All-women bank will be made into reality by October as the Finance Ministry has approached the Reserve Bank of India for clearance to set up the first all women bank.
"The committee set up to prepare the blueprint for all-women bank has submitted its report to the Finance Minister. We have sought in-principle approval from RBI for all women bank," Financial Services Secretary Mr. Rajiv Takru said.
The first such all-women bank wholly-owned by Government will start operations from November 2013 as expected through six branches spread across the country.
Finance Minister, Mr. P Chidambaram had said the bank 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," FinMin said.
The all women bank would start with an initial capital of Rs 1,000 crore.
The proposed bank will lend mostly to women and women-run businesses and will provide support to women Self Help Groups (SHGs) and their livelihood.
Moreover, it will employ only women which address the gender-related issues and empowerment and financial inclusion. However, it will take deposits from men and women both.
Mr. Chidambaram proposed setting up of the country's first all-women bank while presenting the Budget on February 28.