. OSSR and FSSR are the primary indicators of sustainability and both of them get reduced substantially when the subsidy is introduced into the computations. This suggests a negative impact of subsidy on the financial sustainability of SHG operations, which should be curbed by encouraging group formations with non-subsidized finance. Smita Nirbachita Badajena & Prof. Haripriya Gundimeda (2010) Self Help Group Bank linkage model and financial inclusion in India Inclusive growth is one of the important objectives of eleventh five year plan in India. Inclusion of each and every section of the society in the process of economic development and achieving growth with equity is the basic objective of inclusive growth. Financial inclusion is conceived as a major driving force to achieve self sustained inclusive economic growth. DR. JASBIR SINGH (2012) PERFORMANCE OF SELF HELP GROUP (SHG) IN INDIA The analytical results revealed that the SHGs in term of number and amount of finance is significantly increased. Commercial banks play a vital role in creating SHG and amount of finance. Maximum No of SHGs has been present in southern region and very poor condition in north eastern region. The present paper also revealed that there is a significant difference between the spreading of SHGs in different regions in India. In this regard due to the lack of education and awareness