A Study on the Role of E-Governance in Micro-Finance Based Institutions in India

Abstract

While the majority of microfinance institutions provide lending, microloans can range in size from Rs. 5000 to Rs. 125,000.
Many banks now provide additional services such as checking and savings accounts, micro-insurance products, and financial
and business education. The ultimate purpose of microfinance is to enable underprivileged individuals to become selfsufficient.
Electronic governance, often known as e-government, is assisting Indian citizens in a unique way. Governments
are now playing a crucial role in communicating their schemes and services to citizens through online channels where users
can find detailed information, thanks to the use of Information and Communication Technology (ICT) at all levels of
government in order to provide services to citizens. Prior to microfinance, governments backed agricultural banks and
enacted legislation forcing commercial banks to use this e-governance method to send a portion of credit to specific
economic sectors. This article attempts to investigate the purposes and prospects of e-governance, as well as its depth. The
study is entirely descriptive in nature, and it is backed up by secondary data gathered from various sources such as online
journals, publications, and newspapers. The goal of this research is to determine the impact of e-governance in microfinance,
assess the role of government in the field of microfinance, and categorise government interventions in microfinance
development. This research attempts to investigate the role of e-governance in disseminating information, schemes, and
supplementary services to Indian villagers, as well as the extent of penetration of government models and their effectiveness.