Every year the Indian public watches closely as the finance minister of India announces the budget which will help shape their lives. This year's budget has been one of the most forward thinking ever presented. Among the most important announcements has been an innovative proposal to launch India's first All Women Bank (AWB).

Indian Finance Minister P. Chidambaram recently made this historic announcement as part of the government's women empowerment campaign.

In a year when crime against women in India has rightly been the main focus of news across the nation and has directed the way for the Indian Parliament to work on enacting more stringent laws for crimes committed against women, the AWB proposal couldn't have come at a more fitting time.

The AWB is intended to start with initial capital of $180 million in November this year. For the increasingly conscious Indian women, it is a significant step.

Women form over 48 percent of the population and yet are among the most marginalized in the society. They are an important part of India's workforce bringing with them qualities of commitment, values, entrepreneurship along with home management.

Besides their entrepreneurial role in cities, Indian women make significant contributions in agricultural activities, handicrafts, village art and crafts.

And this has grown since the implementation of the flagship anti-poverty program, the National Rural Employment Guarantee Act, where women are hired to work in road construction and other projects to earn their livelihood.

However, challenges in the form of gender bias, denial of opportunities, lack of employers' trust in their capabilities and apprehension are faced by these women on a daily basis.

There are challenges brought by the patriarchal attitude of the Indian society where women's steps forward are as much of a problem as they are a strength. Even though the age-old mind-sets are changing and more and more women are focusing on education and jobs, crime and harassment against women are not in decline. Although flawed law enforcement is one problem, the dominance of patriarchy is the root of the issue. 

Nevertheless, women have now realized the importance of being financially independent and self-reliant. One of the steps to bring in a much needed transformation is the creation of an AWB, which will usher in a new era of enabling women.

An AWB will bring out women's untapped enterprise and financial management fronts, and contribute significantly to create a new wealth of human resources.

It can bring marginalized women under its umbrella in an organized way in rural, semi-urban and urban centers and change their outlook and strengthen their economic well-being through diversified deposit and lending products and services. 

The main objectives which have been set out for the AWB as of now include lending primarily to women and business led by them, including self-help groups. The bank will principally employ women to prevent gender bias and to eliminate the banking community's unwillingness to lend to women-initiated projects.

AWB services have already been well-received in countries around the globe including Pakistan, the United Arab Emirates, Bulgaria through Italian-sponsored bank branches, and Tanzania. This recognizes the increased financial independence of women in these regions. 

Similarly in India, an AWB, a much needed venture, will be a successful step on the way to promotion of women and female-led businesses, which in turn will prove to be a positive step in the Indian growth story.

The author is former executive president of a private sector bank, presently director on the board of Jammu & Kashmir State financial Corporation, and visiting faculty at the University of Kashmir, Department of Business and Financial Studies. opinion@globaltimes.com.cn