Prime Minister Narendra Modi on September 2, 2025, virtually launched the Bihar Rajya Jeevika Nidhi Saakh Sahkari Sangh Limited, a major initiative designed to provide affordable funds to women’s self-help groups (SHGs) across the state. However, the event took an emotional turn when the Prime Minister strongly criticised the RJD-Congress alliance, alleging that his late mother was subjected to abuse from their stage during a recent political event in Bihar.

Visibly moved, PM Modi said that such remarks were not just an attack on his mother but an insult to mothers, sisters, and daughters across Bihar and India. Addressing the audience virtually, he noted that his mother, who lived to the age of 100 before passing away, had no connection with politics, and yet her memory was disrespected in the political discourse of Bihar.

The Prime Minister shared, “Mother is our world. Mother is our self-respect. My mother was abused from the stage of RJD-Congress in Bihar. These abuses are not just an insult to my mother. These are insults to the mothers, sisters, and daughters of the country. I know the people of Bihar felt the same pain that I did when they saw and heard this.” His words resonated deeply with the women present, many of whom were visibly emotional during his address.

PM Modi also reflected on his mother’s struggles, recalling how she raised her family in extreme poverty. He mentioned that she would never buy a new saree for herself, instead saving every penny for her children. Drawing a parallel, he praised the sacrifice and daily “tapasya” of crores of Indian mothers who dedicate their lives to the well-being of their families.

Bihar Rajya Jeevika Nidhi Saakh Sahkari Sangh Limited: A New Cooperative Model

While addressing the controversy, PM Modi also focused on the economic empowerment of women. He transferred Rs 105 crore into the institution’s bank account, marking the formal launch of the Jeevika Nidhi cooperative.

The scheme’s objective is to provide easy access to affordable loans for rural women associated with Jeevika SHGs. Until now, women entrepreneurs had to rely heavily on microfinance institutions (MFIs) charging high interest rates ranging between 18% and 24%. The new system aims to reduce dependence on MFIs by ensuring larger loan amounts at significantly lower interest rates.

The Jeevika Nidhi cooperative will function as a digital-first financial institution, with all transactions and fund transfers conducted on a secure digital platform. This will not only accelerate financial inclusion but also bring greater transparency to the system. Women associated with Jeevika SHGs, referred to as “Jeevika Didis,” will receive direct fund transfers in their bank accounts without intermediaries.

To enable smooth functioning, 12,000 community cadres are being trained and equipped with tablets. This will allow them to manage the digital operations and provide assistance to SHG members across rural Bihar.

Women Empowerment and Rural Entrepreneurship

The initiative is seen as a major step toward empowering rural women. Over the years, Jeevika SHGs in Bihar have become a backbone of the state’s rural economy, fostering entrepreneurship and establishing small enterprises and producer companies. However, limited access to affordable credit often restricted their growth.

The Jeevika Nidhi cooperative is expected to transform this landscape by ensuring timely and adequate access to finance at affordable rates. By doing so, it will strengthen entrepreneurship development among rural women and accelerate the growth of community-led enterprises.

The event witnessed the participation of nearly 20 lakh women across Bihar, many of whom joined virtually to celebrate the launch. This large-scale involvement highlighted the widespread impact the initiative is likely to have on rural households.

Political Context and PM Modi’s Emotional Stand

The timing of PM Modi’s emotional remarks against the RJD-Congress alliance comes in the backdrop of rising political tensions in Bihar. By linking the insult directed at his late mother to the dignity of Bihar’s women, the Prime Minister sent a strong political message, rallying emotional support while simultaneously unveiling a policy initiative aimed at women empowerment.

Analysts believe that the dual nature of the address—part personal, part policy—was intended to strengthen both emotional connect and economic support for women in Bihar. It also underscores the growing political narrative where women’s empowerment is becoming a central theme in election campaigns and governance initiatives.

Digital Platform for Financial Access

The emphasis on digital operations is a crucial aspect of the Jeevika Nidhi cooperative. With India steadily advancing towards a cashless economy, integrating SHGs into a digital ecosystem ensures that rural women are not left behind.

The platform will offer:

• Faster fund disbursements directly into bank accounts.

• Lower transaction costs compared to traditional methods.

• Transparency and accountability, reducing risks of exploitation by intermediaries.

• Capacity building through training of community cadres.

This model can potentially serve as a blueprint for other states, expanding the reach of affordable finance to rural women nationwide.

Conclusion

The launch of the Bihar Rajya Jeevika Nidhi Saakh Sahkari Sangh Limited is not just about financial empowerment but also about restoring dignity and respect to women in rural India. While PM Modi’s emotional remarks about the insult directed at his late mother dominated the political narrative, the policy initiative itself reflects a long-term vision for inclusive growth.

With Rs 105 crore already allocated, a strong digital infrastructure in place, and the participation of lakhs of women, the cooperative is expected to significantly reduce financial vulnerability in rural Bihar. By bridging the gap between women’s entrepreneurship and affordable finance, the Jeevika Nidhi cooperative promises to be a game-changer.

As Bihar’s women entrepreneurs step into a new phase of financial independence, the initiative marks a defining moment not just in Bihar’s rural development, but also in India’s broader journey toward women-led growth and empowerment.

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