The report is based on a study conducted under the guidance and support from College of Agricultural Banking (CAB), Reserve Bank of India, Pune. The report brings forth perspectives on the impact of regulatory and policy regime on micro finance institutions and its customers. The report incorporates opinions of a range of clients, micro finance institutions and banks who lend to the sector directly and indirectly. The report is based on market research conducted across the states of Assam, Bihar, Karnataka, Madhya Pradesh and Uttar Pradesh. The report recommends that the regulator stipulate higher emphasis on the quality of credit assessment based on cash flow analysis rather than adherence to minimum moratorium period criterion. This practice will eventually enhance the skills of micro finance institutions and lay the path for scaling up in future.