About the author

Dushyant Sethiya was born in Jabalpur, India in

1985. He did schooling at St. Thomas Convent School
and completed Bachelor’s of Engineering at Mandsaur
Institute of Technology (RGPV University). He completed
MSc. International Business at Leeds University
Business School (University of Leeds, England). He is
currently working as Managing Director at SSSKS Co-
operative Credit Society Ltd. Mandsaur (M.P), India.

Dushyant.sethiya@gmail.com
www.dushyantsethiya.com
Microfinance:
A helping hand
 First published in 2010
by Discovered Authors, ISBN 978-1-905108-81-7

Second edition published by CallioSoph an

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Microfinance:
A helping hand

By

Dushyant Sethiya
Dedicated
to
My Parents
 ACKNOWLEDGEMENTS

It took me two years to research and write Microfinance: A Helping

Hand and have many people to thank for help along the way.

I am thankful to Ms Nina Jennifer Kaysser (Department of

Development Studies, SOAS, University of London) for editing
my work, and inspiring me to write this book. I am especially
grateful to University of Leeds Library (Leeds, UK), East Ham Library
(London, UK), Brent Council Library (London, UK), Nat Nagar
Research Organization, Sitamau (M.P, India) and Mandsaur Institute
of Technology (M.P, India).

I would like to give special thanks to honorable, Mr. Digvijay Singh (EX
- Chief Minister of Madhaya Pradesh, India), Mr. Ajit Jogi (Ex - Chief
Minister of Chhattisgarh, India) and Mr.Kamal Nath (Union Minister
for Road Transport and Highways, India) for appreciating my work.

I would like to thank Mr. Richard Stead (Research Supervisor),

Dr.Nicholas Forsan (Programme Director, MSc International Business)
and Dr Mario Kafouros (Director of Research for International Business)
at University of Leeds when I was pursuing my MSc International
Business Degree, who supervised me in the research and helped me,
from selecting a research topic to data collection and the last stage of
research and inspired me to write this book.

For unfailing love and support I am deeply grateful to my close friend

- Mr. Shyam Kumawat and Mr. Harsh Vardhan. I am especially grateful
to Pallav Sethiya and Deepshikha Sethiya - my younger siblings who
witnessed and covered many of the events in this book first hand –
for reading the manuscript with the great care and giving me detailed
and sensitive feedback.

I am indebted – in more ways than I can ever say – to my parents,

Mr. Shyam Sethiya and Mrs. Manju Sethiya, and my uncle - Mr. Om
Sethiya. This book has always been for them and is dedicated to my
Grandfather Late. Mr. Komal Ram Sethiya (Great Philanthropist). Due
to their continuous support I have accomplished this book on time. I
would like to bestow my success to my parents, younger brothers and
sisters( Megha, Pallavi, Divya, Mayank, Vini, and Chetan).
 List of Abbreviations
MFIs Micro-financial Institutions
SHGs Self-Help Groups
UN United Nations
IMF International Monetary Fund
NGO Non-Governmental Organization
MDGs Millennium Development Goals
GOI Government of India
SBI State Bank of India
RRBs Regional Rural Banks
IRDP Integrated Rural Development Program
LTV Loan-to-Value
IIMB Indian Institute of Management Bangalore
IIMA Indian Institute of Management Ahmedabaad
SMEs Small and Medium-Sized Enterprises
NBFCs Non-Banking Financial Companies
RNBCs Residuary Non-Banking Companies
MNBCs Miscellaneous Non-Banking Companies
RBI Reserve Bank of India
LABs Local Area Banks
UCBs Urban Co-Operatives Banks
PACS Primary Agricultural Co-operative Societies
NABARD National Bank for Agriculture and Rural
Development
SEWA Self -Employed Women’s Association
MFO Micro-finance Organization
BANCO-SOL Banco-Solidario
CDFIs Community Development Financial
Institutions
SGBL Self -Help Group Banking Linkage
NREGA National Rural Employment Guarantee Act
 TABLE OF CONTENTS

ACKNOWLEDGEMENTS...................................................7

LIST OF ABREVIATIONSTIONS.........................................9

INTRODUCTION...........................................................13

CHAPTER 1: THE POOR AND THEIR NEEDS......................23

CHAPTER 2: MAINSTREAM BANKS AND THEIR BUSINESS

METHODS..................................................37

CHAPTER 3: MICRO-FINANCE APPROACHES IN VARIOUS

COUNTRIES AND PERIODS...........................51

CHAPTER 4: INSTITUTIONAL STRUCTURES OF

MICROFINANCE IN INDIA...........................59

CHAPTER 5: BANKING LIBERALIZATION IN INDIA...........77

CHAPTER 6: MICROFINANCE – AN INDIAN EXPERIENCE....85

CONCLUSION..............................................................95

BIBLIOGRAPHY............................................................99
 INTRODUCTION

“Microfinance is an idea whose time has

come.”

