In recent years, India has witnessed an economic shift driven by the growing focus on financial inclusion, particularly for women. As more women gain access to banking services, credit, and digital payment systems, they actively contribute to the country’s economic landscape. Financial inclusion, defined as access to affordable financial products and services for all individuals, is now a powerful tool to empower women, drive economic growth, and uplift entire communities. In India, this movement has found fertile ground, particularly as digital banking services and mobile technology bridge the gaps traditionally faced by women.
Women’s Financial Inclusion: An Economic Game Changer
Financial inclusion for women goes beyond individual empowerment; it fosters community growth and strengthens the national economy. A 2024 World Bank report highlights that nations with higher rates of female financial inclusion experience higher GDP growth rates, reduced income inequality, and increased resilience against economic shocks.
In India, over 90% of women in rural areas had no access to formal financial services until the last decade, but this number is steadily improving through targeted programs and financial literacy drives. By enabling women to access financial resources, they are more likely to invest in family health, education, and business ventures—all of which contribute to India’s economic growth.
1. Breaking Barriers: Bridging the Gender Gap in Financial Access
The World Economic Forum’s Global Gender Gap Report of 2024 highlighted that nearly 54% of Indian women still face challenges in accessing basic banking services due to social and cultural factors. However, India’s targeted schemes, such as the Pradhan Mantri Jan Dhan Yojana (PMJDY), have played a vital role in improving financial inclusion. PMJDY, a zero-balance savings account program initiated in 2014, has since enabled 250 million women to open bank accounts, with 2024 data showing a 36% increase in women’s account ownership compared to men.
The gender gap in financial access is also narrowing due to increasing digital penetration. In 2024, GSMA reported that around 60% of Indian women now own a smartphone, enabling more women to use digital financial services. According to a study by the National Payments Corporation of India (NPCI), digital transactions by women in rural areas have increased by 22% over the past two years, showing a clear impact of technological inclusion in financial empowerment.
2. Additional Income: Empowering Women through SHGs and Banking Sakhis
Self-Help Groups (SHGs) have become a key tool for empowering rural women in India, providing access to savings, credit, and micro-loans for income-generating activities. As of 2023, over 10 million women were part of SHGs, with 50% using loans to start or expand businesses, such as dairy farming and handicrafts. This has helped improve household incomes and boost local economies. According to NABARD, women in SHGs are also more likely to reinvest earnings into family health and education, further supporting community development.
Banking Sakhis, women trained to facilitate access to financial services, are also playing a critical role in rural areas. By 2024, over 100,000 Banking Sakhis were deployed, helping women open bank accounts and access loans. In Bihar, for example, 1.2 million women were supported by Banking Sakhis, enabling them to invest in small enterprises such as tailoring and food processing. These initiatives are creating sustainable income sources for women, enhancing their financial independence and contributing to rural economic growth.
3. Digital Inclusion: The Smartphone Revolution and Financial Independence
With mobile payments and digital wallets, smartphones have become gateways to financial freedom for women. McKinsey & Company estimates that the economic value generated by closing the gender gap in digital finance could add up to $700 billion to India’s GDP by 2025. Mobile banking services like UPI (Unified Payments Interface) are enabling women in rural and urban areas alike to save, invest, and manage their finances independently.
Digital finance has a substantial impact on women’s lives. According to NPCI, over 30% of UPI transactions in India in 2024 were made by women, an increase of 18% compared to previous years. With such platforms, they are better equipped to start micro-enterprises, manage household expenses, and even support family education, thereby reinforcing financial stability and economic growth.
4. Microfinance Magic: Small Loans, Big Dreams
Microfinance institutions (MFIs) have been instrumental in empowering women entrepreneurs in India by providing loans without the need for collateral. According to the Reserve Bank of India (RBI), women represent about 85% of MFI clients in India. These loans enable women to start small businesses, ranging from handicrafts to food processing, boosting family income and contributing to local economies.
A 2024 International Finance Corporation (IFC) report emphasizes that financially empowered women are more likely to invest in their children’s education and health, creating a ripple effect on overall community well-being. With organizations like SEWA (Self-Employed Women’s Association) and SKS Microfinance driving this movement, microfinance continues to be a pillar of financial inclusion for Indian women.
