Rameez Makhdoomi
Women are the most vulnerable section of society and in India they are oppressed in much abject manner. Financial Independence for women could go a long way in this country to safeguard the interests of women and empower them. Just 26% of women in India have an account with a formal financial institution, compared with 46% of men. That means an account in either a bank, a credit union, a co-operative, post office or a microfinance institution, according to a recent study by the World Bank.
With more and more women going to work in India – and a larger number of them in the informal economy – a bank for women, say its supporters, helps empower and provide financial security. In a right step in this direction, India’s first all-women bank will start operations from November 2013 through six branches spread across the length and breadth of the country.
“It will be inaugurated in November. Initially we should start with at least one branch in each major region of this country, South, West, East, Centre, North and the North-east. So that will mean immediately we should start with six branches”, said the Finance Minister. Among many plans major stress was put on bringing up PSU bank exclusively for women. The ball has already started rolling as the finance ministry has identified Usha Ananthasubramanian, Executive Director of Punjab National Bank, to be the next executive of Bhartiya Mahila Bank, which will launch its operations from November with six branches.
While the issue has been a burning issue in most of the debates there are some pressing reasons why we in actual paradigm require women banks. The main reason behind starting banks especially meant for women is to provide financial help and security to women across the country.
Practically it is said that, most of the Indian women give their earnings to their husbands. As women are considered as a better money saver than men, having a bank account will definitely be a great help. The other important reason behind this is that these will be in pragmatic sense Banks of the Women for the women and by the Women. A need was felt wherein we create at least few banks that exclusively serve women. The government of India has understood the necessity and the need for women banks in India. The specialty of these women banks are that, the employees who work in these banks are also women and women-run businesses and also employs predominantly women. The motto, behind the 2013 budget session is to speak out the gender-related aspects of empowerment and financial inclusion. Pertinently, on the other hand it was important to come out with women bank different branches across the country. These women specific banks are hoped to provide different schemes that will empower women and encourage higher education for girl child by providing education loans with lesser interest rates.
As these banks will be managed by women professionals, it will increase the employment opportunities for women various departments like finance, accounts, operations, information technology and human resources. Women banking will also aid in women safety measures. In fact, Budget 2013 had given a lot of importance on the safety of women in India. The women safety measures plan was brought under “Nirbhaya Fund” a victim of Delhi gang rape.
On the operational side of it, the initial cadre of about 125 officers for these new women-focused bank has been identified and will be selected on deputation from other public sector banks The government has also decided to provide initial capital of Rs 1,000 crore for this women bank has been so decided that the bank is not capital constrained for expansion of normal business, he had said. The move to set up Bhartiya Mahila Bank is aimed at encouraging women in general and women self-help groups (SHGs) in particular.
Of the 250-odd banks operating in India, 21 are public sector banks, 22 private sector, 36 foreign banks and the remaining include cooperative and regional rural banks. The number of women leaders as of now is just a handful, but the story has only begun, and the concept of all inclusive women banking would take this to new levels.
Women Banking in India “A step towards brighter tomorrow”
