Yojana and

Kurukshetra
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 TOPICS
Yojana Magazine
Kurukshetra Magazine
 Banking Sector Reforms: Ensuring Regulation Introduction
§ For both firms and households, the banking system is one of the most important sources
of credit in India.
§ The size, resilience and level of capitalization of banks are critical for the smooth
functioning of financial markets.
§ Key challenges to the banking system include low financial depth, a high share of NPAs
and a high concentration of Public sector banks (PSBs).
§ These issues constrain international credit and banks’ ability to meet international capital
requirements.
§ We need to focus on three areas to stimulate the banking sector:
§ Improving governance of banks,
§ Enhancing competition in the sector,
§ Developing corporate bond markets to relieve pressure from banks as lending
sources.
The Current Situation
Ø PSBs are the biggest contributors to the large and rising stock of NPAs. Gross NPAs in PSBs
rose from Rs. 2.78 lakh crore in March 2015 to Rs.7.33 lakh crore in June 2017.
Ø Even private banks have been plagued by a high share of NPAs.
Ø The decline in banks’ profits is largely due to higher growth in risk provisions, loan write-
offs and decline in net interest income.
Ø The stress on the banking sector has translated into a slowdown in industrial credit. They
also limit banks’ ability to meet international capital requirements under Basel III.
Ø The Indradhanush plan will not only help PSBs meet their minimum capital requirements
but they will also help banks clean up their balance sheets and cover bad loans. It also
includes wider banking reforms needed to strengthen institutional governance.
Ø The Insolvency and Bankruptcy Code (IBC) provides a channel for addressing NPAs. It
requires banks and promoters to agree on a resolution plan within 270 days or face asset
liquidation.
Global Competition

Ø India’s banks lag behind global banks in terms of financial depth or the size of banks and markets relative to
economic output.
Ø India has low levels of private credit to GDP and credit to deposit ratio, relative to other emerging
economies.
Ø Since 1991, only 14 licences have been granted for universal banks. In contrast, in the US, over 130 new
banks were charted annually on average between 1976 and 2009. Looking Ahead
Ø India should strive to have a more robust and well capitalised banking system, with enhanced capacity to
extend credit and productive allocation of resources.
Ø To build a robust banking system, recapitalisation will have to be complemented by other measures like
corporate governance reforms, lower entry barriers, improved financial supervision, development of a
dynamic corporate debt market and efficient debt recovery mechanisms.
Ø Global examples highlight the importance of undertaking banking sector reforms in tackling NPAs.
§ In China, besides recapitalisation, banking sector reforms focused on strengthening financial regulation
and supervision, improving corporate governance and enhancing transparency.
§ South Korea created a Financial Supervisory Service (FSS) to ensure supervision in their banks following
the East Asian Financial Crisis of the late 1990s.
Ø Greater accountability can ensure that banks’ lending practices are in line with the productive allocation of
credit.
Ø Corporate bond markets need to complement banks as important sources of finance.
Ø India should continue to encourage the entry of private and foreign players to foster greater competition
and innovation in the sector.
Ø The new policy of “on-tap” licensing of banks is a positive step in this direction. The entry requirements
could be relaxed further to reduce barriers to entry.
 Managing Non-Performing Assets: A Paradigm Shift
Introduction
§ Financial intermediation by banks is an engine of growth because they cause money to be circulated in the
economy by seeking deposits from those who have surplus and lend for investment activity.
§ One major reason for muted credit growth is fast accretion of NPAs on banks’ balance sheets. Gross NPAs of
banks in India as on September 2017 are Rs 8.40 lakh crore. The rise of NPAs had its genesis in rapid credit
growth of banks during the preceding years say from 2008 onwards.
§ Reasons the current state of affairs exuberance in increasing balance sheet size by lending to borrowers
unworthy of such loans on account of their past credit history.
§ Borrowing for creating excess capacities in anticipation of demand without factoring in the global capacities.
§ Project completion was delayed for various reasons.
§ Recovery of receivables was poor.
§ The concerned corporate was not able to raise capital through the issue of equity or other debt instruments
from capital markets and used borrowed money as equity lending to double leveraging.
§ Business failure because of over optimistic projections.
§ Borrowed funds were not used for the purpose for which they were lent.
§ Wilful defaults, siphoning of funds, misappropriation etc.
§ Lack of skill on the part of the banks to monitor end use of funds and diversion through web of shell
companies etc.
Way Forward
Ø The time is right to make wilful default a serious crime as is the case in some countries. It is going to have
impact on the behaviour of those who borrow money from banks and not pay it.
Ø Banks need to do forensic audit for ascertaining the end use of funds. They should use big data analytics
and other IT based solutions for doing proper due diligence about the borrower and his businesses like
fintech companies are doing.
Ø Artificial intelligence (AI) can be leveraged to predict default at least one year in advance with confidence
of 80%.
Ø Banks have to fine tune their HR policies to train the young workforce which at present lacks experience,
and upgrade their skills.
Ø To expedite recovery we need more National Company Law Tribunals (NCLTs) and Debt Recovery Tribunals
(DRTs) as present benches are woefully short. Strength of judges can be increased to cope up with the
workload.
Facilitating Financial Inclusion Introduction
q Financial inclusion is a process of ensuring access to appropriate financial products and services needed by
all sections of the society in general and vulnerable groups in particular at an affordable cost, in a fair and
transparent manner.
q The objective of financial inclusion is to transform the lives of vulnerable people by providing them access to
banking finance and enabling them to generate stable income.