(Kofi Annan, Former UN Secretary-

General)

The article titled as “The History of Microfinance” displayed on

Global Envision Website, reports that, ‘the concept of
microfinance is not new. Savings and credit groups that have
operated for centuries include the “susus” of Ghana, “chit funds” in
India, “tandas” in Mexico, “arisan” in Indonesia, “cheetu” in Sri-
Lanka, “tontines” in west Africa, and “pasanaku” in Bolivia, as
well as numerous savings clubs and burial societies found all over
the world. Formal credit and saving institutions for the poor have
also been around for decades, providing customers who were
traditionally neglected by commercial banks a way to obtain
financial services through cooperatives and development finance
institutions.’1

Microfinance has been present in the dictionary for a long time,

but it is just now that it has found its way into the real world.
The authors, Thurman and Smith, mention in their renowned
book on microfinance A Billion Bootstraps, on pp.179, ‘As far back
as the year 1515, Pope Leo X issued a ruling in favor of
organizations called Montes Pietatis, or Mounts of Piety, declaring
that lending to the poor is an act of mercy. These groups asked
only the nominal collateral from

15
Dushyant Sethiya Microfinance: A Helping Hand

their borrowers; as opposed to those we would today call loan

shark.’2 Sarah Dyer, Assistant Director at Leonard Cheshire
International, UK, said that conventionally, microfinance was
seen as micro-credit given to the poor, to help them either by
employing the money in fruitful activities or expanding their
small businesses. ’In fact, microfinance is more than credit
and now includes a much broader range of financial products,
which can be accessed and used by both poor and very
poor people.’ The addicted users of microfinance come from
people, who don’t have access to formal finance and are feed
from informal finance. ‘They are generally self-employed and
engage in small business enterprises such as farming, petty
trade, shop-keeping, street vending and food production.’3

In the 17th century, Mr. Jonathan Swift, a nationalist and author,

pioneered the ‘Irish Loan Fund System’ in which urban and
rural poor people of Ireland had easy access to collateral free
micro-loans. At the end of the 1840s, his model had spread
all over Ireland with more than 300 clients. The main notion
behind this model was to allow micro-loans for a short period
of time and to charge reasonable interest rates In the 18th
century, the different types of savings and credit concepts,
which were devised in Europe, were keeping the image of
the poor in mind such as the’ In the 1870s, the German
States and the Rhine province in Europe had experienced a
sudden and intense growth of credit unions. Later, the model
of credit unions was adapted and replicated in various parts
of Latin America and continuously replicated in the rest of the
world. From the 1950s onwards, microfinance strategies and
models have been spreading rapidly, especially in developing
countries such as Bangladesh, Russia, Brazil, and India. As of
now, microfinance plays a significant role in development of

16
 Introduction

3rd world economies, as illustrated by the Grameen Bank in

Bangladesh, which reveals that many poor families came out
of poverty by taking microfinance loan. Microfinance began
to be known through the work of prominent
microfinance organizations like Banco-sol, Grameen Bank,
Village Banks and Self-Help Groups etc. which are playing an
important role in achieving the Milliennium Development
Goals (MDGs).1

The unforgettable contribution of microfinance to economic

development and poverty alleviation in India during the …
last.. decade cannot be ignored. Presently, the Indian market
is flooded by promoters/providers of microfinance. After
analyzing the fact that poor can repay on time and have good
repayment rate, which is revealed by Grameen Bank and
have changed the outlook of commercial banks towards poor
people. If we look at the history of the banking sector, India
had some very negative experiences in the past, such as the
massive loan waiver for 40 million defaulters in 1989, a rise
of the nation’s fiscal deficit up to 8% of its GDP, failed efforts
of poverty alleviation and women’s empowerment, economic
disparity, trade deficit, a drop in the foreign reserves, rise
of foreign debt, etc. The failures of the government in the
banking domain created a gap for informal financial sources to
gain popularity among the rural people of India. The informal
money sector is known under various names, as ‘Moneylender’,
‘Loan shark’, ‘Private Lender’, ’Pawn Broker’, and ‘Underground
Bank’ etc, as mentioned by Zhaang and Fang, in the Chinese
Business Review.13 To get a loan from an informal source is
quite easy because they hardly ask for legal formalities such
as collateral, documentation charge or official stamps, which
are required when applying for a bank
loan.

