Today, every organization in the world assumes that without the implementation of IT, survival is very difficult. This article discuses the developments and scenarios in the field of infotech application in microfinance.

Information Technology (IT) is a buzzword for sophisticated and faster communication. Today IT has grown by leaps and bounds to network the whole world; its contribution to the field of trade and commerce has to be measured on a greater scale. The concept of global village would not have been a reality without Information Technology. E-Commerce and E-Business concepts have emerged due to the support of IT. All the countries across the globe are using this user-friendly tool for their communication system and developing countries are no exception to this. Countries like India and other SAARC countries too have access to this advanced communication tool. But the basic question needs to be addressed here is, can IT contribute to the development of rural and small sector business? No doubt there is a preconceived notion that IT can be used more in urban areas due to the availability of resources and required skills. To some extent it is true that IT requires little amount of computer skills for implementation. But it is not too difficult to educate the rural folks and equip them to use IT for their business communication system, thereby making them use IT and IT-enabled systems for their business purposes. They can improve their quality of the business through communication system and market their product across the world; this may create a platform for poverty alleviation.

Today most of the developing countries' national agenda is poverty alleviation by supporting rural folks through developing their skills to make them an entrepreneur; however, this can happen only by providing financial support to start their own cottage industries in their respective areas. World Bank grants or government subsidies may provide temporary solution to the problem and it may not succeed in removing the grassroot level poverty. This can happen only by giving consistent financial support and advice to rural folks. To solve this problem, the most successful tool that has emerged is known as "Microfinance".

Professional Banker Magazine, Information Technology, Microfinance, E-Commerce, E-Business, Small Sector Business, Poverty Alleviation, Business Communication System, Entrepreneurship Skills, Information Technology and Communication, International Finance Corporation, Financial Services, Wireless Communication Devices.