What changes to expect and measure? Findings from Baseline study of poor households in the state of Uttar Pradesh and Haryana Data findings that will help measure change and impact of a Recurring Deposit savings product Globally, microfinance has managed to create a significant footprint through its outreach to the poor. In countries like India, such outreach is only matched by government programs like the NRLM (National Rural Livelihoods Mission).With an outreach of 35.8 million clients by NBFC (Non Banking Finance Companies) MFIs alone, the microfinance sector boasts not only of a business model that has worked but also a concept that has been honed, improved and embraced by all stakeholders involved. The key stakeholder being the end beneficiary. Recent trend stands witness to the strides that the sector has made in


The launch of the Pradhan Mantri Micro Units Development and Refinance Agency (MUDRA) Yojna, under the aegis of SIDBI on April 08th 2015 made it clear that it meant business from day one by disbursing credit to twenty chosen micro entrepreneurs. “In a years’ time the mainstream banks will be queuing up to follow the MUDRA model”, said a rather confident Prime Minster Narendra Modi making retail MSME finance space a gladiator’s arena for formal financial institutions. In India, big businesses which are pegged to be big providers of jobs aided by a fantastic PR exercises in fact just account for 12.5 million of the jobs. It is in fact the financially (un)underserved micro and small enterprises, 90% of which do not have access to formal banking system and rely heavily on


Introduction India houses one of the largest populations, globally, not covered by banking services – something which our Prime Minster famously described as ‘financial untouchability’. Not surprisingly, the Government and the Reserve Bank of India (RBI), have been very active in promoting financial inclusion which has been seen as very critical for promoting inclusive growth. Among the various policy measures addressing Financial Inclusion, one of the most significant has been the introduction of the Business Correspondent Model (BC model). Since its introduction in the year 2006, the BC model has been seen as an innovative way of serving the unbanked by allowing the banks to reach out to them through a network of ‘external agents’. The BC model represents a major departure from the conventional brick and mortar branch based banking framework.