Alternative ways of managing supply side in microfinance: Study of rrbs, Cooperative societies, Chit Funds and informal lenders

Abstract

Ideation of Microfinance happened when formal finance failed to make a dent in poverty. But this self-roclaimed panacea for poverty, ‗microfinance‘, has also failed in many instances questioning the feasibility of microfinance institutions. Though microfinance is a recent phenomenon in India, there have been many institutions created with the mission of helping poor and alleviating poverty. We look at some of these institutional mechanisms like cooperative societies and Regional Rural Banks that Indian government tried for poverty reduction. Decades of these efforts on poverty reduction has not succeeded well, and informal finance still exists and continues as a major source of support for poor. We would closely look at the aspects which can be adopted widely, hence helping the overall poverty reduction efforts.