RBI's Innovative Solution Revolutionizes Banking for Women Self-Help Groups

Women self-help groups (SHGs) comprising approximately 10 crore members nationwide have faced challenges in opening bank accounts due to lengthy procedures and extensive paperwork. However, a new initiative from the Reserve Bank Innovation Hub (RBIH) in collaboration with Canara Bank promises to transform this process.

Through this innovative solution, SHG bank accounts can now be opened in just 15 minutes, significantly reducing the time and effort previously required. Additionally, the turnaround time for loans to SHG members has been reduced to a mere 24 hours, down from 3-4 weeks.

Rajesh Bansal, CEO of RBIH, shared insights in an exclusive interview with ETBFSI. He highlighted how digital innovation for SHGs is reshaping the banking landscape, aiming to digitize transactions worth Rs 40,000 crore and establish credit histories for 10 crore women involved in the National Rural Livelihoods Mission (NRLM).

Bansal also emphasized that leading banks will leverage the RBIH initiative to better serve SHG women members. Notably, RBIH is exploring frictionless credit mechanisms and addressing fraud in the banking sector through ongoing projects.

Furthermore, the RBIH is dedicated to supporting nano-entrepreneurs, especially women, by leveraging UPI data insights to facilitate micro-loans. Collaborations with NBFCs and FinTechs are underway to extend microcredit to nano-preneurs and gig workers.

Intrigued by these developments? Watch the interview to discover how SHG women can easily open group bank accounts and secure loans. Gain insights into RBIH’s collaboration with FinTechs and explore its ambitious pipeline for the next two years, aimed at further empowering women entrepreneurs and streamlining financial inclusion initiatives. This initiative marks a significant step towards revolutionizing banking accessibility and efficiency for millions of women across India.