Effect of E-Microfinance on Economic Growth in India

Abstract

This paper examines the effect of E-microfinance on economic growth in India. Emphasis is made on the Major role of microfinance institutions in India which is poverty reduction. Assets, Deposit Liabilities, Loans & advances microfinance banks were used the activities of microfinance institutions in India while Gross Domestic Product was used as for economic growth. The importance of Electronic Microfinance Institutions in India economy cannot be over emphasized; this is because it plays a vital role in the financial intermediate on process and also in the lives of the low income earners whom constitute over 70 per cent of the Indian population. Employment and income generation are important of poverty alleviation effort, building capacities for wealth creation among enterprising poor people and promoting sustainable, Agriculture and microenterprise, Rural people are empowered through Electronic microfinance loans and services, and hence small scale agricultural practice and microenterprise is developed. Electronic Microfinance is an intervention based on Social Intermediation in which poor people can mobilize their savings, link it with credit and finally become self-employed. It results in building social capital. This study is based on existing literature Review and some of the has been collected from Nabard annual Reports, progress status of Microfinance of each state and RBI reports etc. Although, the Indian Government has launched several subsidized microfinance programme for the benefit of the very poor section of the society and the cooperatives weaker section of the society could not be turned around. Of late, electronic microfinance has emerged as a Catalyst of rural social development, especially in the overpopulated country like India. The impact of micro finance programme especially through Self Help Groups has been effective in making positive social change to all members, irrespective of the direct borrowers of the micro credit. Microfinance institutions (MFIs) in India exist as NGOs, Section 25 companies and Non-Banking Financial Companies (NBFCs). Commercial Banks, Regional Rural Banks (RRBs), cooperative societies and other large lenders have played an important role in providing refinance facility to electronic MFIs. With financial inclusion emerging as a major policy objective in the country, Microfinance has been found to be playing a vital role for extending financial services to unbanked sections of population. The electronic microfinance services of microfinance not only uplifted the poor from income poverty but it also from the knowledge level of poverty. Hence, easily accessible and affordable “e-microfinance services “should be provided to the vulnerable poor who are excluded socially and economically for a long journey period of time. The Indian state of electronic microfinance industry has grown over the decade across with specific key indicators of microfinance (i.e. Outreach, loan, and savings etc., the number of electronic microfinance active borrowers increased Current Research Paper of the Electronic microfinance institutions. A review of past literature was conducted and it was found that the Electronic Microfinance of data flow and security, access to credit Through Electronic Microfinance, as well as cost were restricting the microfinance institutions from properly adopting Electronic technology into their operations of Electronics Microfinance of lending and borrowing of money. Hence, proper structuring of both core and additional system of technology had been proposed through the implementation of Electronic Technology, Electronic technology and also process automation technology. Hence, proper structuring of both the core and additional systems of technology has been Implemented through the implementation of the Electronic Microfinance Management Information System, Electronic technology Based Microfinance, as well as process automated technology Based Microfinance. Although the findings reveal that the loopholes Caused by the various problems Electronic microfinance operations could be solved with the recent advancement of technology, many microfinance institutions are avoiding the implemented of technology due to the realization of the high cost and lack of major participation from clients, which, in turn, affects the demand and supply in the electronic microfinance market of india. The advancement of E-Microfinance, can be solved with the introduction of systems to adequately synchronize the data Statistics Mathematical management of the microfinance institutions so that hence, the Major objective of Electronic microfinance institutions to help improve the lives of the poor in developing countries would be greatly achieved.

Keywords: Microfinance Institutions, E-Microfinance, E-Microfinance Management, Microfinance Operation, Electronic Technology, India