17
Dushyant Sethiya Microfinance: A Helping Hand

In 1970 an alternative financial source emerged and started

replacing formal bank and money lenders sources gradually.
This new money source, termed microfinance, provides easily
accessible loans for poor people, with reasonable interest
rates. This semi-formal money source sprouted and nourished
from the co-operative movement and credit union theme,
which was devised a long time ago in the Western World.
Noble Laureate Mohammad Yunus developed the model of
the ‘Grameen Bank’ and the SHG model, the ‘SHGs-Linkage
Programme (SGBL)’, which was developed in India by SEWA
and is continuously spreading to other developing countries,
such as Brazil, Indonesia, Russia, and China. Amrita Batra
wrote in an article ‘At the dawn of the year 2007, which careers
are on the rise, times lists some new age careers as well as
some old-age ones that are booming’ published in the Times
of India, she further argues that ‘Micro-finance primarily
refers to the provision of financial assistance to members of
the poorest sections of society, who otherwise do not meet
the eligibility requirements for traditional financial services.’ 4

Our book will mainly focus on ‘Microfinance in India’. Ajay

Gupta who is the founder and CEO of ruralnaukri website in
an interview conducted by Wharton B-school said - ‘My
understanding of rural India is a less developed countryside
where the infrastructure is primitive, houses are of mud or
brick but rarely painted well, the primary source of livelihood
is agriculture, employment opportunities in the organized
sector are negligible, eating choices are restricted to home-
cooked, simple food, schools are far away, health facilities are
rudimentary and – importantly – the youth, while energetic
and ambitious, are to be playing cards the whole day.’ On
the other side, Pankaj Gupta, Practice head - consumer &

18
 Introduction

retail, Tata Strategic Management Group, said, urban India

according to the Census of India, ‘constitutes places with a
population of more than 5,000, a population density above
400 per square km, all statutory towns, that is, all places with
a municipal corporation, municipal board, cantonment board,
notified area council, etc. and with 75% of the male working
population engaged in non-agricultural employment. All non-
urban is rural’.5

The reason behind the financial exclusion of rural people from

the banking sector is them being poor. Simply said, banks don’t
consider them as potential clients. Even the Government of
India has the same view and merely perceives them as grant-
takers. But, a few miraculous facts of microfinance came across
Bangladesh and India which changed the government’s view
of rural people from grant takers to potential entrepreneurs.

ARUNA ROY AND NIKHIL DEY in the ‘The Hindu Newspaper

Magazine : NREGA: Breaking New Ground’ said ‘The NREGA,
the flagship programme of the UPA government (Congress
Government), was revolutionary in its promise of inclusive
growth , the right to work and the dignity of labour and a
rational, participatory relationship with the state. And it has
mostly delivered.’12 The Indian Prime Minister, Mr. Manmohan
Singh said, ’with the allocation to NREGA increased by
Rs 390 billion this year, we have now to ensure that our
people get the best value for every rupee spent on their
behalf. Effective oversight of these programmes is therefore,
extremely important. In terms of outlays, the ministry of
rural development has the highest priority in our scheme
of things and that is a measure of our commitment to do

19
Dushyant Sethiya Microfinance: A Helping Hand

all that we can to get rid of chronic poverty, ignorance and

disease which still afflict millions and millions of people of our
country’. ‘The programme was also making a contribution to
financial inclusion. State governments are being encouraged
to make wage payments under the programme through banks
and post office accounts. Nearly 7.8 Crore of such accounts
have been opened. The growing practice of making use of the
financial institutions for disbursement of wages is one means
of reducing leakages and in often ensuring that wages are
paid in accordance with prescribed schedule’, reported by The
Economic Times.6

Michael Chu, senior lecturer in the General Management

Uunit at Harvard Business School said in a discussion on
Microfinance with HBS alumni - ‘poverty reigns, despite the
fact that since World War II organizations such as the World
Bank have poured resources into hundreds of schemes to
end poverty. The World Bank alone has dispersed about $550
billion since its founding in the 1940s, Chu said. Adding in
contributions from the “alphabet soup” of other organizations
with acronyms such as UNDP and EBRD probably means that
trillions of dollars have been deployed with little effect.’7 At
the world podium, International Organizations such as the
World Bank, the United Nations (U.N.), UNDP, EBRD and
NGOs collectively worked for poverty alleviation and women’s
empowerment to achieve the MDGs, but were never able to
achieve them. According to the United Nations website, ‘The
eight Millennium Development Goals (MDGs) – which range
from halving extreme poverty to halting the spread of HIV/
AIDS and providing universal primary education, all by the
target date of 2015 – form a blueprint agreed to by all the
world’s countries and all the world’s leading development

20
 Introduction

institutions. They have galvanized unprecedented efforts to

meet the needs of the world’s poorest’.8

According to World Bank, ‘The diversity of NGOs strains any

simple definition. They include many groups and institutions
that are entirely or largely independent of government and
that have primarily humanitarian or cooperative rather than
commercial objectives. They are private agencies in industrial
countries that support international development; indigenous
groups organized regionally or nationally; and member-groups
in villages. NGOs include charitable and religious associations
that mobilize private funds for development,
distribute food and family planning services and promote
community organization. They also include independent
cooperatives, community associations,water-user societies,
women’s groups and pastoral associations. Citizen Groups
that raise awareness and influence policy are also NGOs’.9

