Access to financial services is a basic necessity that gives a person social and economic empowerment, especially for those who have been excluded for the longest time. For women, especially in rural and remote areas, access to financial services has been a distant dream.
Globally, approximately 55 per cent of the total unbanked population are still women. In India, while the financial inclusion of women has significantly increased with 79 per cent of women aged between 15-49 years having a bank account in their name, however, there is still a long way to achieve the goal of financial inclusion
Role of government initiatives
The introduction of Pradhan Mantri Jan Dhan Yojana was pivotal in increasing the number of women with bank accounts. The number of accounts under PMJDY witnessed remarkable growth, increasing from 147.2 million in 2015 to 462.5 million in 2022, of which 55.59 per cent of accounts were held by women. Further, schemes such as direct bank transfers, Pradhan Mantri Jeevan Jyoti Bima Yojana, Pradhan Mantri Suraksha Bima Yojana among others have also helped the inclusion of women.
Moreover, financial literacy initiatives to educate women about financial products, savings, investments, and basic financial management has been instrumental. Microfinance institutions and Self-Help Groups have played a pivotal role in providing financial services to women, particularly in rural areas. These institutions offer small loans to women entrepreneurs, enabling them to start or expand their businesses.
Role of DPIs
Digital public infrastructure, especially UPI, has revolutionised the financial inclusion landscape. The adoption rate of UPI among women has also seen an upward trend. However, there is still a long way to go. Even today, less than 30 per cent of women use UPI. There is a need to significantly increase this number in the coming years with targeted policymaking and technological solutions. The next phase of DPI should be designed in a manner that enables financial inclusion of the underserved women.
Ecosystem Responsibility
There is a need for joint effort from the public and private sector to run financial literacy and awareness programmes to increase adoption of financial services among women. The private sector’s ability to innovate on top of the infrastructure provided by several DPIs puts them in a critical position to curate a set of products that targets gender-based financial inclusion.
Conclusion
Financial inclusion of women has seen remarkable growth year on year, however, as we usher into the next phase, the government should target the financial inclusion of women from rural and remote areas.
Further, financial institutions may adopt gender-sensitive lending practices and provide products designed for women to create an inclusive ecosystem where women can be financially empowered. With the public and private sectors’ continuous efforts, women will increasingly become financially empowered.
The writer Member of Parliament, Lok Sabha