The microfinance industry is going through various challenges after the spread of Covid-19 at the global level. India is a developing country that is facing on one side the severity of the pandemic, and on the other side, being a global leader in microfinance, it is trying to handle microfinancing operations effectively. This paper compiles the information gathered by the researchers from numerous sources in order to examine the effects of the pandemic on the liquidity and profitability of microfinance organizations. The findings demonstrate that the pandemic had an impact on India's microfinance business, but not so severe. It looked to have weathered the pandemic waves reasonably well, despite the fact that it had to make significant modifications to its internal operations and also make some tough decisions, such as reducing lending activity even while the borrowers' demand was strong. Microfinance institutions were created for a specific purpose, and they are currently unable to provide financial assistance to their consumers. There is a need for Govt. intervention, and some steps are already taken by the government by extending the moratorium period for clients. The bankers to these institutions are not extending the same to the intended beneficiaries.

Government, Interventions, Financial Operations, Moratorium, Pandemic, Rural