The article NGO Registration Methods-1 displayed on

ngosindia.com website, reports that NGOs are exempt from
income tax under the charitable entitlement, which is defined
under section 2 (15) of the Indian Income Tax Act. ‘In India
non-profit / public charitable organizations can be registered
as trusts, societies, or a private limited nonprofit company,
under section-25 companies. Non-profit organizations in India
(a) exist independently of the state; (b) are self-governed by a
board of trustees or ‘managing committee’/ governing council,
comprising individuals who generally serve in a fiduciary
capacity; (c) produce benefits for others, generally outside
the membership of the organization; and (d), are ‘non-profit-
making’, in as much as they are prohibited from distributing a
monetary residual to their own embers.10

21
Dushyant Sethiya Microfinance: A Helping Hand

Groups of different national governments and international

bodies, such as the UN and the WB, have declared similar goals
as their priority, such as rural financial inclusions, women’s
empowerment and poverty alleviation. So far, none of the
goals has been achieved. In the meantime, Mohammad Yunus
won the Nobel Prize in 2005, for his valuable work in the area
of microfinance. Professor Mohammad Yunus, a Bangladeshi
Banker and economist is the founder of the renowned ’Grameen
Bank’. He devised a new model to alleviate poverty and to make
money at the same time. Yunus not only devised a strategy
to help the poor, but also raised many out of poverty through
his long lasting endeavour in form of the “Grameen Bank”.
Since then the concept of microfinance began to emerge as a
new domain for business entity and also converged interests
of the different International Organizations as an effective
approach. In 2005, Hindu Business Lines published an article,
in which Y. S. P. Thorat, Managing Director of NABARD and
Graham A. N. Wright, an international expert in microfinance,
found that ‘In Bangladesh, 5 per cent of the Grameen Bank’s
clients graduated out of poverty every year by participating in
microfinance programmes and, more importantly, households
were able to sustain these gains over time based on the
Shahidur R. Khandker’s 1998 seminal study for the World Bank.’
11
In 1999, a study done by ‘Save The Children’ at Honduras
revealed that many poor families had sent their children
to school after participating in microfinance schemes. In a
conference on [‘Microfinance’], Lawrence Yanovitch, Director
of Policy and Technical Assistance at FINCA International,
said that, the experimental facts about microfinance reveal
that microfinance doesn’t only provide financial assistance
to poor people and help to alleviate poverty, but also helps
in women empowerment because majority of its
clients are women. Additionally, it also contributes to social
and

2
 Introduction

economic development as it increases consumer power, and

can contribute to a higher standard of health and education
which are part of the MDGs, commented by Wright and Thorat.
That’s why it has attracted the attention of International
Organizations and the business world.

23
 BIBLIOGRAPHY

INTRODUCTION

1) Mercy Corps (2008), ‘The History of Microfinance’, Posted on

April 14, 2006, Globalenvision.org [Website]

2) Thurman E. and Smith P. (2007) ‘A Billion Bootstraps,

‘Printed in the United States of America, Published by The
McGraw-Hill Companies, pp. 178-180

3) Cindy Lewis and Susan Sygall ‘Moving Towards Inclusion

’, Chapter 11: Access to Credit -- A Right, Not Just an
Opportunity: Leonard Cheshire International’ By: Sarah
Dyer, Leonard Cheshire International, Published by A Mobility
International USA Publication sponsored by USAID
<http://www.miusa.org/publications/books/mti/chapter11>

4)Batra A. (2007), ‘At the dawn of the year2007,which careers are

on the rise times lists some new-age careers as well as some
age-old ones that are booming’ ,Times of India Mumbai website
[Online] Section: Education Times pp.43

5) India Knowledge @ Wharton, ‘Why companies see bright

prospects in rural India’

< h t t p ; / k n o w le d g e . w h a r t o n . u p e n n . e d u / in d ia / a r t i c le .cfm?ar
ticleid=4386>

6) The Economic Times, Edition 10th Sept 2009, Miles to go on

NREGA: PM

101
Dushyant Sethiya Microfinance: A Helping Hand

7) Martha Lagace (2004), Harvard Business School: Working

Knowledge, Research & Ideas, ‘Microfinance: A Way Out for the
Poor ‘, Published: June 28, 2004’

8) United Nations (2008), ‘What are the Millennium Development

Goals? ‘, Un.org [Website] [Online]

9) Gdrc.org website, ‘World Bank and other definitions of an

NGO’, sourced from the World Bank, 1990 and “NGO
Workshop” organized at the Asian Institute of Technology,
Bangkok, October 17-21, 1988

10) Ngosindia website (2008) ‘NGO Registration Methods-1,’

11) Wright G.A.N and Thorat. Y.S.P (2005)’ Microfinance:

Banking for the poor, not poor banking’, thehindubusinessline
website [Online] Internet Edition Financial Daily from THE
HINDU group of publications ,Tuesday, Mar 15, 2005

12) The Hindu Newspaper [ Online Edition], Sunday Jun 21,

2009, ‘ NREGA: Breaking New Magazine Ground by Aruna Roy and
Nikhil Dey.

