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The paper discusses the importance of microfinance for reducing poverty and for the growth and development of the nation. It highlights the importance of group based professionally assisted microfinance delivery channels like Self Help Groups and Joint Liability Groups, their collective and collaborative strengths in reaching the unserved & underserved masses and the challenges they face in terms of raising capital, reducing transaction costs and capacity building. It also focuses on opportunities and threats to the microfinance sector and further goes on to emphasise that leveraging technology, entering into strategic partnership with third parties having common interests, capacity building and designing products as per changing needs of customer would address the challenges effectively. The role of Government and Regulatory Bodies would be crucial so that innovative practices and experiments are encouraged while keeping vigil on new developments. [ABSTRACT FROM AUTHOR]

The study evaluates the progress made in the field of financial inclusion and the impediments towards achieving universal financial inclusion .It finds that though Government has put in all efforts towards banking penetration and access but the demand side has not been addressed resulting in very little usage of the financial products . The products meant for the poor are just stripped down version of regular product developed for the urban educated masses .The study identifies the demand side drawbacks in the present model of financial inclusion and suggests ways and means to overcome them. In its attempt to address the demand side issues it studies the Global Financial Inclusion Models like BRADESCO of Brazil, MPESA of Kenya, Rakyat Bank Indonesia, Mzansi accounts of South Africa, Grameen Bank of Bangladesh etc to understand what makes them successful in their business. [ABSTRACT FROM AUTHOR]