New Delhi, June 2
To make all-women bank a reality by October, the Finance Ministry has approached the Reserve Bank of India for clearance to set up the country’s first such bank.

“The committee set up to prepare the blueprint for an all-women bank has submitted its report to the Finance Minister. We have sought in-principle approval from the RBI for the all-women bank,” Financial Services Secretary Rajiv Takru said.

The first all-women bank owned wholly by the government is expected to start its operations from November 2013 through six branches spread across the country.

Finance Minister P Chidambaram had said the bank would be inaugurated in November.

“We should initially start with at least one branch in each major region - South, West, East, Centre, North and North-East - of the country. This means we should immediately start with six branches,” he had said.

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

The proposed bank will lend mostly to women and women-run businesses, provide support to women self-help groups and their livelihood.

It will further employ predominately women to address gender-related issues, empowerment and financial inclusion. However, it will take deposits from members of both sexes.

Chidambaram had proposed the setting up of country’s first all-women bank while presenting the Budget on February 28. In March, the Finance Minister constituted a committee of bankers and other experts to prepare a blueprint for the all-women bank.

The committee was headed by former Canara Bank chairman MBN Rao. Its members were MD Mallya, former CMD of Bank of Baroda; Jayshree Vyas, managing director of SEWA; Arundhati Bhattacharya, MD & CEO of SBI Caps; Usha Ananthasubramanian, executive director, Punjab National Bank; and K Ramakrishnan, chief executive of Indian Banks' Association. — PTI