Speeding Progress in Access and Usage

Recent data reflects a significant shift in financial inclusion. The Reserve Bank of India indicates that the Financial Inclusion Index rose from 43.4 in 2017 to 64.2 in 2024, with a notable contribution from women. The Pradhan Mantri Jan Dhan Yojana (PMJDY) program, which began in 2014, has successfully opened over 500 million bank accounts, with women holding 55% of these accounts. By 2024, approximately 250 million women had Jan Dhan accounts, marking this initiative as one of the world’s largest financial inclusion campaigns.

Digital Technology: A Catalyst for Change

The adoption of digital technology has played a crucial role in this evolution. By early 2024, Unified Payments Interface (UPI) transactions reached an astonishing ₹80.79 trillion, growing at a compound annual growth rate of 147%. Women are now responsible for over 30% of these transactions, reflecting an 18% increase compared to previous years. A stark contrast exists when looking back at 2014, where only 43% of women over the age of 15 had bank accounts; this figure soared to 78% by 2024.

Reaching Rural Areas

This transformation isn’t confined to urban areas. A report by the National Payments Corporation of India (NPCI) details a 22% increase in digital transactions among rural women over two years, illustrating that even those outside traditional banking frameworks are gaining access to digital finance.

Empowerment Through Financial Independence

Today, 60% of women in India own smartphones, enhancing the reach of mobile banking and payment solutions, especially in areas lacking physical bank branches. These digital platforms eliminate cumbersome paperwork and the intimidation often associated with in-person banking, thus encouraging women’s participation in financial activities.

For many small business owners, including traders and farmers, digital payments provide direct control over finances. This increased autonomy lessens reliance on male family members, enabling women to save, invest, and manage loans independently. According to McKinsey, closing the gender gap in digital finance could lead to a $700 billion boost in India’s GDP by 2025.

Government Initiatives Supporting Inclusion

A variety of targeted policies and programs have been developed to advance women’s financial inclusion:

• Mudra Yojana: Since its inception, 69% of Mudra microloans have been disbursed to women-led businesses across various sectors.
• Self-Help Groups (SHGs): Over 10 million women participate in SHGs, enabling access to microcredit and collective savings, with many securing loans to start or expand businesses.
• Banking Sakhis: More than 100,000 trained female correspondents assist in rural areas with loan applications, account setups, and subsidy access.
• Stand-Up India: By 2023, 84% of the loans approved under this program were given to women entrepreneurs.
• Gender Budgeting: The Indian government allocated $55.2 billion (8.8% of the budget) for gender-specific programs in the 2025–2026 budget, highlighting the political commitment to these initiatives.

These strategies collectively aim to integrate more women into the workforce, with the women’s work participation rate rising from 22% in 2017-18 to above 40% in 2023-24.

Challenges Ahead

Despite these advancements, structural challenges remain:

• Inactive Accounts: Approximately 32% of women’s bank accounts are inactive, often due to social constraints, a lack of financial literacy, or insufficient engagement with banking products.
• Credit Access: Only 7% of credit for Micro, Small, and Medium Enterprises (MSMEs) goes to women-run businesses, with many entrepreneurs relying on personal savings due to strict loan requirements and bias in lending.
• Digital Divide: Access to reliable internet and smartphones is still lacking for millions, with women entrepreneurs being 34% less likely to use phones for work and 45% less likely to utilize digital tools.

Conclusion

The narrative of financial inclusion in India is increasingly centered around women’s empowerment. The combined impact of Jan Dhan accounts, UPI transactions, SHGs, and microloans is driving a historic change. However, true progress requires not just ownership but effective usage and agency in financial matters.

Success in empowering women economically can yield benefits that extend beyond households, transforming societal structures for future generations while adding significant value to the economy. Addressing financial barriers is thus essential, not just for equality but also for the overall economic stability of India.