Rashtriya Mahila Kosh to be discontinued

• The Government had set up Rashtriya Mahila Kosh (RMK). It was established in 1993 as a national-level autonomous body for socio-economic empowerment of women, especially those in the rural and unorganized sector, by providing them concessional, collateral free micro-credit.
• The operating model followed by RMK has been of extending loans to Intermediary Micro-Finance Organizations (IMOs) which further on lend for entrepreneurial activities of women.
• However, as per recommendations in the report on ‘Rationalisation of Government Bodies’, prepared by the Principal Economic Adviser to the Government of India in November 2020, the Government has decided to close down RMK as it has lost its relevance and utility in the present scenario with substantial alternative credit facilities becoming available to women through various government initiatives and efforts such as Jan Dhan Yojana, PM Mudra Yojana etc and also to avoid duplicity of efforts.

The detailed objectives for setting up the Rashtriya Mahila Kosh (RMK) have been

• To promote or undertake activities for the promotion of or to provide credit as an instrument of socio-economic change and development through the provision of a package of financial and social development services for the development of women.
• To promote and support schemes for the improvement of facilities for credit for women :

1. for the sustenance of their existing employment,
2. for generation of further employment,
3. for asset creation,
4. for asset redemption and
5. for tiding over consumption, social and contingent needs;

• To demonstrate and replicate participatory approaches in the organization of women’s groups for effective utilization of credit resources leading to self-reliance;
• To promote and support experiments in the voluntary and formal sector using innovative methodologies to reach poor women with credit and other social services;
• To sensitize existing government delivery mechanisms and increase the visibility of poor women as a vital clientele with the conventional institutions;
• To promote research, study, documentation and analysis, including provision of fellowships and scholarships, of credit and its management and of successful experiences at various levels in order to promote replication and dissemination of successful credit extension and management methodologies;
• To promote the federation and networking of women’s organisations for shaping & exchange of experience and information and to develop skills in response management & social mobilization;
• To promote and support the expansion of entrepreneurship skills among women;
• To cooperate with and secure the cooperation of the Central Government, State Governments and Union Territory Administration, credit institutions, industrial and commercial organisations and non-government, voluntary and other organisations and bodies in promoting the objects of the Kosh;
• To accept subscriptions, grants, contributions, donations, loans, guarantees, gifts, bequests etc. on such terms and obligations not inconsistent with the aims and objects of the Kosh; and
• To do all such lawful acts and things as may be necessary or conductive for furthering the objects of the Kosh.
• There shall be no discrimination on the ground of religion, community, caste or class, creed or race in carrying out the aims and objects of the Kosh.