Lok Sabha Question No. 4660 (UNSTARRED), answered on 2019-07-22
Subject: Bharatiya Mahila Banks
Ministry: FINANCE
Asked by: A. Ganeshamurthi

## GOVERNMENT  OF INDIA MINISTRY  OF FINANCE DEPARTMENT  OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED QUESTION NO. 4660

TO BE ANSWERED  ON THE 22 ND  JULY  2019/ ASHADHA  31, 1941 (SAKA)

## 4660. SHRI A. GANESHAMURTHI:

## Bharatiya  Mahila Banks

Will  the Minister  of FINANCE  be pleased to state:

- (a) the purpose  and motive  of opening  of Bharatiya  Mahila  Banks (BMBs) and the total  number  of BMBs functioning  in the country  as on date,  State-wise  including  in Tamil Nadu;
- (b) whether  the objectives  of opening  BMBs are being  fulfilled;
- (c) if so, the details  thereof  and if not,  the reasons  therefor;  and
- (d) the steps being  taken  or proposed  to be taken  by  the Government  to fulfill  all  the objectives  of BMBs?

## ANSWER

## THE MINISTER  OF STATE  FOR  FINANCE (SHRI ANURAG  SINGH THAKUR)

- (a) to (c): Bhartiya  Mahila  Bank (BMB) was set up with  the objective  of providing  greater  access of financial services to women.  With  a view  to achieve  this objective  by  serving  women  clientele  widely  through  affordable credit   more   quickly, without   waiting   for  branch   expansion   by   BMB,  benefiting   from   the  extensive   branch network  and lower  cost of credit  of the State Bank of India (SBI), a decision  was taken  to merge  BMB with SBI. Accordingly, BMB was merged with  SBI with  effect from 1.4.2017.  Thus,  the objectives  of opening  BMB are now  being  fulfilled  through  SBI.
- (d): Several  other  steps have also been taken  by  the Government  for meeting  the objective  behind  setting  up of BMB, viz. , providing  greater  access of financial  services  to women.  These include:
- (i) Pradhan  Mantri  Jan Dhan Yojana  has enabled  opening  of bank  accounts  for millions  of previously unbanked  women  customers  (about  19.23 crore  accounts  in rural  and urban  centres  have been set up under the scheme, as of 10.7.2019)   and  allowing   women   users  to  receive   government   subsidies   as Direct  Benefit  Transfer  and to access remittances,  credit  and insurance  products.
- (ii) As  per  data  from  status  of  micro-finance,   Self  Help   Group   (SHG)-Bank   Linked   Programme   has linked   85.31  lakh   women's   self-help  groups   (SHGs),   having   cumulative   saving   deposit   of  Rs. 20,473.55  crore,  to the formal  banking  system,  out of which  44.61 lakh  women's  SHGs are creditlinked  having  outstanding  loan  of Rs 79231.98 crore,  as on 31.3.2019.
- (iii) Pradhan   Mantri   Mudra   Yojana,   under which   69.77%  of  loans  have  been  extended   to  women borrowers,   with   12.74  crore   loans   extended   to  women   entrepreneurs till   31.3.2019.    To encourage further   coverage   of  women   borrowers,   the  Micro   Units   Development   and  Refinance   Agency   Ltd. (MUDRA)  extends a rebate  of 0.25% on its refinance  interest  rate.
- (iv) Stand Up India Scheme to facilitate  bank  loans of amount  ranging  between  Rs. 10 lakh  and Rs. 1 crore   to  women   borrowers   for  setting   up  a  Greenfield   enterprise   in  the  trading,   services   or manufacturing  sectors.
- (v) Public  Sector  Banks are operating  branches  managed  by  'women  only',  which  numbered  661 as on 20.7.2018.