Microfinance: A Tool of Poverty Alleviation with Bank Linkage Programme in Himachal Pradesh

Microfinance sector has traversed a long journey from micro savings to micro credit and then to micro enterprises and now entered in the field of micro insurance, micro remittance and micro pension. This gradual and evolutionary growth process has given a great opportunity to the rural poor in India to attain reasonable economic, social and cultural empowerment, leading to better living standard and quality of life for participating households. Financial institutions in the country continued to play a leading role in the microfinance programme for nearly two decades now. They have joined hands proactively with informal delivery channels to give microfinance sector the necessary momentum. During the current year too, microfinance has registered an impressive expansion at the grass root level. This paper tries to find out the contribution of commercial banks, regional rural banks and cooperative banks in strengthening microfinance sector by participating in Self Help Group bank linkage programme. Researcher tried to establish the relation between spread of non-government organizations and growth in microfinance sector in Himachal Pradesh.