Background
q India is a pioneer in financial inclusion. The Cooperative Credit Societies Act, 1904 gave an impetus to the
cooperative movement in India.
q The financial inclusion exercises explicitly started with nationalisation of State Bank of India in 1955.
q The priority sector lending became important by 1974 which implied directing lending to unbanked areas.
q The RBI and NABARD have also been making concerted efforts in extending banking across the country
under which the schemes of microfinance initiatives and business correspondents (BCs) were launched.
q Other initiatives included establishing Regional Rural banks, adopting service area approach and SHG-bank
linkage programme.
q In recent years RBI has simplified norms on KYC requirements and introduced no-frills account.
Expansion of Banking and Role of Money Lender
Ø The efforts made by the government and the RBI resulted in branch expansion, but the money lender
continued to play an important role.
Ø Money lenders continued to play an important role in rural areas even after nationalisation because bank
branches were few and located far away. Government Initiatives
Ø PMJDY which envisages universal access to banking facilities consolidates government’s effort to increase
number of households availing banking services.
Ø As of December 2017, a total of 30.7 crore accounts had been opened under the scheme. The number of
RuPay cards have also increased to 23.1 crore.
Ø The size of bank network increased rapidly in rural areas though growth rate was higher in urban and
metropolitan areas. The public sector banks continue to play an important role in extending banking
services to unbanked areas but share of private banks is increasing significantly in the last decade.
Ø In extending credit to agriculture sector, commercial banks have been more successful than RRBs or
cooperative banks.
Ø Setting up Micro Unit Development Refinance Agency (MUDRA) for providing micro credits.
Ø Social security schemes like Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha
Bima Yojana (PMSBY) and Atal Pension Yojana (APY).
Innovation in Extending Credit
Ø Commercial banks began exploring alternatives like mobile vans, banking kiosks and Business Correspondents (BCs) to
extend banking services to unbanked population.
Ø Banking with BCs provides convenience of banking and also offer substantial savings on transacting banking business.
Ø The banking outlets with BCs have now been established in remote areas or slums where banking penetration was low or
non-existent. Select Issues and Suggestions
Ø There is need to extend financial inclusion to the disabled, including those elderly where locomotor activity, vision and
hearing is impaired.
Ø RBI directives to banks to be accessible to all kind of disabled have not recorded notable progress with very few ATMs and
bank branches being disabled-friendly.
Ø Technological issues like frequent machine breakdowns and lack of connectivity which negatively impacts confidence of
customers towards informal banking.
Ø There is a need for facilities like biometric-enabled and multi-lingual hand-held devices which can provide confidence in
rural masses.
Ø There is significant difference in the socio-economic background of people living in rural India and therefore there is a
need for flexibility in financial schemes designed for different segments of unbanked population.
Ø NABARD must be made accountable for furthering progress of financial inclusion in rural areas given their domain
knowledge.
Ø Financial literacy is a constant challenge and therefore bankers have been adopting different strategies to reach large
segments of the society, mainly in villages.
Ø There is a need to standardise literature/material to extend financial literacy amongst the unbanked
Resolving Insolvency Introduction
Ø India improved its position on the ‘Ease of Doing Business’ ranking, 2018 released by the World Bank by 30
places to 100th position.
Ø One of the reasons cited for that was its performance on resolving insolvency. The improvement was
basically noticed after the government put into effect the Insolvency and Bankruptcy Code (IBC) with a
regulator Insolvency and Bankruptcy Board of India (IBBI) in 2016. Tackling Insolvency
Ø Insolvency arises when an individual or organisation could not pay its financial dues to its lenders.
Ø Insolvency can be tackled through restructuring the debt or if it not settled this way legal action may be
taken against the insolvent, the company concerned is restructured or else its assets are sold to pay the
debts.
Ø Well-defined and time-bound norms for entry and exit are considered key to ease of doing business. The
code filled the gap in the exit or restructuring of businesses.
Ø Before the enactment of the act, the time taken for resolving insolvency was quite long. There were
overlapping jurisdictions of various laws governing insolvency resolution.
Features of Insolvency and Bankruptcy Code (IBC)
Ø The National Company Law Tribunal (NCLT) adjudicates insolvency resolution for companies. The Debt
Recovery Tribunal (DRT) will adjudicate insolvency resolution for individuals.
Ø The code shifts the responsibility to the creditor to initiate the insolvency resolution process against the
corporate debtor. However, the corporate debtor can also file for insolvency.
Ø After a case is admitted by NCLT, resolution process will have to be completed within 180 days, extendable
by another 90 days.
Ø There is also provision for fast tracking resolution process to complete it in 90 days which could be
extendable by further 45 days. However, only small companies and start-ups could opt for this method.
Ø During the resolution process financial creditors’ assess whether the debtors’ business could be restructured
and also consider options for the revival.
Ø If the insolvency resolution process fails, the liquidation of assets begins.
Ø The resolution processes are conducted by licensed Insolvency Professionals (IPs).

