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VOL. 11, ISSUE 8 (2025)
The Impact of Government Policies on the Growth of Microfinance Institutions in Bihar
Authors
Aprajeeta Gautam, Dr. Ajoy Kumar
Abstract
Microfinance institutions (MFIs) play an
important role in providing financial services to low-income individuals and
marginalized communities. In Bihar, a state in India with a high population
living below the poverty line, MFIs have been instrumental in promoting
financial inclusion and empowerment of poor households. However, their growth
has not been without challenges. The government policies and regulations
surrounding microfinance have had a significant impact on the operations and
sustainability of these institutions. In addition, following this act, many
states including Bihar also implemented stricter regulations on MFIs, making it
more difficult for them to operate. The government's focus on increasing access
to formal banking services through initiatives like Jan Dhan Yojana has also
impacted MFIs' outreach efforts. With easier accessibility of traditional banks
for basic savings accounts and loans at lower interest rates compared to MFIs,
the demand for their services decreased significantly.
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Pages:119-122
How to cite this article:
Aprajeeta Gautam, Dr. Ajoy Kumar "The Impact of Government Policies on the Growth of Microfinance Institutions in Bihar". International Journal of Commerce and Management Research, Vol 11, Issue 8, 2025, Pages 119-122
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