Setting UP of Rashtriya Mahila Kosh

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 onlend 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 governmental initiatives and efforts such as Jan Dhan Yojana, PM Mudra Yojana etc and also to avoid duplicacy of efforts.

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

i. 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.

ii To promote and support schemes for improvement of facilities for credit for women :

1. for 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;

iii. To demonstrate and replicate participatory approaches in the organization of women’s groups for effective utilization of credit resources leading to self-reliance;

iv. To promote and support experiments in the voluntary and formal sector using innovative methodologies to reach poor women with credit and other social services;

v. To sensitize existing government delivery mechanisms and increase the visibility of poor women as a vital clientele with the conventional institutions;

vi. 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;

vii. 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;

viii. To promote and support the expansion of entrepreneurship skills among women;

ix. 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;

x. 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

xi. To do all such lawful acts and things as may be necessary or conductive for furthering the objects of the Kosh.

xii. 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.

xiii. All the incomes, earnings, movable, immovable properties of the Kosh shall be solely utilised and applied towards the promotion of its aims and objects only as set forth in the Memorandum of Association and no part of income and property of the Kosh shall be paid or transferred directly or indirectly by way of dividends, bonus, profits or in any manner whatsoever to a present or past Member of the Kosh or to any person claiming through any one or more of the present or past members. No member of the Kosh shall have any personal claim on any movable or immovable properties of the Kosh or make any profits, whatsoever by virtue of his membership. The accounts of the Kosh shall be audited and balanced each year. Provided, however, nothing herein contained shall prevent the payment, in good faith, of remuneration to any member or other person in return for any services rendered to the Kosh or for travelling allowances, halting or other similar charges.

Further, the details of the loan schemes being implemented in the States/UTs under RMK are as under:

1. Loan promotion scheme
2. Main Loan Scheme
3. Gold Credit Scheme
4. Housing Loan Scheme
5. Working Capital Term Loan

RMK extends concessional micro-finance loans to poor women through IMOs for livelihood activities, housing, micro-enterprises and family needs to bring about socio-economic upliftment of the women.

RMK had revised its loan guidelines in the financial Year 2017-2018. The women benefitted under the scheme against revised loan guidelines from FY 2017-18 onwards is at Annexure-I.

RMK undertook advertisement drive for inviting proposals from Intermediary Micro-financing Organisations across the country in 2018. Further, RMK made Video Spots and Radio Jingles through NFDC and disseminating the same through various social media channels for popularising its Loan schemes.

This information was given by the Union Minister for Women and Child Development, Smt. Smriti Zubin Irani, in a written reply in the Rajya Sabha today.