Explanation:

An memorandum of understanding(MoU) has been signed between Rajasthan Grameen Aajeevika Vikas Parishad (Rajeevika) and Stree Nidhi, a government of Telangana organization.

The MoU seeks to establish Rajasthan’s first and the country’s third ‘women’s financial institution’.

‘Rajasthan Mahila Nidhi’ (RMN) will be established in the state following Telangana’s ‘women fund model’. In the budget 2022-23, CM Ashok Gehlot had announced setting up of a bank run by women.

Through RMN, loans up to Rs 40,000 will be disbursed in 48 hours and loans above this amount will be disbursed within 15 days.

For the establishment of RMN, a total grant of Rs 50 crore will be given by the state government in two years—Rs 25 crore will be given in the first year. A proposal requesting a grant of Rs 110 crore from the central government has also been sent.

For the operation of RMN, Rajeevika will be contributing Rs 10 lakh per cluster-level union as share capital from 561 promoted cluster-level federations in a phased manner.

Speaking on the occasion, Rural Development Minister Ramesh Chand Meena said that after the establishment of the Women's Fund, the economic empowerment of women of Rajivika's Self Help Groups will get a boost and things will be made much convenient and streamlined for them to get loans for their enterprises. After the setting up of the institution, the number of loan applications pending in banks are also likely to come down.