Conclusion
Ø Issues will keep coming in Insolvency cases, but the experiment to make it easier for companies to exit or
restructure will make it easy to do business in India.
Ø Care has to be taken that the process does not linger on to make it tedious for companies to do business.
Strengthening of Cyber Security Digitisation
Ø Digitisation is the rise of the digital transaction where bank, customers, merchants, industries and other
stakeholders form an interdependent financial system network.
Ø Banking and financial transactions play a significant role in our daily lives. Financial institutions should be at
the fore-front to adopt latest technologies and to enhance customer experience thus eliminating rural and
urban gap.

The following factors influence the digitisation in banking:

Ø Changing customer behaviour in favour of digitisation.
Ø Financial inclusion and government initiatives.
Ø Leveraging increased smart phone usage and mobile penetration.
Ø BHIM UPI is a revolutionary payment system which is a first of its kind across the globe. With 60 banks being
part of BHIM UPI, around 82 lakh transactions per month are taking place.
Ø BHIM Aadhaar is a digital payment acceptance solution where customer performs transaction by providing his
Aadhaar number and biometric authentication.

Cyber Security
Ø Digitisation in the banking industry has given more thrust on the implementation of cyber security in the
digital platform.
Ø Security is to be ensured at all the touch points of the digital transactions. The complete eco-system is to
cyber-sanitised for all the transactions to be flawless.
National Cyber Security Policy 2013 (NSCP)
Ø National Cyber Security Policy was released in 2013 as a formalised step towards cyber security by the Ministry
of Communication and Information Technology under Department of Electronics and Information Technology.
Ø The policy has been built to offer a secure and resilient cyber space for citizens, businesses and the
government.
Ø Its mission is to protect cyberspace information and infrastructure, build capabilities to prevent and respond to
cyber-attacks and minimise damages through coordinated efforts.

Few strategies adopted by the policy include:

Ø Creation of a secure cyber ecosystem through measures such as a national nodal agency, encouraging
organisations to designate a member of senior management as the chief information security officer and
develop information security policies.
Ø Strengthening the regulatory framework coupled with periodic reviews, harmonisation with international
standards and spreading awareness about the legal framework.
Ø National Computer Emergency Response Team (CERT-in) functions as the nodal agency for coordination of all
cyber security efforts, emergency responses, and crisis management. o Securing e-governance by
implementing global best practices and wider use of public key infrastructure.
Ø Protection and resilience of critical information infrastructure with the National Critical Information
Infrastructure Protection Centre (NCIIPC) operating as the nodal agency.
Ø To promote cutting edge research and development of cyber security technology.
Ø Human Resource Development through education and training programmes to build capacity.
Cyber Swachhta Kendra (Botnet Cleaning and Malware Analysis Centre)
Ø To combat cyber security violations and prevent their increase, CERT-in in 2017 launched Cyber Swachhta
Kendra (Botnet Cleaning and Malware Analysis Centre).
Ø The Centre is operated by CERT-in under Information Technology Act, 2000. It is part of Ministry of
Electronics and Information Technology’s Digital India initiative, will detect botnet infections in India, and
enable cleaning and securing systems of end-users.
Ø The Cyber Swachhta Kendra is a step in the direction of creating a secure cyber ecosystem as envisaged
under the National Cyber Security Policy.

The Centre offers the following security and protective tools:

Ø USB Pratirodh, which is aimed at controlling the unauthorised usage of removable USB storage media
devices.
Ø An app called Samvid which allows only pre approved set of executable files for execution.
Ø M-Kavach, a device for security of Android mobile devices which protects from malware that steal personal
data and credentials.
Information Technology Act
Ø IT Act, 2000 is the primary law in India dealing with cyber crime and electronic commerce which had
subsequent amendment in 2008.
Ø IT act has detailed various cybercrimes and also specified the penalty for the cyber wrong doings by
fraudsters online. Phishing is the most common banking fraud which happens online.
Ø Phishing is a type of social engineering attack often used to steal user data, including login credentials and
credit card numbers.

