Microfinance has evolved as a potent driver of financial inclusion in Bangladesh with much positive impact on poverty alleviation and other social development indicators. Despite massive success in terms of outreach, employment generation and empowerment of millions of poor, a large number of low-income poor people have remained excluded from the network of the financial services. The article examines achievements of microfinance industry in Bangladesh, its present challenges and prescribes policy measures to bring more unbanked poor people in the fold of financial services.