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The issue of transaction cost (TC) has always been the concern of both researchers and policymakers in microfinance. This paper aims to measure the TC of borrowers across various microfinance business models in India.

To identify sources of the TC of the clients in the entire process of borrowing loan, the technique of process mapping has been used in this study. Using the data collected from randomly selected 700 clients under different microfinance models, the study has computed the different components of clients’ TC.

The results show that although SHG-Bank linkage model has more robust organizational design, its sluggish operational modalities has resulted in a higher client TC as compared to that in MFI lending model. The indirect TC (in terms of clients’ opportunity cost of time) occupies major share in clients’ TC, and strategies are required by MFIs/banks to reduce it substantially by using the appropriate technology.

The client TC can become one of the important factor to evaluate efficiency of the different models of microfinance. Policymakers can use the findings to reduce the clients’ TC by benchmarking best practices across all the microfinance business models.

The research paper offers an insight into different components of clients’ TC across different models of microfinance. So far, not much research has been carried out on the subject in Indian context.

Gender equality and women empowerment which are part of the United Nations Sustainable Development goals have attracted researchers and policymakers worldwide. Various programmes and interventions aiming at empowerment have been designed and implemented by both national and international agencies. One of the flagship programmes of NABARD introduced in the year 1992, the self-help group (SHG)–bank linkage model is also known for its impact on the availability of credit and empowerment of women. Later, the SGSY scheme was restructured into the National Rural Livelihood Mission (NRLM) in the year 2013. Initially, SHGs focussed on savings and credit linkage, but now the emphasis has been changed to generate livelihoods and economically empowering women on a sustainable basis through training women to establish micro-enterprises. In this facet, the journey of microfinance in empowering women is systematically analyzed. The state of Haryana has consistently outperformed other states in terms of economic and agricultural growth but it ranks poorly in terms of its key human development indicators. Despite high productivity and low poverty, the state faces challenges related to the health and nutrition of children. Literature provides evidence that the health and nutrition status of children and women is closely linked to women empowerment. Using secondary sources of data, we conclude that micro-finance can be a useful tool for empowering women provided the roadblocks are identified and the requisite support is provided to women entrepreneurs.

The purpose of this study is to gain meaningful insights into a microfinance programme in two different agro-ecological settings in India. The study, using primary survey data, attempts to examine individual, household and environmental characteristics that determine participation in a self-help group (SHG)–bank linkage programme in Odisha.

Primary data are collected by a stratified random sampling method. The sample size is 300 households and information is collected by canvassing a pre-designed schedule to women through door-to-door in-depth interviews. In addition, focus group discussions have been conducted to get qualitative information. A probit binary model is applied to examine the factors determining participation in a SHG–bank linkage programme. A composite index of women empowerment is computed taking three dimensions: autonomy, economic empowerment and the gender relationship. Further, ordinary least square multiple regression and treatment effect evaluation by propensity score matching is carried out to study the impact of participation on women empowerment.

The study finds that the programme has by-passed the poorest of the poor. It is observed, however, that participation in microfinance has a positive and significant impact on women empowerment.

Given the research methodology adopted in this study, one concern is whether the results generalise. Therefore, researchers are encouraged to test the proposed propositions further.

To improve status of women particularly in developing and underdeveloped regions, microfinance can act as a catalyst.

Microfinance in the form of SHG–bank linkage should be promoted, particularly for those social groups and religious communities where women are discriminated. Their participation in SHG–bank linkage programme will improve their social status through empowerment.

This study illustrates how microfinance can improve the status of women.

The purpose of this paper is to analyse the issues and concerns of Indian rural credit, which is a powerful tool for enhancing production and productivity and for poverty alleviation. Further it highlights some of the strategies adopted by Reserve Bank of India (RBI) to increase the rural credit facilities in the rural area of India.

The various tools of rural credit are analysed in detail. The Regional Rural Bank (RRB) who play a vital role in increasing the rural credits is studied. Self Help Group (SHG)‐Bank Linkage model of NABARD which creates an interface of the informal arrangements of the poor with the banking system is also analysed in detail.

Rural credits serve as a tool for providing a sustainable livelihood for millions of rural Indians who don't have a means of livelihood. Several organisations like RRBs, Microfinance Institutions, NABARD, etc. are playing a major role in providing rural credit facilities to rural India. Reserve Bank of India (RBI) is formulating and regulating the policies and procedure to make the rural credit facilities available to most of the needy. In spite of several efforts put up by various organisations to increase the rural credit facilities, several challenges will prevail in the years to come.

These aspects of the financial sector remain undervalued in mainstream literature on rural credit. With India being a nation in which more than 70 percent of people live in rural areas and rural credit being a powerful, and the only, tool for rural people in providing a means of livelihood, its importance and potential should be known to each individual.