Conclusion
§ With all the measures towards strengthening of Cyber Security our country shall provide a completely cyber
secure architecture that is secure and reliable for the digital transactions.
§ However, it is to be continuously upgraded, as new threats emerge. Awareness will enable to face and
mitigate the risk.
Rural Banking: Translating Vision to Reality Introduction
Ø As the father of our nation said, ‘India lives in villages’, rural development is the sine-qua-non of the overall
development of India.
Ø Since independence it has been the constant endeavour of our policy makers to give adequate thrust to
bringing rural prosperity in India.
Ø During the last 70 years, beginning with cooperative credit structure, followed by nationalisation of PSBs and
expansion of their branch network in rural areas and regional rural banks, the formal rural institution has
grown and expanded many-fold.
Ø Rural population is still ‘financially excluded’, still under the clutches of money lenders, which is a matter of
grave concern.
Concerns / Challenges
Ø Since rural households have irregular income and expenditure patterns, the banks have high
nonperforming loans in rural areas.
Ø The rural economy is dependent on vagaries of monsoons. The loan waivers driven by political agenda
further aggravate the bankers’ woes.
Ø Since many rural people are not literate so not comfortable using ATMs, phone banking or internet
banking hence mostly dependent on bank branches leading to banks’ high cost to serve.
Ø Developing an inclusive yet sustainable rural financial system is extremely challenging and involves
comprehensive understanding of complementary issues.
Ø A large number of accounts created under PMJDY do not have any money and lie dormant which only
increases costs for banks to run these accounts. Poor people do not have surplus money to save in bank
account.
Ø Payment banks have issues like complex user interfaces, lack of internet penetration, lack of grievance
redressal mechanisms etc which might deter users.
Financial Inclusion
Ø In India the first structured attempt towards financial inclusion featured in 2005 when it was first
launched by K C Chakraborthy, the chairman of Indian Bank.
Ø RBI has been undertaking financial inclusion initiatives in a mission mode through new products,
relaxation of regulatory guidelines and other supportive measures.
Ø With a view to provide hassle free and timely credit to farmers Kisan Credit cards has been issued by the
banking system.
Ø In 2006 RBI permitted commercial banks to make use of NGOs/SHGs, micro finance institutions and other
civil society organisations as intermediaries for providing financial and banking services.
Ø RBI also directed the commercial banks in different regions to start a 100% financial inclusion campaign,
as a result of which Puducherry, Himachal Pradesh and Kerala announced 100% financial inclusion in all
their districts.
Ø RBI’s vision for 2020 is to open nearly 600 million new customers’ accounts.
Ø Priority sector lending (PSL) targets may not reach the deserved, as many banks shy away from lending
money to the poor.
Ø For example, gold loans are available for lower rate for farmers. But people who do not even do
agriculture receive these loans using their contacts at banks. So PSL gets diverted away from the deserved
to the undeserved.
Way Forward
Ø Banks need to initiate suitable training and skill development programmes for effective
functioning of business correspondents (BCs).
Ø Designing suitable innovative products to cater to the requirements of poor villagers at
affordable rates.
Ø To wean away villagers from borrowing from money lenders, banks should develop
simplified credit disbursement procedures and also flexibility in their processes.
Ø Providing easy cheap remittance facilities to migrants is an absolute imperative.
Ø To achieve meaningful financial inclusion banks should give priority for small farmers as
compared to large farmers while sanctioning credit.
Ø Need to promote electronic benefit transfer systems effectively for boosting rural banking.
Ø Government needs to make efforts on a war-footing for adequate infrastructure such as
physical and digital connectivity, uninterrupted power supply etc.
Ø India has the largest postal network in the world with over 89% post offices in rural areas.
Ensure that post-offices play a greater and more active role.
 A New Dimension in Highway Development Introduction
Ø Bharatmala is a comprehensive highway development programme for the country. The highways sector
continues to remain a critical infrastructure sector due to existing gaps and enhanced transportation
requirements. Bharatmala marks the beginning of new era for highways infrastructure.
Ø Bharatmala envisages a quantum leap forward to redefine road development in terms of development,
operation and maintenance of national highways across the country.

Bharatmala – Six Components

Ø Economic Corridors.
Ø Inter-corridors and feeder roads.
Ø National corridors efficiency improvement.
Ø Border and international connectivity roads.
Ø Coastal and port connectivity roads.
Ø Greenfield expressways.
Grand Challenge Mechanism
Ø Encouraging state governments to participate in the development process through grand challenge
mechanism is another distinguishing feature.
Ø Concerned state governments play a proactive role, particularly in terms of providing project land at
a fast pace, shall get priority of being identified for implementation.

