Microfinance in India (1980s - present)
•1980s -
1992: Microfinance pursued
largely by NGOs and social service organizations, based on “promoting”
semi-indigenous SHG groups
- early implementers of SHGs were MYRADA, Pradan, SEWA
•1991: Foreign exchange crisis in India, extensive
economic reforms
•1992 -
present: National Bank for
Agriculture and Rural Development
(NABARD), with support from RBI (Reserve Bank of India), commences SHG-Bank linkage program,
where SHGs are directly
linked to India's existing extensive rural bank network
•2002 –
present: A number of NGOs
themselves become commercial
Micro-Finance Institutions (MFIs).
•2001 –
present: Large private
sector banks (most notably ICICI) entering the fray, financing both MFIs and SHGs
directly. Several international banks and social venture funds
are also interested.
