Only 7% of MSME credit to women; low female labour force limits growth: RBI

On Friday, RBI Executive Director Neeraj Nigam highlighted that low female labour force participation is a barrier to financial inclusion and economic growth. He noted that women receive only 7% of the credit to MSMEs, despite nearly 20% of these businesses being women-led. Speaking at the 'Financing Women Collaborative' conference, Nigam emphasized the need for increased credit supply to women and cited structural issues like societal norms and stereotyping as challenges. He also mentioned RBI’s initiatives, including 2,400 financial literacy centers, to address these barriers.