Publication: Dvara Research

Markets typically exist within the boundaries set by the state. The financial markets are no exception to this. Mobilisation and allocation of capital – the key roles of the financial system – are done within the framework defined by the government.

What does it mean to be a farmer in Kurnool (a district in Andhra Pradesh)? One part of the district grows commercial crops such as sunflower and tobacco while another supports nothing but paddy (the Telugu-Ganga Canal influences the soil in way that only paddy can be grown here).

Though India has deep financial infrastructure comprising a large number of bank and post-office branches; agricultural cooperative societies; and, now, micro finance institutions; there still remain gaps that have prevented us from leveraging the full potential of this financial infrastructure.

Gram panchayats in India are independent, constitutional bodies of governance that operate at the level closest to the people or the grass-roots.

Puneet Gupta is restless and visibly excited. The last ten days have been the culmination of many days’ efforts in creating access to finance to deserving high quality Microfinance Institutions (MFIs).

The financial sector crisis in Andhra Pradesh seems to be playing out like a very bad dream that doesn’t end.

In what could become a welcome trend, the RBI has started putting out detailed discussion notes on future policy steps.

Finance Matters column in The Hindu Business Line – Farzana Najeeb of Advocacy writes the fifth article in the series.

The recent controversy surrounding the microfinance sector has entirely eclipsed the fact that it is the first effort in India to have delivered financial services to remote corners of the country in a self-sustaining manner.

Having understood the deep transformative potential of access to finance and the barriers to accessing it, here’s a look at the fundamentals of the MFI cost structure in delivering finance.