Lok Sabha Question No. 2215 (UNSTARRED), answered on 2016-05-06
Subject: Functioning of Rashtriya Mahila Kosh
Ministry: WOMEN AND CHILD DEVELOPMENT
Asked by: PRATHAP SIMHA

## GOVERNMENT OF INDIA

## MINISTRY OF WOMEN AND CHILD DEVELOPMENT

## LOK SABHA UNSTARRED QUESTION 2215

## TO BE ANSWER ON 06.05.2016

## FUNCTIONING OF RASHTRIYA MAHILA KOSH

## 2215 SHRI PRATHAP SIMHA:

Will the Minister of WOMEN AND CHILD DEVELOPMENT be pleased to state:

- a) whether the Government has reviewed the functioning of Rashtriya Mahila Kosh (RMK) recently and if so, the details thereof indicating the deficiencies noticed therein;
- b) whether the Government had held discussions with bankers and other stakeholders to discuss the possibilities  of  strengthening  and  restructuring  RMK  and  plans  to  build  linkages  between  RMK, Bharatiya Mahila Bank and other financial institutions and if so, the details thereof;
- c) whether  the  Government  has  launched  Mahila  E-haat  recently  and  if  so,  the  objectives/goals thereof;
- d) whether any MoU has also been signed with any private online e-commerce company for sale of products and if so, the details thereof;
- e) the number of defaulters under loan schemes of RMK during the last three years along with the efforts made or mechanism available with the Government to recover the loan; and
- f) the further measures taken by the Government to improve the functioning of RMK?

## ANSWER

## MINISTER OF WOMEN AND CHILD DEVELOPMENT (SHRIMATI MANEKA SANJAY GANDH)

- a) Rashtriya Mahila Kosh (RMK) is an autonomous organization under the Ministry of Women & Child Development (MWCD). It is a society registered under the Societies Registration Act 1860 and an apex micro-finance organization. The main objective of setting up of RMK was to provide micro-credit to poor women for various livelihood support and income generating activities at concessional terms in a clientfriendly  procedure  to  bring  about  their  socio-economic  development.  In  fact,  the  quasi-formal  delivery mechanism,  simple  procedure,  in-built  flexibility  and  concessional  rates  of  interest  are  some  of  the hallmarks of the credit packages of the RMK.

RMK has been following the loan guidelines which were framed at the time of its inception. Over the period of time changes in the quantum of loan, interest rates and the loan schemes of RMK have been carried out by Governing Board of RMK. Through these loaning guidelines RMK have made a cumulative sanction  of  more  than  Rs.360.00  crore,  disbursement  of  Rs.302.00  crore  to  more  than  7.35  lacs  poor women beneficiaries through a network of over 1500 NGOs/IMOs.

As a result of review  of  the  functioning  of  RMK during 2014-2015, the following measures  have been taken by the Government to revamp the RMK:

- i)  Simplification  of  Loan  Procedures: With a view to make loaning guidelines of RMK more effective and customer friendly, the lending  guidelines  have been  further revised  and simplified by the 55 th  Governing Board (GB) of RMK held on 17.11.2015.
2. ii) Downward revision in Rate of Interest (RoI): During the past 2 year period, RoI of RMK loans has been revised downward twice. Firstly w.e.f 01.04.2013 maximum RoI chargeable by RMK to NGO was reduced from 8 % to 6 % and by NGOs to end beneficiary from 18% to 14 %. RoI chargeable to end beneficiaries by NGOs have been further reduced to 10 % from 14 % as per 55 th  Governing Board (GB) meeting held on 17.11.2015.
- b) The 52 nd  GB of RMK in its meeting dated 03 rd  December, 2014 decided to continue lending loan to poor women @ 6% p.a. against recommended interest rate of 9 - 10 %.
- c) Yes, Madam. The Mahila E-haat was launched by the Hon'ble Minister of MWCD on 7 th  March, 2016 at New Delhi.

The Vision, Mission and Goal of Mahila E-haat are:

Vision: to empower & strengthen financial inclusion of Women Entrepreneurs in the economy by providing continued sustenance and support to their creativity.

Mission:  to  act  as  a  catalyst  by  providing  a  web  based  marketing  platform  to  the  women entrepreneurs to directly sell to the buyers.

Goal: to support 'Make in India' through digital marketing platform.

- d) No, Madam.
- e) The cumulative net numbers of defaulters under loan schemes of RMK is 454 as on 31.03.2015. In the event of default, necessary legal action under Section 138 of Negotiable Instrumental Act, filling of Civil Suit  and  other  recovery  proceeding  through  appointment  of  Arbitrator  are  taken.  Simultaneously  the defaulting NGOs are blacklisted whereby they are debarred from availing any sort of grants or aid by any Central / State Govt. agency.
- f) The  functioning  of  RMK  is  being  further  strengthened  through  addition  of  Mahila  E-haat  portal, revision of loan guidelines and downward revision of interest rates.

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