India has a vast banking network in the world. This note discusses about recent trends in the microfinance sector in India, which places a focus on efficiency, sustainability and need based product diversification. It provides evidence of existing gaps in Indian financial sector in meeting the financial needs of poor people through various studies. This note also gives learning from Indian experience in order to create an inclusive, competitive and vibrant financial system that offers high quality, client-responsive products and services to all sectors of society on a commercial basis.