Mahila Rojgar Yojana: The Bihar government is taking a revolutionary step to empower half the state’s population with self-reliance and economic empowerment. The second phase of the Chief Minister’s Women’s Employment Scheme has been launched, under which eligible women will receive substantial financial assistance of up to ₹2 lakh to expand their small businesses.

Of the 1.56 crore women who received an initial assistance of ₹10,000 in the first phase, only those who have established a business at the grassroots level will be selected. Are you among the lucky women who will receive this significant installment? In this latest update from January 2026, we will learn in detail the selection criteria, the government’s verification process, and what mistakes could lead to the rejection of your ₹2 lakh application.

Second Phase of Mahila Rojgar Yojana Begins

The Bihar government’s vision is clear—not just to provide financial assistance to women, but to empower them to become ‘businesswomen’. In the first phase of the scheme, the government transferred ₹10,000 to the accounts of over 12.5 million women so they could start sewing, knitting, or small home-based businesses.

Now, the government is offering women whose startups have been successful the opportunity to scale up. This substantial sum of ₹2 lakh will be provided in a lump sum or in installments as needed. The fund aims to transform small businesses into large, profitable businesses that will not only support women’s households but also provide employment to others. This amount will be transferred directly to bank accounts, eliminating the fear of middlemen.

Who will receive ₹2 lakh

The government has clarified that this substantial sum of ₹2 lakh is not a charity, but a performance-based reward. The government has set strict criteria for this. This category will only include women who have successfully utilized the ₹10,000 in the first installment and have actually started a sewing center, dairy farming, a small grocery store, food processing, handicrafts, or incense stick making.

Those whose businesses have been continuously operational and profitable for the past six months during the survey will receive priority. Government officials will conduct physical verification to determine whether the shop or business actually exists or is merely on paper. If a woman’s business is doing very well and needs significant funding for new machinery or raw materials, she may receive the full amount of ₹2 lakh.

These women will not receive a single rupee

The scheme’s rules are being strictly enforced this time to prevent misuse of government funds. If you fall into the following categories, you may lose the second round of assistance:

Women who spent the first installment of ₹10,000 on personal expenses (wedding, illness, or household groceries) and did not start a business may be blacklisted.
If you started a business but closed it within 6 months, you will be considered ineligible for this additional assistance.
Any discrepancy, manipulation, or fraud is found in the documents or business records submitted at the time of application. The application will be immediately rejected.
Women who fail to comply with the scheme’s conditions (such as not reporting on time or not attending training) will be excluded from the race for the ₹2 lakh.

Bihar Government Keeps a Close Eye

As directed by the Chief Minister, each application is thoroughly scrutinized. Committees formed at the district level will determine how much each woman needs. It’s important to note that not everyone will receive ₹2 lakh; this amount may be lower depending on the nature and capacity of the business.

The government’s primary focus is to ensure that previous funding has been utilized to increase employment. A larger amount will only be approved if work is progressing and has potential for expansion. Data collection for 15.6 million women has already begun, and the final list of eligible candidates will soon be released on the portal.