Analysis of the Double Bottom Line Performance of Microfinance Institutions in India and the Need for Regulation in the Indian MFI Sector

Poverty and Financial exclusion are the greatest challenges facing an emerging economy like India. Many countries, including India, had implemented subsidised credit to irradicate poverty, which only increased NPA (Non-Performing Assets). MFIs (Microfinance Institutions) were formed bridge gap between formal financial sector financially excluded. Social commitment forms one of basic characteristics MFIs, now its scope is broadening social performance. However, any other organisation, continue their operations in long run, sustainability a key determinant for MFIs. Thus, double bottom line commitments imply balancing Certain developments recent years brought fresh focus on problem regulation field microfinance. In present scenario, Indian MFI largely unregulated. variety legal found NBFC-MFIs (Non-Banking Companies-Microfinance Institutions), NBFCs, SHGs (Self Help Groups), Society, NGOs (Non-Governmental Organisations), Trusts, Sec. 8 Company, etc., among lion's share goes NBFC-MFIs/NBFCs. The paper analyses bottom-line performance India using secondary data extracted from various reports Sa-Dhan, World Bank, RBI (Reserve Bank India). also attempts highlight need regulatory body guide, supervise regulate different players sector.