Governor of the Reserve Bank of India (RBI) Shaktikanta Das stated on Thursday that the financial industry can close the gender gap by giving women greater job chances and developing customized programs for firms that they support. The governor emphasized the need for inclusive growth and stated that all Indian citizens, regardless of socioeconomic background, must have access to financial services and the necessary financial literacy in order for India to be considered really developed.
In his opening remarks, Das said that India’s female labor force participation rate is still below the world average at the Annual FIBAC 2024 Conference, which is being jointly organized by FICCI and IBA.
According to him, this difference highlights the critical need for focused programs like raising the standard of education for girls, fostering their skill development, promoting workplace safety, and removing social barriers.
Despite the fact that less than 25% of micro, small, and medium-sized firms (MSMEs) in India are owned by women, he claimed that business is an essential part of economic empowerment.
According to him, women entrepreneurs frequently encounter many obstacles, such as restricted access to cash, constrictive social standards, and trouble obtaining inexpensive financing.
“The financial sector has a crucial role to play in bridging this gender gap by implementing supportive policies, creating tailored financial products, and leveraging fintech innovations to offer better access to finance,” Das said.
This can be pursued on two fronts: one, by providing higher employment opportunities to women in financial institutions; and two, by supporting women entrepreneurs through government-sponsored schemes as well as banks’ own schemes tailored to suit businesses promoted by women.
Das recommended that banks aggressively look into onboarding more “bank saathis” or “sakhis,” particularly from among SHG members.
Das went on to say that because of the country’s sizable youth population, it is imperative to fully utilize MSMEs’ potential to spur economic growth and employment.
Despite their significance, a lot of MSMEs are still tiny businesses that struggle to grow due to a variety of issues, including access to affordable finance being one of the barriers.
“Banks and financial institutions may develop tailored financial products and services that cater specifically to the needs of MSMEs.
“This includes offering flexible credit options, improving access to working capital, and providing financial support that accommodates the unique cash flow cycles and growth stages of MSMEs,” the governor said.
Such measures can propel MSMEs to expand, enhance their productivity, and contribute more significantly to job creation, Das said.
He also said the Indian economy is forging ahead with macroeconomic and financial stability and a favourable growth-inflation balance.
The policy mix pursued in recent years has strengthened the underlying foundation of the economy and augmented the buffers, the governor added.
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