Notice of RetractionMicrofinance in Indian banking industry and its future

Notice of Retraction

After careful and considered review of the content of this paper by a duly constituted expert committee, this paper has been found to be in violation of IEEE´s Publication Principles.

We hereby retract the content of this paper. Reasonable effort should be made to remove all past references to this paper.

The presenting author of this paper has the option to appeal this decision by contacting TPII@ieee.org.

Indian banking system, which is among the largest banking networks in the world, did not reach most of the rural poor in India. About 70% of the Indian population from rural areas accounted for only 30% of bank deposits. In the early 1990s, to provide credit and savings services to the poor, microfinance was envisaged. By the mid 1990s, several mainstream banks began providing credit and savings facilities to SHGs that built credible financial discipline. The government and RBI announced several measures to boost microfinance activities in the country. With increase in competition and availability of funds, the Indian microfinance sector could be the ultimate beneficiary. This paper is an attempt to understand microfinance in India and also to make a comparative analysis between public and private sector banks with respect to micro financing.