Bishnu Prasad Bhandari
Nepal Rastra Bank has played pivotal role in building up the institutional network and mechanism for easy and smooth availability of the micro-finance for the income generating activities of the poor and the deprived people. This has resulted in the emergence of many micro-finance institutions, which have been participating in the micro-financing operation using it as one of the effective financial tools for poverty reduction. However, these micro-finance institutions have not been able to provide services to all the targeted people. There is a wide scope and tremendous opportunity for these institutions to involve in micro financing right through various rural financing program. The challenge is first reaching out to the majority of the poor people with micro finance and secondly making them viable, sustainable, and profitable. Nepal is moving towards microfinance development and faces some problems which are hurdle in development of microfinance. These highlighted problems in literature should be sort out by implementing the positive recommendations.