Centre shuts down Rashtriya Mahila Kosh

The government has closed down the Rashtriya Mahila Kosh (RMK), which was formed over 30 years ago, following the recommendation that it has lost relevance as there are substantial alternative credit facilities available for women in rural areas, according to a gazette notification. The RMK was launched in 1993 to provide collateral-free credit to women in the informal sector.

The Women and Child Development Ministry said the report on the rationalisation of government bodies prepared by the Principal Economic Adviser (PrEA) recommended shutting down the RMK as it had lost relevance after financial services were expanded across the rural areas and easy availability of concessional, collateral-free microcredit from banks under various government schemes, the notification released on March 12 said.

Government schemes like the Deendayal Antodaya Yojana-national Rural Livelihood Mission, Deendayal Antodaya Yojana-National Urban Livelihood Mission and PM Mudra Yojna have successfully nurtured lakhs of self-help groups, who can access vast banking networks and cheap credit facilities.


Taking note of the present scenario, all operations and activities of RMK stand closed with effect from December 31, 2023, the notification said.

The ministry said the employees of RMK have been given special voluntary retirement under the Special Voluntary Retirement Scheme (SVRS) and surplus funds of RMK (Corpus and Reserves and Surplus Funds) have been returned to the Consolidated Fund of India (CFI).

The outstanding loan portfolio of RMK has been transferred to the Small Industries Development Bank of India (SIDBI), a financial institution that focuses on developmental aspects line enhanced credit flow to the mandated segments, on an 'as is where is basis' without any monetary consideration, the ministry added.