Impact of Bharatmala
Ø Optimised efficiency of traffic movement on roads across the country. It will improve the average
speed of vehicles by about 20-25%. Improved road infrastructure, removal of congestion points on
the network.
Ø Improve logistics efficiency for both freight and passenger movement on national highways across
the country. This will have a positive impact on the Logistic Performance Index (LPI).
Ø Improvement in the fuel efficiency of the vehicles.
Ø Connecting 550 districts in the country through national highway linkages.
Ø Creation of major opportunities for investment and construction activities in the highways and
associated infrastructure development.
Ø It is expected to generate about 34 crore man-days of employment during the construction phase
and approximately 22 million permanent jobs driven by increased level of economic activities.
 India’s Credit Rating: Boost to Investors’ Sentiment Introduction
Ø Moody’s has upgraded India’s rating from BAA3 to BAA2 and outlook from positive to stable.
Moody’s have cited various reasons for this upgrade: o Change in taxation regime with the
introduction of GST.
Ø Insolvency and Bankruptcy Code to resolve bankrupt cases.
Ø Institutional reforms in the form of India’s aggressive stance for a less cash economy.
Ø Raising the FDI equity limits on various new projects to enhance India’s road and port network.
Ø Following the fiscal consolidation path.
Importance of Credit Ratings
Ø CRA, in order to rate investments, consider financial, macroeconomic, and stability indicators in a
borrower country and its economic outlook to estimate its ability and willingness to pay its debt.
Ø Credit rating should not be intended as a guarantee of credit quality as the future cannot be
forecast accurately and rating should be considered just a market signal.
Ø Though the credibility of rating agencies has moderated during post financial crisis where AAA
rated investments defaulted, their importance has not diminished.
Ø To raise capital in international financial markets and attract foreign investment, governments and
companies in emerging market economies like India depend on the ratings of International CRA.
Ø The upgrade in ratings by Moody’s will benefit India in many ways.
Ø India is a capital-scarce economy and given the improvement in ratings, it will be easier to attract
capital from abroad which in turn will help fuel the economic growth.
Ø Investments could be attained at a lower borrowing cost as the risk premium on the credit will be
reduced.
Ø The external deficits could be financed easily at a lower cost.
Ø The surge in investment will help improve the stock market performance of the economy
Performance of Indian Economy
Ø India’s macroeconomic health particularly its investment position and debt indicators have improved since
2013.
Ø India has clearly demonstrated its ability to repay its debt and always exhibited remarkably high willingness
to pay; it has never defaulted on its obligations.
Ø A fair upgradation in credit rating by other credit rating agencies can help India greatly in raising the
capital.
 EMPOWERING RURAL WOMEN: THE WAY FORWAD
Ø Poverty is particularly acute for women living in rural households. Women’s poverty is directly related to the
absence of economic opportunities and autonomy. Poor access to economic resources, education and
support services results in their low participation in the decision-making processes. Rural women are not a
homogenous category and thus, have different location specific needs.

Ø Rural women experience inequalities in healthcare and nutrition, have lower access to employment, lack
ownership of property and are also victims of domestic violence. Yet, they take disproportionate
responsibility for housework and child-care as compared to men. This asymmetrical division of labor, rights
and assets renders them more vulnerable.

Ø Rural women who constitute 66 per cent of total labour in farm production and livestock related activities
have little role in marketing or selection of either livestock or their crop. Market economy trends in the era of
globalization have further widened the gap between educational and technological opportunities available
for rural women.
Ø There also exists a large divide between rural and urban women. Though work participation rate of rural
women is higher than their urban counterparts, higher work participation rates per se do not indicate a
higher level of welfare such as higher educational capabilities and/or asset and income. In fact, the situation
is quite dismal for rural women especially for women belonging to SCs/STs and other vulnerable/marginal
categories.

Ø Work participation rate of female workers in rural areas was higher which stood at 30 per cent as compared
to the work participation rate of only 15.4 per cent in urban areas as per Census, 2011. Most of the rural
women are engaged in the unorganized sector, agriculture & allied activities, microenterprises etc. These
activities are drudgery-based and low income. Digital technologies have further depended this gap due to
poor digital literacy among rural women as compared to urban women.

Ø With around 60 per cent of India’s population engaged in farming, women contribute to almost 70-80 per
cent of farming activities but are neither legally, nor socially recognized as farmers, there is significant
gender segmentation of operations in agriculture. While men predominate in activities such as ploughing
and harvesting which have largely become mechanized these days, women predominate in activities like,
weeding, transplanting and inter-cropping that involve more drudgery. Technological implements are either
not available, or women have little access to them.
Ø Men have entered into more diversified occupations in non-agricultural sectors, while women have largely
tended to remain in agriculture indicating the need for creating opportunities outside agriculture in rural
areas.

Ø While, more than 18 per cent of farm families in India are headed by women, they face problems of access
to pattas or title to land. As a result, they remain excluded from many government opportunities such as
access to insurance, markets, credits etc. Lack of recognition of their rights hampers Indian women’s
possibilities not only to become more successful and productive farmers, but also gain self-sufficiency and
decision making power that can improve the livelihoods of their families and the community at large.

