Microfinance-Driven Banking Initiatives for Advancing Financial Inclusion; Evidences from India

This study examines significant banking initiatives in Indian microfinance sector with the overarching goal of achieving comprehensive financial inclusion. Globally, financial inclusion has become a key objective for governments and financial institutions, emphasizing the provision of affordable financial services to ensure universal access to fundamental tools for managing lives and enhancing well-being. The microfinance system plays a crucial role in driving the financial inclusion of low-income households, which are usually excluded or underserved by the traditional banking system. Due to RBI roadmap to cover villages with bank branches and other regulations, banks started to pay attention in the microfinance sector with many products and schemes. Likewise, the corporate sector considers microfinance as a mode to fulfill the corporate social responsibility (CSR) and to promote the welfare and economic growth of unbanked and remote areas. Therefore, this study aims to investigate the diverse banking initiatives in microfinance geared towards financial inclusion in India. Notably, no integrated study has been conducted in this domain within the country. Specifically, this research qualitatively evaluates these banking activities and assesses their driving factors.