13) Zhang, Y. and Fang, Q. (2005) ‘The Reasons Why Informal

Finance Exists and Some Suggestions on Policy’, Aug 2005
volume 4 No.8 (Serial No.26) Chinese Business Review, ISSN
1537-1506,USA,china-review.org [Website] [Online] [Accessed
on 5th June 2008] from the world wide web.
<http://www.china-review.org/news/manage/image/10-
The%20Reasons%20Why%20the%20Informal.pdf>’

102
 Bibliography

CHAPTER 1: THE POOR AND THEIR

NEEDS

1) Economy watch Website, Section: Indian Economy, Article:

‘Poverty in India’, Copyright © Stanley St
Labs

2) Eswaran M.and kotwal A. (2007, Ninth Impression),

‘Why poverty persists in India, an Analytical Framework for
Understanding the Indian Economy’, Published by Oxford
University Press, Printed at Sai Printopack Pvt. Ltd., New
Delhi, India.

3) ENS ECONOMIC BUREAU (2008),’FM hikes farmer debt relief

to Rs 71,680 cr’, Saturday, May 24, 2008, Business Section,
Indian Express Newspapers (Mumbai) Ltd, Indian express
Website

4) Iwatch (2006) ‘Poverty line’, wakeupcall.org[ Website]

5) Soto H.D (2000),’The Mystery of Capital, why capitalism

triumphs in the west and fails everywhere else’, Published by
Basic Books, A Member of the Perseus Books Group, Printed
in the United States of America.

6) Basixindia website (2003),’Microfinance in India’, pp1-10

<http://www.bwtp.org/arcm/mfdm/Web%20Resources/
General%20MF%20Resources/micro_finance_in_india.pdf>

7) Think Quest Team 00282 (2006),’ Glossary of Poverty-

Related Terms’, library.thinkquest.org
[Website]

8) Rutherford S. (Fifth Impression, 2004) ‘The poor And Their

Money’, Published in India by Oxford University Press New
Delhi, pp. 1-120.

103
Dushyant Sethiya Microfinance: A Helping Hand

9) Murray, S. (2008), ‘Microfinance unlocks potential of the

poor’, Sustainable Banking, Financial Times special Report
Tuesday June 3, 2008, pp.4.

10) SSSKS Co-operative Credit Society Ltd. Mandsaur (M.P),

India

11) Hannover, W., NABARD and GTZ (MAY 2005) ‘Impact

of Microfinance Linkage Banking in India on the Millennium
Development Goals’, portals.wi.wur.nl[Website][Online]
[Accessed on 10th June 2008] from the World Wide Web.pp1-
13 <http://portals.wi.wur.nl/files/docs/ppme/05-0252.pdf>

12) Answers Corporation (2008), ‘Dictionary: emergency’,

Answers.com [Website] [Online] [Accessed on 5th May
2008] from the World Wide Web
<http://www.answers.com/emergency>

CHAPTER 2: MAINSTREAM BANKS AND THEIR

BUSINESS METHODS

1) Thomas Herbert Russell, A. M., Ll. D. (1916) ‘Banking,

Credits And Finance’, Chapter III. The Origin Of Banking, Topic:
Origin Of The Word “Bank” Publisher Whitman Publishing Co
(1916).

2) Copyright © 1996-2010 IndiaMART InterMESH Limited,

Article: Reserve Bank of India (RBI)

http://finance.indiamart.com.investment_in_india/rbi.html

3) Misra, A. (2006, Draft) ‘Microfinance in India & Millennium

104
 Bibliography

Development Goals: Maximizing Impact on Poverty’, Discussion

Paper for workshop on World Bank, warwick.ac.uk [Website],
pp1-20.

4) Roland C. (2006) European business school,’ Banking

Sector Liberalization in India’, Indian Institute of Capital
Markets 9th Capital Markets Conference Paper, papers.ssrn.
com [Website]

5) Sijtsma L. (2007), ‘Status Report Microfinance in India

September 2007’, Netherlands Platform for Microfinance,
Microfinance.nl [Website]

6) Topic: ‘State Bank of India’, International Directory of

Company Histories, Vol.63. St. James Press, 2004

7) Business.mapsofindia [Website] Article: India Planning -

‘First Five Year Plan India’

8) Sriram, M.S and Fisher, T. (2002), ‘Beyond Micro-Credit

putting development back into Micro-Finance’ Published by
Oxfam Oxford (U.K) and New Economics Foundation (London)
at Vistaar Publications (New Delhi, India) pp.1-332

9) Bernstein S.A (2005-06),’Managing Credit Risk in

Microlending Operations ‘, uncdf.org [Website] pp9-11

10) Goldberg, M.,Bowles, S. and Miller, J. (2003),’To Get That

Little: A Computational Model of Microfinance,’ Santafe.edu
[Website] [Online] pp1-14.

