Though, we are of the belief that sustainable financial inclusion is achievable only through mainstream financial institutions i.e. banks, as the penetrative reach of banks is low and they have still not been able to reach a large number of villages in the country, other intermediaries, which have the ability to reach the excluded segments of the society are required.
Microfinance institutions fill this niche space and to that extent, play a critical role in financial inclusion. The MFIs have served the underserved/un-served populace in the last few years and have improved access to credit.