Breaching Institutional Patriarchy in Banking: Case Study of the Mann Deshi Bank

Financial inclusion of women, especially of poor women, remains a challenge across the globe. When a poor rural woman seeks a loan from a mainstream bank, she is told that she will not be able to pay back the loan or the instalments, that she does not possess the knowhow for starting or running a business. The refusal of the bank not only breaks the spirit of an individual woman but also makes it difficult for India to reach its goals of achieving financial inclusion and thus deepening democracy. The mainstream banks personify the hegemonic features of society such as urban, male, upper class, upper caste. Their denial of loan to those from the lower strata and women embody institutional patriarchy. Our research question for this chapter is: can microfinance lead to financial inclusion? What kind of alternate financial models can make this happen? Can financial inclusion of women can result in larger social political entitlements and enhancement of citizenship? We consider the case study of the Mann Deshi Bank based in Satara district in Maharashtra. The research is based on mixed methodology, which entails analysis of data provided by the bank as well as interviews with stake holders and bank officers. This chapter contends that the work of Mann Deshi Bank can serve as a new benchmark in the microfinance industry in India as it addresses the cash flow needs of marginalized clients, as it works with innovative models based on client demands. We argue that microfinance can, if undertaken with innovation and care, can lead to financial inclusion and that in turn could enhance other entitlements for women.