Micro-finance is the promising alternative that offered funds at the doorstep of the poor. There has been a lot of debate on the nature, concept, regulations and practices of micro-finance in India. But as of today, micro finance has not made any significant contribution in financial inclusion and economic prosperity especially in rural India. To my mind micro-finance is a myth as cooperatives have failed in brining or attaining financial inclusion and economic emancipation. Much has been left on the part of micro-finance institution and their regulation.