Role of Microfinance:-Microfinance Microcredit Program was first launched in 1976 in Bangladesh with the promise of providing credit to the poor without collateral, reducing poverty and unleash the human creativity and efforts of the poor. Microfinance impact studies have demonstrated that: • Microfinance helps poor households meet their basic needs and protects them against risks. • The use of financial services by low-income households leads to improvements in assets -economic well-being of households as well as the stability and growth of businesses. • By supporting the economic activity of women. participation, microfinance empowers women, thereby promoting gender equity and improving household well-being.• The level of impact is linked to the length of time clients have had access to financial services.Strategic policy initiativesSome of the most recent strategic policy initiatives in the field of microfinance taken by the government and regulatory bodies in India are: • Task Force on Credit to the Poor through SHGs, NGOs, NABARD, 1995 • Task Force National on Microfinance, 1999 • Working Group on Financial Flows to the Informal Sector (established by PMO), 2002 • Microfinance Development and Equity Fund, NABARD, 2005 • Working Group on Financing of NBFCs by Banks- RBIActivities in microfinanceMicrocredit: This is a small amount of money lent to a customer by a bank or other institution. Microcredit can be offered, often without guarantee, to an individual or through group loans. Micro-savings: These are deposit services that allow you to save small amounts of money for future use. Often without a minimum balance requirement, these savings accounts allow households to save in order to meet unexpected expenses and plan for future expenses.Micro i...... middle of paper ...... alai N and Rajeswari, (2001), “Nature and performance of informal self-help groups – a case of Tamil Nadu”, Indian Journal of Agriculture Economic, Vol.56, No.3, July-September, Pp.453. Nedumaran S, K. ​​Palanisami and L.P.Swaminathan, (2001), “Performance and impact of self-help groups in Tamil Nadu”, Indian Journal of Agriculture Economic, Vol.56, No.3, July-September, Pp.471 . Puhazhendhi, V. (2000), “Evaluation Study of Self-Help Groups in Tamil Nadu, National Bank for Agriculture and Rural Development”, Mumbai. crisil.com/pdf/ratings/CRISIL-ratings_india-top-50-mfis.pdf‎ http://www.slideshare.net/yogi3250/impact-of-micro-finance-on-living-standard-empowerment-and- Poverty Reduction of Poor Women, A Case Study from North India http://www.scribd.com/doc/48947731/A-PROJECT-REPORT-ON-MICROFINANCE-IN-INDIA http://www.scribd.com/doc/48947731/A-PROJECT-REPORT-ON-MICROFINANCE-IN-INDIA http:// www.slideshare.net/nehajainmba/neha-jain-report-16379475