11) Martha Lagace (2004), Harvard Business School: Working

Knowledge, Research & Ideas, ‘Microfinance: A Way Out for
the Poor ‘, Published: June 28,
2004

105
Dushyant Sethiya Microfinance: A Helping Hand

12) Srinivas H (2008), ‘Money Lenders-The Business of

Lending: A Typology of Money Lenders’, gdrc.org

13) Srivastava P. and Basu P. (2005) ‘Scaling-up Microfinance

for India’s Rural Poor’, WPS 3646 National Council of Applied
Economics Research, India, World Bank Policy
Research Working Paper 3646, June 2005, chicago.ssrn.com
[Website]

14) Zhang, Y. and Fang, Q. (2005) ‘The Reasons Why Informal

Finance Exists and Some Suggestions on Policy’, Aug 2005
volume 4 No.8 (Serial No.26) Chinese Business Review,
ISSN 1537-1506,USA,china-review.org [Website] <http://
www.china-review.org/news/manage/image/10-The%20
Reasons%20Why%20the%20Informal.pdf
>

15) Ghosh R. (May 2005),’Microfinance in India: A Critique’,

chicago.ssrn.com website, pp1-20
<http://poseidon01.ssrn.com/delivery.php?ID=827006111
1171000771261221000890041111030490140930610251
2607400312602508800406400006709803005200201501
7013090027066072017121105008031038092064025017
09010111100600806103700012408800511912106408008
0095&EXT=pdf>

CHAPTER 3: MICROFINANCE APPROACHES IN VARIOUS

COUNTRIES AND PERIODS

1) Association of British Credit Unions, History of Credit Unions

(2002), ‘Brief History of the Credit Union Movement,’[Accessed
on 18th June 2009],abcul.org[Website][Online]

2) ‘A Brief History of AmeriCU Credit

Union’
http://www.americu.org/about/

106
 Bibliography

3) The Canadian Encyclopedia © 2010 Historica-Dominion,

Section-Historica-Dominion, thecanadianencyclopedia [Website]

4) Rogaly B., Fisher T. and Mayo E. (1999),’Poverty Social

Exclusion and Microfinance in Britain’, Publication by Oxfam GB
and New Economics Foundation, Printed by Information Press,
Eynsham, and pp 104-105, 64-65

5) Mainsah E.,Heuer S.R., Kalra A. and Zhang Q. (2004),’Grameen

Bank: Taking Capitalism to the Poor ‘Chazen Web Journal of
International Business Spring 2004, Columbia business school,
gsb.columbia.edu pp 1-10

6) Think Quest Team 00282 (2006),’ Glossary of Poverty-

Related Terms’, library.thinkquest.org
[Website]

7) Nair A. (2005), ‘Sustainability of Microfinance Self Help

Groups in India: Would Federating Help? ‘, World Bank Policy
Research Working Paper 3516, February 2005, wds.worldbank.
org website, pp 1-10

8) In.rediff.com website (2007), ‘Is microfinance a success in

India?’ Section: Business, November 08,
2007

9) Bank Rakyat Indonesia (2008) ‘History’, bri.co.id [Website]

‘Bank Rakyat Indonesia’ bwtp.org

[Website]

10) Rutherford S. (Fifth Impression, 2004) ‘The poor And Their

Money’, Published in India by Oxford University Press New
Delhi, pp. 1-120.

11) Morduch J. (1999) ‘The Microfinance Promise’ Journal of

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Dushyant Sethiya Microfinance: A Helping Hand

Economic Literature vol.xxxvii pp.1569- 1614 (December,

1999) < http://www.nyu.edu/projects/morduch/documents/
microfinance/Microfinance_Promise.pdf
>

CHAPTER 4: MICRO – FINANCE INSTITUTIONAL STRUCTURES

IN INDIA

1)Sksindia.com Website]

2) Wanchoo (2007),’ Micro-finance in the India: the changing

face of micro-credit Schemes.’ Unpublished, Mpra.ub.uni-
muenchen.de[ website], pp 1-10

3) Sriram M.S. and Upadhyayula R. (2002),’The transformation

of microfinance in India: experiences, options and future’
iimahm.ernet.in [website]

4) Rediff.com (2009), ‘All you wanted to know about NBFCs’,

Section Business Special.

5) Arijit Chakraborty,’ Arijit Chakraborty - ALG India Law

Offices’, legalserviceindia [website]

6) Sijtsma L. (2007), ‘Status Report Microfinance in India

September 2007’, Netherlands Platform for Microfinance,
Microfinance.nl [Website]

7) ReserveBankofIndia(2005-06),’REPORTONTRENDANDPROGRESS
OF BANKING IN INDIA 2005-06’Published by A.Karunagaran for the
RBI,Printed by A.Karunagaran at ALCO cooperation ,Mumbai, India,
rbidocs.rbi.org.in [website] pp 150-180.

