New bank will help women across India get loans for small businesses, reduce financial dependence on men
NEW DELHI (Thomson Reuters Foundation) - India's first women-only bank, aimed at providing women entrepreneurs with quick access to credit for their businesses, will begin operations in November, the Indian Express reported on Wednesday.
Finance Minister P. Chidambaram said in his budget speech in February that the government had pledged an initial investment of 10 billion rupees ($186 million) to help the bank take off.
Six branches of the new bank will open in major cities by November, and the aim is to expand its network to 300 branches over the next four to five years, the Indian Express said.
"The expert committee that was set up to finalise the plan for the bank has submitted its report. The finance ministry is studying it right now, but the idea is to fast track everything and launch the bank by November this year," a senior government official was quoted as saying.
The report said the bank would lend only to businesses and self help groups run by women, but would employ male as well as female staff.
Experts say millions of women lack access to finance across India - partly because of illiteracy, remote locations and lack of documentation, but also because men still often control family budgets.
Women who wish to start small businesses often do not have the financial expertise or face discrimination at local banks when they try to get loans and other services.
Some women’s rights activists have criticised the initiative as "tokenism", saying the investment provided is too small to make much of a difference.
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