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Abstract
This is a pragmatic study which aims to find out the role and responsibilities of microfinance in women empowerment and rural development. With a vast section of the world’s marginalized population, India is likely to have a large probable requirement for microfinance. Microfinance offers particularly little credits to poor families to draw them into gainful productive activities. Microfinance is well thought-out as a tool for socio-economic development of the Country. National Bank for Agriculture and Rural Development is an Apex Development Financial Institution in India and has played a crucial role in establishing strong and effective SHGs and Bank linkage scheme focusing on developing credit delivery services for the poor, building a mutual trust and confidence between bankers and the poor, encouraging banking activity both on economy as well as credit and formal mechanism of banking with the poor. The present paper discusses conceptual framework of a microfinance institution in India and its role in empowering the rural women. The accomplishments of various microfinance institutions have been incorporated in a model microfinance institutional mechanism for India. An attempt is also made to propose the ways to augment women empowerment. Micro financial schemes plays imperative role in increasing women’s participation in economic activities and decision making. This study found that microfinance institutions contribute to rapid socio-economic growth by leveraging neglected sectors of the economy by providing them financial assistance and helping them to finance their own projects and increase their income. It is concluded that poor people in rural areas especially in developing countries, are in immense need of credits so microfinance programs through SHGs must make available this credit needs and inspire the poor people to increase their standard of living.