It was established in 1999 in a law passed by the national parliament of Bangladesh with the goal of eradicating poverty.

It is a statutory, non-profit organization committed to promoting the economic and social advancement of society's poorest members.

These early public welfare programs were the first to be transformed into an autonomous permanent organization called the Rural Poverty Alleviation Foundation (RPAF).

The micro-finance movement has shown that when financial services are available, a rich market economy can exist among the poor.

[6] Allegations of corruption dogged the foundation's distribution of small loans.