The paper is a study of the working of groups (Joint Liability Group, JLG) of poor people and its members (beneficiaries) located in the region of Delhi/NCR. It captures group responses from a set of recipients of microfinance in the region mentioned. With the help of simple statistical inferences, it is observed that there was a change in their social condition as well as income generation. The study was motivated by the lack of research in the area of microfinance and financial inclusion in India, and also to see how effective these schemes are in impacting the lives of the beneficiaries.

Out of around one billion people in India, 26% are poor (National Statistical Sample Organization, 2000). According to a 2005 World Bank estimate, 456 million Indians (41.6% of the total Indian population) now live under the global poverty line of $1.25 per day (Purchasing Power Parity, PPP). Although the Indian economy has grown steadily over the last two decades, its growth has been lopsided when compared to different socioeconomic groups, geographic regions and rural and urban areas. This has resulted in migration of workforce from rural or less-developed to urban areas, further aggravating the disparity. Such movement of people is a sign of lack of appropriate income-generating facilities in their native place. If means can be devised for the same, equitable growth can be attained. Lack of income and limited means is detrimental to the growth of the poor, and until there is a continuous and assured supply of income they will be trapped in a vicious circle.

Financial inclusion and development are interrelated in more ways than one. Its importance is highlighted in many forums. Though the government spends loads of money and regularly comes out with various education and employment schemes like Right to Free Education and National Rural Employment Guarantee Act (NREGA) etc., the Government alone is not capable of providing support;, so other players and partners will have to extend a helping hand. It needs to be strategized how to reach the unreachable. The Government, Banks, Non-Governmental Organizations (NGOs) and other private players are devising ways for the same. To make an initiative sustainable, it has to incorporate the basic task of consistent income generation rather than surviving on aid and charity. Grameen Bank is a live example of this. A simple idea that the poor could use credit to lift themselves out of poverty, led Dr. Yunus1 to create The Grameen Rural Bank in 1983. Since its inception, it has disbursed over $8.96 bn in loans to over eight million borrowers. Its methodologies have become the cornerstone of the microfinance industry.

Business Strategy, Journal, Joint Liability Groups , Delhi/National Capital Region (NCR), National Statistical Sample Organization, The Government, Banks, Non-Governmental Organizations (NGOs) Financial and Economic, Social, education, modernity, health, population control, employable workforce, social entrepreneurs, Environmental. .