A Review of Digitalization Impacts of Microfinance Institutions in Growth of Indian Economy

Insufficiency suffering the poor with negative, unbearable and uncontrollable conditions, which limited them to exploiting services in the regular banking sector. The need to provide financial services to people in need of better quality of life through the organized sector has created microfinance in India. Microfinance institutions have come a long way in bringing about change, benefiting the poor and the marginalized by providing access to the capital. Also, the digitalisation of microfinance institutions has emerged as a new wave, and these agencies are working tirelessly to advance technology to enhance efficiency and effectiveness. This working paper identifies the evolution of the microfinance revolution in India as a powerful tool in the fight against poverty. If financial institutions fail to provide microfinance, the limit is very low. Question marks on the governance of microfinance institutions. A concerted effort is needed to contribute to the development of the new microfinance industry, while at the same time focusing on trade agreements between boundaries and sustainability. This research paper outlines several aspects in which the government must play its role. This research paper also highlights the development of the microfinance industry, where the key issues are the diversification of access to capital, innovation in distribution, infrastructure and education, and the use of new technologies such as mobiles and smart government within the sole recognition authority of India. The research paper examines the evolution of microfinance and its associated factors and ideological position based on global recognition, a one-off proposal for both Microfinance institutions and clients