FinMin to soon seek Cabinet's nod for all-women bank

The Finance Ministry will soon approach the Cabinet for approval to set up India's first all-women bank, entailing Rs 1,000 crore initial investment.

A Cabinet note has been circulated for the all-women bank and the matter is likely to be considered by the Cabinet soon, sources said.

The all-women bank, proposed in the Budget, would be wholly-owned by the government and is expected to start operations from November, 2013 through six branches in different parts of the country.

Finance Minister P Chidambaram had recently said that initially there would be one branch in each major region of the country -- South, West, East, Centre, North and the North-east.

The bank, mostly manned by women, would start with an initial capital of Rs 1,000 crore.

Also, the proposed bank will lend mostly to women and women-run businesses, provide support to women Self Help Groups (SHGs) and their livelihood.

Moreover, it will employ predominately women, which addresses the gender-related issues and empowerment and financial inclusion. However, it will take deposits from both men and women.

Earlier, a committee headed by headed by former Canara Bank Chairman M B N Rao and comprising of bankers and other experts had prepared a blueprint for the all-women bank.