108
 Bibliography

8) Bandyopadhyay T. (2001)’ RBI cracks down on local area

bank’, Edition: November 5, 2001 section: Report, Rediff.com
[Website]
9) The Hindu Business Line (2003), ‘No new licences for
local area banks’, The Hindu Business Line Internet Edition
, Wednesday, Aug 27, 2003, Section: Money & Banking -
Regional Rural Banks, thehindubusinessline.com [Website]

10) Coastal Local Area Bank Limited (2007),’Coastal Bank’,

coastalareabank.com
[Website]

11) www.geocities.com/kstability/learning/banking2/lab.html

12) RBI, ‘Brief History of Urban Cooperative Banks in India’,

[Accessed on 27th June, 2009] rbi.org.in [Website]

13) Ramesha K. (2003) ‘Cooperative Banking and Financial

Sector Reforms in India -Agenda for Future Research’,
International Conference on Mapping Co-operative Studies in
the New Millennium, May 28-31, 2003, web.uvic.ca [Website],
pp1-10

14) Reserve Bank of India (2005-06),’REPORT ON TREND

AND PROGRESS OF BANKING IN INDIA 2005-06’Published by
A.Karunagaran for the RBI,Printed by A.Karunagaran at ALCO
cooperation ,Mumbai, India, rbidocs.rbi.org.in [website], pp
150-180.

15) International Co-operative Alliance( 2005-2010 ),ica.coop

[website]

16) Association of British Credit Unions, History of Credit Unions

(2002), ‘Brief History of the Credit Union Movement, ’[Accessed
on 18th June 2009],abcul.org[Website]

109
Dushyant Sethiya Microfinance: A Helping Hand

17) Verma S.K (2004),’ Cooperative Centenary in India’, New

Sector Magazine, Issue No.61, April/May (2004),National
Cooperative Union of India, Caledonia .Org.UK [Website]
pp.1-2

18) Sijtsma L. (2007), ‘Status Report Microfinance in India

September 2007’, Netherlands Platform for
Microfinance, Microfinance.nl [Website]

19) Mahajan V. and Nagasri G, Basix (1999),’ Building Sustainable

Microfinance Institutions in India’, Session: India: The Emerging
Microfinance Market, Wednesday September, 29th,
1999, Afternoon, wiwi.uni-frankfurt.de [Website]

20) Rutherford S. (Fifth Impression, 2004) ‘The poor And Their

Money’, Published in India by Oxford University Press New Delhi,
pp. 1-120.

21) Nair A. (2005), ‘Sustainability of Microfinance Self Help Groups

in India: Would Federating Help? ‘, World Bank Policy Research
Working Paper 3516, February 2005, wds.worldbank.org website
[Online] pp 1-10

22) Manipuronline (2002) ‘Stagnant Development In North-East’,

by B. Thohii Hiimai, manipuronline
website]

23)Sksindia.com
[website]

24) ‘SKS Microfinance may launch IPO in 2010’, Published on Fri,

Mar 13, 2009, The Hindu Business Line, Online edition, www.
moneycontrol.com

25) MADHAV A CHANCHANI (November 10 2008) ‘SKS

110
 Bibliography

Microfinance Raises Rs 366 Cr In fourth Round’, www.vccircle.com

26) Sriram, M.S and Fisher, T. (2002), ‘Beyond Micro-Credit
putting development back into Micro-Finance’ Published by
Oxfam Oxford (U.K) and New Economics Foundation (London)
at Vistaar Publications (New Delhi, India) pp.1-332

27) www.sewabank.com

28) www.travelpod.com

29) www.basixindia.com

30) Rediff.com (2009), ‘All you wanted to know about NBFCs’

<http://www.rediff.com/money/2007/jul/20nbfc.htm>

CHAPTER 5: BANKING LIBERALISATION IN INDIA

1) Pranav Nambiar / DNA (Monday, August 17, 2009) ‘Every

second loan’s from a nationalised bank’, Section : Money
–Report,
www.dnaindia.com

2) Mohana Dam(Jul 20, 2009) ‘Indira’s nationalisation of

banks saved country during recession, says Pranab’ www.
expressindia.com

3) Roland C. (2006) European business school,’ Banking

Sector Liberalization in India’, Indian Institute of Capital
Markets 9th Capital Markets Conference Paper, papers.ssrn.
com [Website]

4) Mahajan V. and Nagasri G, Basix (1999),’ Building

Sustainable Microfinance Institutions in India’, Session: India:
The Emerging Microfinance Market, Wednesday September,

111
Dushyant Sethiya Microfinance: A Helping Hand

29th, 1999, Afternoon, wiwi.uni-frankfurt.de [Website]

5) Nandan Nilekani (2008),’Imagining India’, pp.1-150, first

published in Allen Lane by Penguin Books India 2008, printed
at Gopsons Papers Ltd. Noida (India).

