DAY-NRLM Partners with 10 Banks to Strengthen 'Lakhpati Didi' Initiative with Larger Loans

Deendayal Antyodaya Yojana-National Rural Livelihood Mission (DAY-NRLM), under the Ministry of Rural Development, has signed a Memorandum of Understanding (MoU) with nine Public Sector Banks and one Private Bank. The banks involved include Bank of Baroda, Bank of India, Bank of Maharashtra, Canara Bank, Central Bank of India, Indian Bank, Indian Overseas Bank, Punjab National Bank, UCO Bank, and IDBI Bank Limited. This partnership aims to empower rural women entrepreneurs across India.

These banks have developed customized loan products specifically designed to support individual women entrepreneurs under DAY-NRLM. The loans will enable these women to secure larger amounts of financing, helping them scale up their businesses.

This initiative aligns with Prime Minister Narendra Modi's vision of creating "Lakhpati Didis," or women earning over one lakh rupees annually. The goal is to uplift women by enabling them to expand their enterprises and achieve greater financial independence.

Shailesh Kumar Singh, Secretary of Rural Development, encouraged the banks to utilize this opportunity to fund women members of self-help groups (SHGs) who are ready to launch or expand economic activities in rural areas. By improving access to credit, this initiative is expected to boost rural employment, offering significant benefits to women SHG members.

Charanjit Singh, Additional Secretary of Rural Development, highlighted the necessity of ensuring that bank branch officials are thoroughly informed about these specially designed products, to avoid any challenges for rural women seeking loans at the branch level.

Deendayal Antyodaya Yojana-National Rural Livelihood Mission (DAY-NRLM) is a poverty alleviation program by India's Ministry of Rural Development. It aims to reduce poverty by providing poor households with opportunities for self-employment and skilled wage jobs, promoting sustainable livelihoods.

Since the inception of DAY-NRLM, SHG-bank linkages have grown considerably, with over Rs 9.5 crore in loans already extended to SHGs. The shift towards providing individual loans reflects the growing aspirations of women, who have progressed from managing small enterprises to aiming for larger-scale ventures.

This move is a pivotal step in supporting women’s economic empowerment and promoting inclusive growth in rural India.