India could announce women’s bank next week

Will coincide with Independence Day on August 15.

Prime Minister Manmohan Singh’s Independence Day speech is likely to mention the promise to empower women through a bank meant largely for them.

Bharatiya Mahila Bank will have an initial capital of US$163 million and will provide dedicated financial services to women in general and women self-help groups in particular.

The bank is expected to be launched this November and the finance ministry is also expected to soon appoint its chairperson.

The Union Cabinet will take up the proposal to establish the Bharatiya Mahila Bank in its meeting this week.

A senior government official said the Cabinet note has already been circulated. The Cabinet has also sought exemption from the mandatory waiting period before it tackles the issue. The proposal should be cleared by next week at the latest.

The proposed women’s bank has been cleared by the finance ministry’s Expenditure Finance Committee and has also received mandatory approvals from the Reserve Bank of India.