Ø There are fewer opportunities for women due to segmentation of women workers for limited activities.
Nearly 80 per cent of the rural enterprises are of women. Most of these enterprises in rural areas are home
based subcontracted works and are the lowest end of the value chain.
Challenges for rural women
Ø Poor education: Poor knowledge on legal rights hampers the social and political empowerment of rural
women.
Ø Digital literacy: Poor access to Information Technology (IT) by rural women intensifies existing inequalities.
Digital literacy has the capacity to empower rural women by raising social and political awareness, improving
educational and employment opportunities.
Ø Lack of skills
Ø Vulnerability to climate change: The effect of climate change drivers rural women into dangerous
situations/risks and vulnerabilities.
Ø Poor access to technologies: There is inadequate development with respect to technologies specifically
tailored to women-specific occupations. Besides, involvement of women in technology development and
transfer has also received poor attention from both scientific and administrative wings of the government.
Ø Lack of convergence between various Government programme: Due to lack of adequate convergence
among the various schemes implemented by various Ministers, particularly, Ministry of Agriculture, Ministry
of Rural Development and Ministry of Women and Child Development, empowerment of rural women
remains scattered and isolated.
Ø Poor livelihoods opportunities outside agriculture: Women are rarely involved in the backward and forward
production linkages with agricultures.
 Government efforts
Ø Deen Dyal Upadhyay Antyodaya Yojna (DAY-NRLM): Ajeevika is a major project of Ministry of Rural
Development. It focuses on rural women and aims to achieve universal social mobilization by involving rural
women. At least one woman member from each identified poor rural household is to be brought under the
Self Help Group (SHG) network in a time bound manner.

Ø There are other two important components of Ajeevika, relevant for improvement of livelihoods of rural
women. Deen Dyal Upadhyay Grameen Kaushalya Yojna (DDU-GKY) aims to skil rural youth who are poor
and provide them with hobs having regular monthly wages or above the minimum wages. It is one of the
clusters of initiatives and full social inclusion of the candidates is ensured by the mandatory coverage of
socially disadvantaged group, where-one third of the persons covered should be women. Mahila Kisan
Sashaktikaran Pariyojana (MKSP) is another component that aims to improve the present status of women
in Agriculture and to enhance the opportunities for empowerment.
Ø Ministry of Women & Child Development has launched an extensive training programme with an objective of
empowering Elected Women Representative (EWRs) and to help them assume the leadership roles expected
to them and guide their villages for a more prosperous future.
Ø Rashtriya Mahila Kosh (RMK), of Ministry of Women & Child Development, extends microcredit to the
women in the informal sector through a client friendly, without collateral and in hassle-free manner for
income generation activities.
Ø In order to support rural women and provide them with convergent support, Ministry of Women & Child
Development, Government of India approved a new scheme namely Mahila Shakti Kendra (MSK) as a sub
scheme under the Umbrella Scheme of Mission for Protection and Empowerment for Women for
implementation during 2017-18 up to 2019- 20 to empower rural women through community participation.
MSK Scheme is envisaged to provide an interface for rural women to approach the government for availing
their entitlements and for empowering them through training and capacity building.
Ø Community engagement through College Student Volunteers is envisioned in 115 most backward districts as
part of the MSK Block level initiatives.
Ø The scheme at the block level will provide an opportunity to Student Volunteers to participate in the
development process by bringing change in their own communities and ensuring that women are not left
behind and are equal partners in India’s progress.
Ø Ministry of Women & Child Development, has also prepared a portal namely National Repository of Information for
Women (NARI) that will provide citizens easy access to information on government schemes easy access to information
on government schemes and initiatives for women.

Ø Portal also provides information to women on issues affecting their lives – for example, there are tips on good nutrition,
suggestions for health check-ups, information on major diseases, tips for job search and interview.