6) David Smith (2008), The Dragon and the Elephant, pp.60-

70, printed and bound in Great Britain by CPI bookmarque,
Croydon, CR) 4TD

7) Abhiman Das, Ashok Nag, Subhash Ray, ‘Liberalization,

Ownership, and Efficiency Indian Banking: A Nonparametric
Approach’, www.gbv.de/dms/zbw/534915353.pdf

8) Bosworth B. (2008), ‘India: the Emerging Giant’, The

Brooking Institution, Washington D.C,
Brookings.edu [Website] pp.1-50
<http://www.brookings.edu/~/media/Files/events/2008/0214
_india/20080214_india.pdf>

9) Sriram M.S. and Upadhyayula R. (2002), ’The transformation

of microfinance in India: experiences, options and future’,
www. iimahm.ernet.in [website]

10) Gurcharan Das (2002), ‘ India Unbound’, Printed and

bound in Great Britain by Bookmarque Ltd. Croydon Surrey

11) Pranav Nambiar (2009), ’Every second loan’s from a

nationalised bank’ <http://www.dnaindia.com/money/report_
every-second-loan-s-from-a-nationalised-bank_1282908>

112
 Bibliography

CHAPTER 6: MICROFINANCE – AN INDIAN EXPERIENCE

1) Rutherford S. (Fifth Impression, 2004) ‘The poor And Their

Money’, Published in India by Oxford University Press New
Delhi, pp. 1-120. [Accessed from the Library of University of
Leeds]

2) The Mahatma Gandhi National Rural Employment

Guarantee Act, www.nrega.nic.in

3) Hochberg, F.P (2002)’ Practical Help for Afghans’, The New

York Times Published on January 5, 2002 [Online edition]
Section: Opinion, http://query.nytimes.com

4) Isern J., CGAP and Porteous D. (Issue 17 / October 2005),

‘Commercial Banks and Microfinance: Evolving Models of
Success’, uncdf.org website

5) Wright G.A.N and Thorat. Y.S.P (2005)’ Microfinance:

Banking for the poor, not poor banking’, thehindubusinessline
website [Online] Internet Edition Financial Daily from THE
HINDU group of publications ,Tuesday, Mar 15, 2005 .

6) Parker E. (2008), ‘The Weekend Interview with Muhammad

Yunus: Subprime Lender’ The Wall Street Journal. (Eastern
Edition). Newyork.N.Y. Mar 1, 2008.pg.A.9
ABI/INFORM Global

7) Kennedy-Payen, M.H and Neville P.W(issue 13/june 2005),

‘Experts and Emissaries Convene to Discuss Innovations,
Challenges and Future: International Year of Micro credit and
Georgetown University Conference on Microfinance’,
uncdf.org [Website]

113
Dushyant Sethiya Microfinance: A Helping Hand

8) Sarkar, K. (28th April, 2006, Guest Column) ‘India: A hotspot

for micro finance’, ia.rediff.com [Website] [Online] [Accessed
on 6th April] from the World Wide Web
<http://ia.rediff.com/money/2006/apr/28guest.htm>

9) Microfinancegateway.com Website (2007), ‘Microfinance

India Investment Fair to Be Held October 9, 2007’, ACCESS
Development Services Series of Short Training Programs on
“Investment Readiness for MFIs” To Precede Event in August
2007’, [Online] [Accessed on 3rd April 2008] from the World
Wide eb.pp1-
2.
< http://microfinancegateway.com/files/42477_file_MF_
India_Investment_Fair.pdf >

10) Aghion D.B and Murdoch J. (2005) ,‘The Economics

of Microfinance’ [Book Title] The MIT Press [Publication]
Massachusetts [Place] pp.1-5 [Online]

11) Murray, S. (2008), ‘Microfinance unlocks potential of the

poor’, Sustainable Banking, Financial Times special Report
Tuesday June 3, 2008, pp.4.

12) Ifmr.ac.in website (2007), ‘Microfinance India Conference-

2007‘,
[Online]

13) Gandhi V. and Khosla V. (2006) ’ Scaling up microfinance

in India ’, the Economic Times Editorials 15th Jun, 2006 TNN
[Online edition] Economictimes.indiatimes.com [Website]

14) NWP and IRC (2007) ’Microfinance for water, sanitation

and hygiene’, waterland.net [Website], www.waterland.net

15) Sriram, M.S and Fisher, T. (2002), ‘Beyond Micro-Credit

putting development back into Micro-Finance’ Published by

114
Oxfam Oxford (U.K) and New Economics Foundation (London)
at Vistaar Publications (New Delhi, India) pp.1-332

16) Lakshman, N. (2006) ’India’s BIG microfinance revolution’,

Business week, 25th September 2006, Rediff.com [Website]

17) Fiorina, P. (2005) ‘Microfinance: what role for commercial

banks?’ Sept 28, 2005 France (Paris), www.celent.com

18) Microfinance Information Exchange,Inc (2006),

‘Transparency and performance in Indian microfinance 2005’,
www.mixmbb.org [website] , pp.1-2.

19) In.rediff.com website (2007), ‘Is microfinance a success in

India?’ Section: Business, November 08, 2007 [Online]

20) Burgis T. (2008), ’African Farmers Sow More Profitable

Seeds’, Sustainable Banking Financial Times Special Report
Tuesday June 3 2008, pp.4.

CONCLUSION

1) Menezes, F.A ‘swords and ploughshares: A Journal of

International Relations’, American.edu [Website] <http://
www.american.edu/sis/students/sword/spring99/INDIA.
PDF>