Bhartiya Mahila Bank
Bhartiya Mahila Bank commitments and expectations
The Congress led Government is very keen in launching the new Mahila Bank as per the announcement made in the budget speech by Mr. P. Chidambaram, Finance Minister.
The Government is waiting for Planning Commission to grant Rs.1000 crores as working capital for the proposed bank. The Bank is expected to function from 1st November 2013.
The government is in a to set up India’s first women’s bank by November. Speedy action on a Budget announcement is welcome: an expert panel has already prepared a blueprint for the proposed bank. However, it would be naive to assume that the government will garner more votes through such a move.
Credit must be available to any person who qualifies in the credit appraisal process, but tend to be discriminated against when it comes to bank lending. Now, gender is not a good basis for licensing a bank. So, should we have one more bank that will “mostly”, not solely, lend to women and employ “predominantly” women? The simple answer is we need more banks. Yet another bank makes eminent sense, as many people do not have access to formal credit. The RBI should allow more banks and also innovative forms of
It was said that the main aim of the Bank is to reach the doorstep of villages and particularly women self help organisations. The government has done well to delink the licence for the state-owned women’s bank from new private bank licences to be given by the RBI. However, the need is to ensure that the upcoming bank, to be called Bhartiya Mahila Bank, works on sound commercial principles. It should not show any relaxation in sanctioning loans rejected by a general bank on viability grounds. This will lead to loan defaults, making business un-viable.
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