The purpose of this paper is to explore the factors which are crucial in determining the extent of financial inclusion in geographically remote areas. The study also aims to provide suggestive measures for banks to tap unexplored markets.

Primary data were collected via structured questionnaire from 411 households from the states of Assam and Meghalaya in north‐east India. Factors significantly contributing to inclusion were identified using a logistic regression model.

Level of financial inclusion in north‐east India remains very low. Income, financial information from various channels and awareness of self help groups (SHGs), and education are influential factors leading to inclusion. Nearness to post office banks increases the likelihood of inclusion. Factors like area terrain and receipt of government benefit individually do not facilitate inclusion. However, recipients of government benefits in plain areas show increased level of inclusion.

The study was restricted to north‐east India, which limits the generalizability of the findings.

Banks and policy makers should work in close co‐ordination to spread financial information as those efforts are seen to directly impact inclusion, thereby providing new business opportunities to banks.

Using primary data, this study explores the potential predictors of financial inclusion in geographically remote areas. The study is unique in capturing the conditional relationships among variables which are bound to exist in real life scenarios. The findings of the paper are valuable for banks and policy makers.

Livelihood interventions are recognized as instruments to deliver sustainable development by addressing multidimensional issues of poverty. Despite several interventions, success still remains trivial due to various interactive determinants. The purpose of this paper is to present the hierarchical model of determinants of rural livelihood interventions in India.

This study adopts interpretive structural modelling (ISM) approach to explore the interactive relationships among determinants. Then, by using the Matrice d’ Impacts Croises - Multipication Applique a classement (MICMAC) approach, these determinants are classified into four groups on the basis of their driving power and dependence power.

The research findings include identification of nine critical determinants using hybrid research process. These nine determinants are classified into four distinct levels revealing different extents of influence on livelihood outcomes. The results show that strong emphasis should be given to local institutions and enclosing institutional environment in terms of good governance and better convergence.

The research findings offer insights for policy-makers on the hierarchical model among determinants. The study will help to close the existing dominant gap between theory and practice and imply corresponding methods and processes to deliver better livelihood outcomes.

This study contributes to policy literature by providing a structural model for interventions. This model identifies the dominant as well as mediating determinants and thereby guides policymakers to develop corresponding instruments and strategies. The study also contributes to rural development literature by identifying various interactive contextual relationships and thereby classifying the high priority determinants.

The purpose of this paper is to highlight the benefits of starting Islamic microfinance (IMF) in India and the core concepts of IMF.

Methodology of the paper is exploratory in nature and analysing of a new concept for implementation.

The brief findings have been that Indian masses, especially the poor minority community and lower middle class, are in a pathetic situation financially, as per survey analysis. IMF can play a very critical role in providing deliverance from financial slavery.

Limitations of the paper have been that the survey was done in a limited area and within a particular community and financial background.

Research finding of the paper demonstrates a practical roadmap or a blueprint on the need of starting IMF in India.

Social implications of the paper are that if the research findings are implemented and IMF were to be offered in India, the mass suicides committed specially by the Indian farmers can be contained to a great extent and can be virtually stopped.

The paper is original in concept, as IMF is totally new to the Indian scenario, and the paper is of high value for regulators to seriously think on initiating the IMF machinery in India for the benefit of all Indians.

This paper aims to understand how competing logics can co-exist in the organizational field of Indian microfinance.

The paper uses the theoretical lens of an organizational field to understand the composition of the microfinance field. Using the definition of an organizational field, key players in Indian microfinance are identified and their interactions within the field are analysed to understand the emergence and co-existence of multiple logics. The data used for this paper are collected from published work on Indian microfinance.

The co-existence of competing logics is sustained through the creation of two sub-fields within Indian microfinance. Each of the sub-field is dominated by one institutional logic. The field originated in developmental logic of microfinance and gradually adopted the banking logic post-2000. The sub-fields are dominated by different organizational forms with different nature of interaction within the field.

Actors within the field would experience institutional complexity with lesser intensity because of the existence of two distinct sub-communities with individual logic. Dual logics can sustain itself independently provided these are embedded in two different sub-communities. Despite the emergence of a new logic, the previous logic can still remain relevant given the enabling support from institutional infrastructure.

The manifestation of development and banking logics through practices and the belief system in Indian microfinance would offer useful insights for social entrepreneurs balancing the dual goals of hybrid organizations. Due to the sub-communities, a professional working with different forms of organization would experience little pressure to adjust to diverse logic and would also experience no or little identity conflict.

This paper focuses on the microfinance sector in India as an organizational field and explores the mechanism of co-existence of the dual goals of microfinance at the field level.