PremiumIn the case of public sector banks, one study showed that the share of women in the officer category increased from about 7% in 2001, to about 14.4%, in 2011, says Usha Thorat, former deputy governor, RBI
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Mint speaks to Usha Thorat, former Deputy Governor, RBI on how the participation of women in Indian banking and finance has improved and asked suggestions for first-time investors, particularly women in India. Thorat believes that women must be financially independent and shared four money rules that must be kept in mind. Excerpts-
Is there a significant presence of women in Indian banking and finance more generally, especially at higher levels?
In the case of public sector banks, one study showed that the share of women in the officer category increased from about 7% in 2001, to about 14.4%, in 2011. But in the executive category, I think the figures were not very significant. So, women have been obviously reaching the officer cadre, but they were not really reaching the top share of, say, general managers, or beyond that. I don't think there’s much of a difference between the public sector and private sector in this aspect. Many interventions are needed to remedy the situation. To see a higher number of women in senior positions in the banking sector, active intervention is required; flexible working hours, part-time job assignments, job sharing, addressing issues pertaining to women at work, the whole facility of day-care and creches and allowing women to get back to work, are important.
You currently head the mutual fund advisory committee of SEBI. Is there something that the regulator or the mutual fund industry can do to bring more women into this industry both as professionals and investors?
Initiatives by the banking industry, the mutual fund industry, and by associations like AMFI are required to provide the kind of facilities and infrastructure, which will enable more women to really enter and remain there. As far as investors are concerned, I think that's totally a different area. Because most women even the most educated, really have no clue about personal finances. I think that's not at all a good situation. Even if she's single or not, I think it's extremely important that a woman gets educated financially and plans her own financial needs and for her own life.
Any suggestions for first-time investors particularly women in India?
Yes- do not invest in anything that you do not understand even if that provides a higher return, keep funds aside for emergencies in safe and liquid assets, plan for specifically bulky expenses, and don’t fall into a debt trap.
As far as mutual funds are concerned, I think the attempt of SEBI and the mutual fund advisory committee is to make sure that everything is true to the label, and the risk profile of the fund is transparently available. Just because a particular fund house has launched a scheme, doesn’t mean that the risk is the same in all the funds. It's only as good or as bad as the underlying instrument in which the money is invested. And that is what is the regulation attempts to have – different categories of mutual funds; investors understand and quickly as to what kind of risk profile she or he has, and according to that, choose the fund.
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