The Aryavarth Express
Agency(New Delhi): The central government has officially discontinued the Rashtriya Mahila Kosh (RMK), an institution established more than 30 years ago, as announced in a recent gazette notification. The decision was based on a recommendation highlighting the organization’s diminished significance, given the widespread availability of alternative credit sources for women in rural settings. Introduced in 1993, the RMK’s objective was to extend unsecured loans to women engaged in the informal sector.
According to a statement from the Ministry of Women and Child Development, the closure follows an evaluation report by the Principal Economic Adviser on streamlining government agencies. This report suggested the RMK’s closure due to the broadened financial inclusion and accessibility of concessional, unsecured microcredit through banking channels under numerous government initiatives. The gazette notification, issued on March 12, underscored that government initiatives such as the Deendayal Antodaya Yojana-National Rural Livelihood Mission, Deendayal Antodaya Yojana-National Urban Livelihood Mission, and PM Mudra Yojna have significantly contributed to the establishment of thousands of self-help groups. These groups now have access to expansive banking networks and affordable credit options.
As per the notification, the RMK ceased all operations as of December 31, 2023. The Ministry also detailed the measures taken regarding RMK’s employees and financial resources. Employees were offered a special voluntary retirement package under the Special Voluntary Retirement Scheme (SVRS), and the RMK’s remaining funds, including the Corpus and Reserves and Surplus Funds, were redirected back to the Consolidated Fund of India (CFI). Additionally, the ministry transferred the RMK’s existing loan portfolio to the Small Industries Development Bank of India (SIDBI) on an ‘as is where is’ basis, with no financial exchange, to ensure the continuation of its developmental objectives and enhance credit flow to the target segments.
