The union cabinet on Thursday approved a proposal to set up a state-owned all-women’s bank with an initial corpus of Rs 1,000 crore, paving the way for setting up a financial institution dedicated to women in general, and women Self-Help Groups (SHGs) in particular.
The proposed bank is likely to begin operations by November this year.
The proposal to set up the Bharatiya Mahila Bank was first announced by finance minister P Chidambaram's in this year’s budget speech in February.
According to sources, the government expects the bank to turn profitable by 2019. It plans to set to open 100 branches within that period.
Minister of state for finance Namo Narain Meena had told the Rajya Sabha on Wednesday that the government is planning to seek Parliament's nod for allocation of funds for setting up the bank.
Government has finalised the proposal to start the Bharatiya Mahila Bank Limited with 6 branches, one each in North, South, East, West, Central and North Eastern parts of India, sources said.
The initial cadre of about 125 officers of the new women-focussed bank will be selected on deputation from other public sector banks, sources said.
The cabinet also deferred a decision on 11.36 % stake sale plan in hydro power producer NHPC.
Cabinet clears social media department
The Cabinet on Thursday approved setting up of a social media wing, a brainchild of information and broadcasting minister Manish Tewari, to ramp up the government’s online presence.
This would enable the government to have a specialised department to take its message to Youtube, Facebook, Twitter and other social media sites. Tewari said the new media wing would be set up entirely through the ministry's resources.
He said the research reference and training division of the ministry would be restructured through an executive order and young officers of the ministry would be deputed in the new wing.