The announcement in the 2013-14 Union Budget of setting up of an All Woman?s Bank (AWB) is yet to sink in. Some of us are gung ho about it, some are skeptical ? how and when will it see the light of the day, while some are quite negative ? another ploy to secure women vote bank. We may love it or hate it but can?t ignore the concept of a bank run by women.

In all probability, the bank would be a pleasant reality given the fact that it will receive an initial capital of Rs 1,000 crore. Given that it would be a PSU bank, it would not need to be issued a special license by the RBI.

In fact, we have woken to the reality quite late as our neighbour Pakistan already has one, running successfully for the last fourteen years with 38 branches across the country.

So AWB is not a new concept; it is already functioning efficiently in UAE where the Ajman Bank has launched Mahra Ladies Banking Service, a women-only bank with seven branches in Dubai, Sharjah and Abu Dhabi. It has introduced specific products for women besides normal banking services, including Mahra Debit Cards. Even Abu Dhabi Islamic Bank launched its First Women Only Branch way back in 2001 in the Emirates.

There is no reason why this model cannot be replicated where there is a huge woman work force employed across all banks.

So what is the big deal about all woman bank?

In metros, the concept may not take off in a big way as women already have access to banking services, not just banking services but to professional banking with predominantly women working at various levels across all banks. But yes, in tier II cities and in rural areas it may prove to be quite a revolution.

Here there is bank where women can bank easily with woman bankers, feel comfortable sharing their concerns, without being shy about their ignorance and to top it all without feeling intimidated. With this, financial inclusion will expand with large portion of the women coming under the fold. But it should not restrict to just banking services, banks should encourage entrepreneurship among women customers by offering them loans on easy terms, or bulk loans to self help groups which are spearheaded by women.

The AWB will work well if it is aligned in these areas. If this bank gives subsidised interest rates to women entrepreneurs, then it may go a long way in contributing towards India?s GDP.

Hence the main objective of the AWB should be to include lending dominantly to women and business led by them including self-help groups. The bank is to principally employ women as majority of their work force and to prevent gender bias and to eliminate the banking community?s unwillingness to lend to women initiated projects. Though this can be a challenge for implementation in small towns and rural areas in particular.

Needless to say, women are immensely contributing to the country?s economy by being part of the agriculture sector, handicrafts sector, service sector, education sector and many more. Their contribution is immense but they need direction and funding, here AWB have a great role to play. The need is for enthusiastic participation, compassionate services and professional execution and not just lip service to the concept.

Women constitute 48 per cent of the population and if they are taken into banking fold it will certainly give big boost to the banking sector and will change the lives of particularly those who are leading marginalised lives.

If AWB has design, ability and reach to contribute significantly towards financial inclusion, then it will be doing great service to the society. But if it just a trophy bank, confined to just metros or at the most tier I cities, then it may not serve the larger purpose and meet the same fate like other reserved-for-women concepts.

We, as ladies, are pinning a lot of hope on AWB. It started with a bang, we hope it won?t die with a whimper.

The author is chief editor, Apnapaisa