Being based in FSG’s newest “outpost” in Mumbai, India, has afforded me opportunities to learn first-hand about issues that we otherwise only read about in the newspapers. One such issue of current interest is the controversy around microfinance that recently reached the tipping point in India. The government of the state of Andhra Pradesh passed an ordinance to check malpractice in the industry, especially around coercing borrowers to repay loans – and this has close to brought the microfinance industry to its knees. Repayment rates have dropped precipitously and large banks that provided capital to MFIs have all but frozen credit. Most importantly, the controversy has brought into sharp focus the viability of microfinance as a vehicle to alleviate poverty.