Finance Minister P Chidambaram has set up a committee to prepare a blueprint for the all-women's bank he had proposed in his Union Budget for the financial year 2013-14, a government release stated. The committee will submit its recommendations by April 30. The new bank will have to apply for a banking licence.
The bank is expected to start functioning from November 2013, the release stated, adding that M.B.N. Rao, a former chairman cum managing director of Canara Bank, has been appointed chairperson of the committee.
Mr Chidambaram had proposed a Rs 1,000-crore initial capital for the bank, which will employ predominately women and will support businesses run by women.
"I propose to set up India's first women bank in the public sector. I shall provide Rs 1,000 crore as initial capital," Mr Chidambaram had said. The announcement pleased parliamentarians, but not everyone was impressed.
"It's the worst idea I have seen anywhere, and in any Budget. Why not establish an Islamic bank, SC Bank, ST Bank?" asked Dr Surjit Bhalla, noted economist.
However, Chanda Kochhar, who heads ICICI Bank, disagreed. "Most of the banks in India are run by women, but the proposed bank is for women. The focus seems to be to fund women entrepreneurs and give them encouragement. I don't see anything wrong in that," she said.
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