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According to a recent industry report by the Microfinance Industry Network (MFIN), NBFC-MFIs have emerged as the largest providers of micro-credit in the country by the end of the 2023-24 fiscal year. The report highlights significant trends in the microfinance sector, shedding light on the distribution of micro-credit among various financial institutions.
Key Findings:
1. NBFC-MFIs Lead the Way
2. Scheduled Banks' Contribution
3. Other Financial Institutions
Implications for the Microfinance Sector:
The dominance of NBFC-MFIs in the microfinance sector underscores their crucial role in providing financial services to underserved and unbanked populations. This trend indicates a growing reliance on NBFC-MFIs for micro-credit, which can be attributed to their specialized focus on microfinance, flexibility in operations, and ability to reach remote areas.
Scheduled banks, while significant contributors, seem to play a supportive role in the sector, complementing the efforts of NBFC-MFIs. The collaboration between different types of financial institutions is essential to ensure comprehensive financial inclusion across the country.
About MFIN:
The Microfinance Industry Network (MFIN) is an umbrella body that represents the interests of microfinance institutions in India. It aims to promote sustainable and responsible microfinance practices, advocating for the sector's growth and development.