Ø Empowered rural women can play an important role in linking other women and girls to their entitlements such as
access to nutritious food and supplements, equality in participation of women in government programs such as
Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), National Rural Livelihood Mission
(NRLM), PM Aawas Yojna (PMAY), and crèches for women at working sites etc. They can also play an important role in
bringing about a mindset change towards the value of girl child by actively associating themselves with programmes
such as Beti Bacho Bet Padhao (BBBP), Swachh Bharat Abhiyan etc.
 ECONOMIC EMPOWERMENT OF RURAL WOMEN
Ø The systematic focus on women’s awakening has been consolidated into a more holistic, sharper mission
under the Centre, via the appropriately named Mission Poorna Shakti, which provides a single window for all
women centric programmes run by various ministries.
Ø Rural women still remain a disadvantaged segment of Indian society. Statistics show that whereas 86.1 per
cent females are engaged in agriculture, the figure of males is 74%.
Ø While 7.1% rural females are engaged in manufacturing the percentage for rural males is 7 i.e. less than that
of females. Most of the training programmes have less female participation.
Ø Majority of rural women suffer not only from economic poverty but also from ‘Information poverty’.
Ø Equal pay for equal work is one of the cornerstones of the gender equality movement the world over. Wage
disparities have always existed in rural parts of the country, but in some spheres of activity, the divide has
widened. So while men were paid 70 per cent higher wages than women for ploughig work at the end of
2004-05, the difference rose 80.4 per cent in end March 2012 and stood at 93.6 per cent at the start 2013-
14.
Ø Women’s economic empowerment Women’s ‘Self-help and Savings Groups’ are on the increase and their
efficiency is noteworthy. No external financial assistance has been given to them to start and conduct the
operations of these groups. Deposit amounts have grown and are credited to the nearby rural banks. The
banks have praised their regularity and clear accounting.
 Role of education in empowering women
Ø Education is considered as a milestone for women empowerment because it enables them to respond to
the challenges, to confront their traditional role and change their lives.
Ø As education is both an input and output of human development, educational equity will ensure enabling
and entrepreneurial development. The female literacy levels according to the Literacy Rate 2011 Census are
65.46 per cent where the male literacy rate is over 80 per cent.
Ø New UNESCO data proves education transforms development.
Ø It says:
Ø If all women had a primary education, child marriages and child mortality could fall by a sixth, and
maternal deaths by two-thirds.
Ø Education empowers women. Educated girls and young women are more likely to know their rights and
to have the confidence to claim them.
 Constitutional provisions and laws
Ø Article 14 Men and women to have equal rights and opportunities in the political, economic and social
spheres.
Ø Article 15(1) Prohibits discrimination-against any citizens on the grounds of religion, race, sex, caste etc.
Ø Article 16 Equality of opportunities in matter of public appointment for all citizens.
Ø Article 39(d) Equal pay for equal work for both men and women.
Ø Article 42 The state to make provision for ensuring first and humane conditions of work and maternity
relief.
Ø Government has also enacted specific laws to safeguard the interests of women and for up gradation of
their status. These are,
§ The Hindu Succession Act, 1956 which provides for women the right to parental property.
Ø The Dowry Prohibition Act, 1961 which declares the taking of dowry an unlawful activity and thereby
prevents the exploitation of women.
Ø Equal remuneration Act, 1976 which provides payment of remuneration equal with men for work of equal
value.
Ø The Medical Termination of Pregnancy Act, 1971 which legalizes abortion conceding the right of women to
go for abortion on the ground of physical and mental health.
Ø The Criminal Law Amendment Act, 1983 which seeks to stop various types of crimes against women.
Ø The protection of Women from Domestic violence Act, 2005 provides for more effective protection of the
rights of women guaranteed under the constitution who are victims of violence of any kind occurring within
the family.
Few initiatives to encourage empowerment of women by Government of India Include:
Ø Aajeevika Skill : Making Rural Poor Youth Employable
Ø Mahila e-Hatt - Digital marketing portal Mahila e-Haat launched for women entrepreneurs: Launched by
the Women and Child Development Ministry. The only eligibility criteria to register is that the sellers – any
women or women members of a self-help group – have to be above 18 years of age to eliminate the
problem of child labour.
Ø Support to Training and Employment Programme for Women (STEP) – SEP scheme is intended to benefit
women who are in the age group of 16 years and above across the country. The assistance under STEP
scheme will be available in any sector for imparting skills related to employability and entrepreneurship.
Ø Rajev Gandhi National Creche Scheme for the Children of Working Mothers
Ø Effective day care for young children is essential and a cost effective investment as it provides support
to both mothers and young children. Lack of proper day-care services is, often, a deterrent for women
to go out and work.
Ø Women working in the organized sector can avail day care facilities for their children which their
employers are obliged to provide under various legislations.
Ø On the other hand, the need of the children of the women working in the unorganised sector still
remains largely unaddressed.
Ø Conclusion: Empowering Rural Women is essential, not only for the well-being of individuals, families and
rural communities, but also for overall economic productivity, given women’s large presence in the
agricultural workforce worldwide.
 National Policy for Women 2016
Ø The vision is to create ‘a society in which women attain their full potential in all spheres of life and influence
the process of social change. ‘
Ø The policy does not recognize women as active agents and only reiterates many measures that are mostly
directed at managing the manifestations of the larger structural issues.
Ø The objectives listed in the policy which are reproductions of many earlier documents especially 2001
policy.
Ø Following are the priority areas Health including food security and nutrition.
Ø Focus on nutrition and reproductive health
§ Issues of elderly, women at menopausal age.
§ The solutions are directed at health insurance model but it can address some of the structural
issues.
§ Outside paid economy and poor control over household resources, contributory health schemes
are bound to affect women adversely.
Ø Education
§ Retention of girls in school and providing gender specific needs including issues of sexual
harassment are core concern of education section.
§ Solution doesn’t take into account the diversities of different regions and sections and the
emerging complexities.
What is the need for the new policy?
Ø Retention of girls in schools, providing for their gender specific needs including issues of sexual harassment
are left out or given negligible importance till date.
Ø Many women work in semi - marketised, semi monetised and non contractual subsistence activities either in
agriculture, petty production or services, which are outside the organised sector should be taken care of.
Ø One of the most important challenge that has close association with the overall decline in the status of
women in our society is the economic participation of women because it intersects with other structural
issues which needs attention.
Ø The long run decline in women's workforce participation rate, evident even during most distinctive phase of
accelerated rates of economic growth still remains a large puzzle that needs to be addressed.
Ø The women are burdened by the responsibility of sustaining the agriculture which is in crisis, and it needs an
intervention to protect them.
Ø Lack of property rights for women especially agricultural land has affected women's decision making in
agriculture and they must be empowered.
Ø Access to credits and extension services which are based on the ownership of land have also been issue for
the women entrepreneurs.
Ø The distress migration of women from rural to urban areas, and their segregation into low paid and highly
exploitative informal employments such as paid domestic work must be addressed.
 Economy
qThe national policy acknowledges the importance of economic participatory of women,
and one of the objectives of the policy is to increase and incentivize work force
participation of women in the economy.
qThe issues of women’s economic participation across sectors are discussed under three
specific sectors; agriculture; industry and service detailing the specific contexts and
measures that requires to be undertaken.
qAgriculture constitutes for the bulk of women workers. Yet, lack of property rights for
women, especially agricultural land has affected women’s decision making in agriculture.
qAccess to credits as well as extension services which are based on ownership rights on land
have also been issues for women cultivators.
 Violence against women
q Issues of
§ adverse sex ratio,
§ trafficking of women and girls,
§ monitoring and managing violence against women including sexual harassment at workplace.

