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MUMBAI — Reserve Bank Governor Shaktikanta Das on Thursday said the financial sector can help in bridging the gender gap by providing more employment opportunities to women and creating tailored schemes for businesses promoted by them.
Highlighting the importance of inclusive growth, the governor said a truly developed India must ensure that every citizen, regardless of their socio-economic status, has access to financial services and has the required financial literacy.
In his inaugural address at the Annual FIBAC 2024 Conference organised jointly by FICCI and IBA, Das said India's female labour force participation remains lower than the global average.
This gap, he said underscores the urgent need for targeted initiatives such as improving girls’ education, skill development, workplace safety, and addressing societal barriers.
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He said entrepreneurship is a vital component of economic empowerment, yet in India, less than one fifth of micro, small and medium enterprises (MSMEs) are owned by women.
Women entrepreneurs often face significant challenges including limited access to capital, restrictive societal norms, and difficulties in accessing affordable finance, he said.
"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, he said.
Banks could also actively explore onboarding larger numbers of 'bank saathis' or 'sakhis', especially from among SHG members, Das suggested.
Das further said that with a large young population, there is a need to fully tap the potential of MSMEs to drive employment and economic development.
Despite their importance, many MSMEs remain small-sized and unable to scale up effectively due to various challenges, with 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 fundamentals of the economy and augmented the buffers, the governor added.