Regulation in the Microfinance Sector: Challenges and Relevance for Annapurna Pariwar

Samapti Guha ()
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Samapti Guha: Tata Institute of Social Sciences, School of Management and Labour Studies, Centre for Social Entrepreneurship

A chapter in Building Pathways to Women’s Empowerment, 2026, pp 117-137 from Springer

Abstract: Abstract The microfinance sector in India has transformed over the last five decades. The regulatory structure of this sector has evolved significantly. In India, microfinance institutions initially adopted the oldest structures of cooperatives and non-profits, such as trusts and societies. In the nineties, when NABARD started the world’s largest microfinance programme, the SHG-bank linkage programme, there was a transition in the sector. Several microfinance institutions transformed from non-profits to not-for-profits and for-profits. The regulatory structure of these MFIs has changed from trusts or societies to non-banking financial companies under the Section 25 Companies Act and Section 8 Companies Act, and later on, some of them transitioned to small finance banks under RBI regulation. Annapurna Pariwar started its microfinance journey 32 years ago. It is a group of six non-profit organisations. Microfinance is delivered under Annapurna Mahila Multi-State Co-op Credit Society Ltd. It is successfully empowering the marginalised section of women who are economically active in Maharashtra. Though several MFIs have transformed into NBFCs and small finance banks, Annapurna Pariwar, being a cooperative society, did not change its regulatory structure. It is worth studying the relevance of the cooperative (multi-state) structure in the microfinance sector and how Annapurna has addressed the challenges to retain this structure.

Keywords: Microfinance; Regulatory structure; Annapurna pariwar; Cooperative society; Nbfcs and small finance banks (search for similar items in EconPapers)
Date: 2026
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DOI: 10.1007/978-981-95-7159-8_6

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