q Address all forms of violence against women through a life cycle approach, Legislations affecting /relating to
women will be reviewed/harmonized to enhance effectiveness,
• Improve Child Sex Ratio (CSR),
• strict implementation of
• advisories,
• guidelines,
• Standard Operating Procedures (SoPs) and protocols,
• prevention of trafficking at source,
• transit and destination areas for effective monitoring of the networks.
Governance and decision making
Ø Gender inequality in governance structures and forums are also outlined.
Ø The solutions of which are limited to gender sensitive training and reservations for women ignoring the
deep rooted nature of such issues.
Ø It is time to take into account of the effectiveness of this approach, with newer challenges.
Ø The most important commitment which can have large scale implications in terms of assessing and
monitoring women’s status is the promise of gender disaggregated data across all important dimensions of
women’s life.

Environment and Climate Change:

Ø Addressing gender concerns during distress migration and displacement in times of natural calamities due
to climate change and environmental degradation.
Ø Promotion of environmental friendly, renewable, non–conventional energy, green energy sources for
women in rural households.
How to Achieve?
Ø Enabling safety and security of women – with initiatives such as
Ø One Stop Centres,
Ø Women Helpline,
Ø Mahila Police Volunteers,
Ø Reservation of women in police force,
Ø creating immediate response mechanism through panic buttons in
Ø mobiles,
Ø public and private transport,
Ø surveillance mechanisms in public places.
Ø Creating eco-systems to encourage entrepreneurship amongst women – through platforms like
Ø Mahila E-Haat,
Ø dedicated theme based exhibitions,
Ø focussed skill training,
Ø mentoring through Women Entrepreneurship Council,
Ø availability of easy & affordable credit and financial inclusion.
Ø Training and capacity building of all stakeholders including youth through
§ Gender Champion initiative,
§ frontline workers,
§ women sarpanches and
§ all officials dealing with policy and delivery systems impacting women.
Ø Facilitating women in workplace – through
§ gender friendly work place,
§ flexi timings,
§ increased maternity leave,
§ provision of child care / creches at workplace,
§ life cycle health care facilities
Mahila Police Volunteers (MPV):
Ø The MPV will encourage women to come forward with complaints of violence and
discrimination, provide information to them on remedies for this and assist them in taking
their cases to police authorities.
Ø MPV will serve as an example to the village and encourage a woman friendly environment
both within and outside the police station.
Ø Any empowered woman from the community, who is of 21 years of age and is at least 12th
pass can be selected to be a MPV.
Ø The Union Cabinet gave its approval for making reservation of 33 percent for women,
horizontally and in each category (SC/ST/OBC and others) in direct recruitment in non-
gazetted posts from Constables to subinspector in the police forces of all Union Territories,
including Delhi Police.
Ø The portal (SHe-Box) is an effort to provide speedier remedy to women facing sexual
harassment at workplace as envisaged under the SH Act.
Ø Once a complaint is submitted to the portal, it will be directly sent to the ICC of the
concerned Ministry/Department/PSU/Autonomo us Body etc. having jurisdiction to inquire
into the complaint.