IndexIntroduction to Microfinance InstitutionsIntroduction to Bandhan BankAchieving its Vision and MissionRecent Developments Undergone by Bandhan BankTransformation of Bandhan from NGO to BankNeed of Bandhan BanksImportant Role Played by Bandhan BankConclusionIntroduction to Microfinance InstitutionsL The microfinance institution initially had a narrow definition: the provision of microloans to poor entrepreneurs and small businesses that lack access to banking and related services. The two main tools for engaging financial services to such customers or individuals were: (1) relationship-based banking services for individual entrepreneurs and small businesses; (2) group-based models, in which several other entrepreneurs come together to apply for loans and other services as a group. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay Over time, microfinance has emerged as a broader movement whose goal is to create a world in which poor and socially marginalized people and families have access to a wider range of affordable and affordable financial products and services. of high quality, including not only credit but also savings, insurance, payment services and funds transfers. Chandra Shekhar Ghosh founded Bandhan Financial Services Limited (BFSL) in 2001. This microfinance institution is involved in providing loans to small customers, those who have no or no access to formal banking services. In June 2015, the banking regulator gave its final permission. MFIs are the financial institutions that work for the upliftment of the needy and underprivileged section of the society by providing short term loans to start their business or enterprise. They take minimal risk and then finance interested borrowers to help them form, start and operate a business or small-scale venture. Microfinance institutions or MFIs besides providing the financial help also educate people about the current market trends of an economy and help them to compete in the current market and survive. These institutions usually do not accept any collateral or do not ask for any collateral from the borrower before lending the money. This is where these institutions create the difference compared to traditional banking organizations. While banks are quite measurable before lending money to the unemployed, considering them high-risk constituents, MFIs are primarily dedicated to providing all the necessary financial help to this section of the society. These organizations not only take the risk of funding them, but also work with them to ensure that the money offered is used appropriately. These institutions contribute in every way to uplift the weaker sections and make them financially independent. MFIs operate in many shapes and forms in India. Although each of them has a different background and working nature, they all provide financial help to the needy sections of the society in the form of loans and other financial products. The various types of MFIs in India: JLG or Joint Liability Group SHG or Self Help Group The Grameen Bank Model Rural Cooperatives. Microfinance institutions act as a bank and in a sense they are superior because in addition to providing credit they offer other financial services such as savings, insurance and non-financial services such as personal consultancy, they provide guidance and support to start small business businesses, etc. In recent decades it has provided money to communities unnoticed and thus helped get rid of poverty. Bandhan's financial holdings are owned by Bandhan Financial Services Limited (BFSL), thelargest microfinance organization in India. The bank is focused on Eastern India as banking penetration is still weak in the region, but at the same time it wants to expand its loan portfolio by increasing lending funds to eMicro retail businesses and small and medium enterprises. Introduction to Bandhan BankBandhan Bank has become the first microfinance company in India to start operations as a full-fledged commercial bank. Bandhan Bank has become the first microfinance institution to transform into a bank. Bandhan Bank commenced operations after receiving in-principle approval provided by the Reserve Bank of India. Bandhan Bank was initially founded in 2001 by Chandra Shekhar Ghosh as a non-profit microfinance institution with the primary objective of empowering women. After a few years it transformed into a non-banking finance company (NBFC). Bandhan means union and the mission and vision are reflected in its name. The main aim of Bandhan is the social upliftment of women exploited by the society. To achieve the goal, Bandhan is committed to providing microfinance services to poor women living in rural and urban areas across the country. Bandhan has been involved in microfinance service delivery for the last 13 years. Achieving its vision and mission Bandhan takes this opportunity to thank everyone who has been associated with Bandhan and supported them in every possible way. Bandhan Bank was founded with the desire to serve better. Bandhan Bank started with 501 branches, 50 ATMs and 2,022 Home Service Centers (DSCs) from day one. Currently, Bandhan Bank has 3,550 touchpoints across India consisting of 832 bank branches, 2,437 Home Service Centers (DSCs) and 281 ATMs, serving over 10 million customers. The bank has mobilized deposits more than Rs. 22,000 crore and its outstanding loan portfolio is Rs. 22,900 crores. Bandhan Bank has a team of nearly 23,750 employees in service. The Kolkata-based bank has two divisions: general banking and micro banking, which offer a suite of retail financial solutions, including a variety of savings and loan products. Currently, savings bank account interest rate is 6% for balance above Rs. 1 lakh and 4.25% for the balance up to Rs. 1 lakh. The recent developments experienced by Bandhan Bank Bandhan Bank has changed the deposit rates downwards by up to 50 points. Bandhan Bank is planning to hire more people to meet the growing need for human resources in branches and home service centers. Bandhan Bank will focus more on retail lending than corporate lending. Bandhan Bank to expand the level by adding 1000 chapters. Bandhan Bank successfully achieves onboarding of five lakh customers since its inception. Bandhan's Transformation from NGO to Bank Bandhan initially started as an NGO and then got its position as an NBFC. Additionally, he went on to obtain a banking license. But why does he need a banking license while carrying out the primary banking activity i.e. lending? Although NBFCs perform similar functions as banks, there are few differences. One of the differences is that an NBFC is not allowed to accept demand deposits (DD), it is not part of the payment system and settlement system and also an NBFC cannot issue checks drawn on itself. In recent years, the Indian banking sector has shown a high level of elasticity in the face of high domestic inflation. With the deregulation of savings bank rates and the bleak global economy, banks are focusing on alternative sources of revenue, such as income from.