A considerable amount of work needs to be accomplished in terms of outreach to make a serious dent on poverty and realize the long cherished goal of Vision-2020. However, the logic and rationale of SHG-based microfinance have been established firmly enough in the sense that micro credit has effectively graduated from an "experiment" to a widely-accepted paradigm of rural and developmental financing in India.

Indian banking scenario is very dynamic, fast changing in its dimension and is understanding the complex environment in the right perspective. The paradigm shift in the banking structure has made the rural banking sector more customer-centric. The interest in microcredit and microfinance in the form of group-lending without collateral has been increasing inspired by the remarkable success of institutions like the Grameen Bank in neighboring Bangladesh, BRI, BancoSol and others. The situation in India is far below the international standards, as both microfinancing and self-help groups are at their inception stage in the country.

In this context, it is essential to analyze the rudimentaries of Nabard and Agriculture University catering to the needs of microfinance. The "SHG-Bank Linkage Program" aimed at connecting self-help groups of poor people with banks and in the process created the largest microfinance network in the world.

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