5. Entrepreneurship Ecosystem: Fueling Business Opportunities
Women-led entrepreneurship is on the rise, with an estimated 20% increase in women-run businesses in 2024, according to NITI Aayog. Financial inclusion initiatives have allowed women to access credit, market information, and business training, leading to increased income and job creation. As women gain greater control over their financial resources, they are more inclined to start businesses that meet local demands and address community needs.
Women-led small businesses have the potential to reshape India’s economic landscape. Programs like the Mudra Yojana, which provides collateral-free loans to small businesses, have seen a surge in female applicants, with women constituting nearly 65% of beneficiaries. These businesses are not only supporting families but are also creating jobs in their communities, thereby fueling local economic growth.
6. Social Empowerment: Uplifting Families and Communities
Financial inclusion for women is intrinsically tied to social empowerment. Women who have access to financial resources tend to make decisions that benefit their families and communities. In India, research by UN Women in 2024 revealed that financially independent women are 33% more likely to send their daughters to school and 25% more likely to invest in healthcare for their families.
The social impact of financial inclusion can be transformative, shifting gender norms and giving women the autonomy to participate in decision-making processes. According to OECD data, countries where more women are financially empowered tend to see reduced domestic violence rates and improved child welfare, showing that financial inclusion fosters not only economic but also social development.
7. Digital Literacy Initiatives: Bridging the Knowledge Gap
For financial inclusion to succeed, digital literacy is crucial. Women, especially in rural areas, often lack knowledge about digital finance. Government and private organizations are now prioritizing digital literacy for women, with programs that educate them on safe and effective ways to use financial tools.
A recent initiative, Digital Saksharta Abhiyan, aims to make 60 million rural Indians digitally literate by 2025, with a significant focus on women. In 2024, 2.4 million women underwent digital literacy training, enabling them to use financial services independently and confidently. Evolute, through its digital and financial inclusion products, supports digital literacy and financial empowerment for women across various regions in India, contributing to a more inclusive economy.
8. Policy Support: Government’s Push for Gender-Inclusive Finance
Indian government policies have been key in promoting financial inclusion among women. Programs such as the Mahila E-haat, an online marketing platform for women entrepreneurs, and Stand-Up India, which provides loans to women, have enabled millions of women to become financially active. As of 2024, over 75% of Stand-Up India loans were sanctioned to women entrepreneurs, highlighting the policy-driven support for female economic empowerment.
The Gender Budgeting initiative, which allocates a portion of government funds specifically for women’s programs, has seen a steady increase in allocation. These policies are crucial for sustaining and expanding financial inclusion for women, especially in underserved areas.
The Evolute Fintech Innovations Advantage in Supporting Financial Inclusion
At Evolute, we are committed to building a resilient and thriving economy through financial inclusion, especially for women across India. Our innovative range of digital payment solutions and financial services is designed to provide equitable access to financial tools, empowering women and supporting the country’s vision of gender equality and economic empowerment. We believe that when women are included in the financial ecosystem, they contribute significantly to economic growth and social progress.
In line with this vision, the Uttar Pradesh government led by its dynamic Chief Minister, Shri Yogi Adityanath, introduced many groundbreaking policies for the financial inclusion of Women in Uttar Pradesh. Evolute Fintech Innovations partnered with the Uttar Pradesh government and through our Leopard MicroATM we empowered women entrepreneurs (banking Sakhis) by equipping them with the technology to bring banking services to underserved, remote areas. This initiative not only is providing women with sustainable income opportunities but also is promoting financial literacy and economic independence, creating a more inclusive and self-sufficient society. By empowering women as banking Sakhis, Evolute Fintech is helping advance the Chief Minister’s goals of gender equality, economic growth, and rural development.
Financial Inclusion for Women is Economic Inclusion for All
In conclusion, financial inclusion for women is not only about providing access to banking but also about transforming lives and economies. Here’s a summary of the key ways in which financial inclusion is empowering women and fueling India’s growth:
- Bridging the Gender Gap: Providing financial access to millions of underserved women.
- Smartphone Revolution: Empowering women with digital finance tools.
- Microfinance Support: Enabling women-led businesses to flourish.
- Entrepreneurship Growth: Increasing female participation in business.
- Social Empowerment: Elevating community well-being and decision-making.
- Digital Literacy: Educating women on financial technology.
- Policy Initiatives: Government schemes fostering gender inclusivity.
Financial inclusion for women represents a transformative opportunity for India to accelerate its economic growth, reduce inequality, and build a sustainable future.
