Mahila Bank: Empowerment or Vote grabbing mechanism?

If the things go well, India will have the first bank solely dedicated to women by this year end. The Cabinet on August 7 cleared a proposal to set up the bank with an initial capital of Rs 1000 crore. The government will seek Parliament's nod for funds for the bank through a supplementary in the ongoing monsoon session. The incumbent UPA government at the Centre has applied a rare combination of good economics and politics by targeting women as consumers and employees of a bank.

Much like the Direct Benefit Transfer and Food Security Ordinance, the Bharatiya Mahila Bank would probably turn out to become a game changer for the Congress-led government in the general elections scheduled next year. The step has covered almost half of the country’s population and its announcement creates a feel-good factor in the country.

The government has decided to launch 6 units of the bank including one each in four metro cities, the fifth one in North East region and the sixth one in Central India. In this development the finance ministry has asked public sector banks to provide 125 officers for deputation to the first woman-focused lender, Bharatiya Mahila Bank. Most of these officers would be taken at one level above in the women’s bank, but their experience in the bank would not count for promotions.

It will change the financial position of the women and a sense of empowerment would be succeeded in them. The standard of living along with quality education and better health facilities could be easily accessible after becoming financially empowered. If implemented properly, this could prove to be a meaningful step forward in the women’s life. The Bhartiya Mahila Bank will not offer any concessional rates to women, though. "It is a commercial bank, which will follow the guidelines stipulated by the Reserve Bank of India," reported an official of ministry. It is being learnt that the idea to empower women in the country and bring banking services at their doorsteps. The bank will take initiatives to open accounts of women not only through branches but by organising camps all across the country.  

Possessing a workforce entirely comprising women, it will be interesting to watch its growth since the early stages. There is no doubt that many women with the likes of ICICI Bank CEO Chanda Kochhar excelled in their fields. The women have shown their utmost calibre in taking sound financial decisions, managing credits.

It would be feasible in making the successful one as to tap the local talent. There are number of girls who are not able to step out of their homes to face the real world. Hiring local manpower is beneficial with respect to ecosystem, economic activities, and credit and thrift habits and can help build a better bank.

It would be interesting to see whether the new initiative does prove beneficial for the common woman, rather than get entangled in petty politics and bureaucratic red-tapism.