While microfinance companies have been studied and there is a growing consensus that they exclude the poorest, the impact of government microfinance programmes is relatively less understood. The National Rural Livelihoods Mission, which aims to reduce rural poverty by organising women into self-help groups, building capacity and providing access to microcredit is evaluated through a survey of 2,615 households in five districts of Madhya Pradesh. The focus is on four key questions. Who benefits and who gets left out? What is the pattern of household investment priorities?