Microfinance is an economic development tool whose objective is to assist the poor to work their way out of poverty. It covers a range of services which include, in addition to provision of credit, many other services such as savings, insurance, money transfers, counselling, etc. - Committee Report-2011, RBI. The development in Microfinance in India can be time lined into two phases. In Phase II, the formal financial bodies in India also joined this movement. High cost of mobilization, interest rates regulations, high transaction cost are the reasons which prevents banks to enter into rural...