BANKING AFFAIRS

Detailed explanation-1: -5.43 SIDBI launched its micro finance programme in February 1994 on a pilot basis. The programme provided small doses of credit funds to the NGOs all across the country. NGOs acted as financial intermediaries and on-lent funds to their clients.

Detailed explanation-2: -’Microfinancing’ was introduced in India in the 1980s as a solution to poverty and to empower women. Despite its strong potential, the microfinance sector faces challenges related to accessibility in rural India.

Detailed explanation-3: -Muhammad Yunus a Nobel Prize winner, introduced the concept of Microfinance in Bangladesh in the form of the “Grameen Page 3 80 Bank". NABARD took this idea and started concept of Micro Finance in India.

Detailed explanation-4: -Microfinance is a banking service provided to unemployed or low-income individuals or groups who otherwise would have no other access to financial services. Microfinance allows people to take on reasonable small business loans safely, and in a manner that is consistent with ethical lending practices.