India is going through a significant financial transition. Women had restricted access to savings, loans, and investment tools for many years due to their exclusion from formal financial systems. But these days, mobile technology, targeted government initiatives, and digital banking are gradually changing this narrative.
In addition to opening accounts, women are actively utilising financial products, which is changing households, businesses, and the overall economy.
Quick development in usage and access
Hard numbers show the shift. The Reserve Bank of India reports that the nation’s Financial Inclusion Index increased from 43.4 in 2017 to 64.2 in 2024. Women are largely responsible for this advancement. Since 2014, the Pradhan Mantri Jan Dhan Yojana (PMJDY) alone has opened over 500 million accounts, of which 55% are held by women. Almost 250 million women had Jan Dhan accounts by 2024, making it one of the biggest global inclusion campaigns.
Adoption of digital technology is equally remarkable. In early 2024, UPI transactions reached ₹80.79 trillion, growing at a compound annual growth rate of 147%. More than 30% of these transactions are now carried out by women, an 18% increase from prior years. Only 43% of Indian women over 15 had a bank account in 2014, a global comparison that highlights the extent of this shift. That percentage was 78% by 2024.
This goes beyond urban development. According to an NPCI study, rural women’s digital transactions increased by 22% in just two years, indicating that even those who are not served by traditional banking are now able to access digital finance.
Digital technology’s function
This revolution is now largely made possible by technology. Mobile banking and payments are growing quickly in India, where 60% of women currently own smartphones. In places where bank branches are still few, remote access is essential. Digital platforms lessen the paperwork, intimidation, and travel time that deter women from interacting with banks.
Digital payments give many small traders, dairy farmers, and tailors direct control over their revenue. As a result, women are less dependent on male family members and are able to save, invest, and pay back loans on their own. The stakes are high economically. According to a McKinsey study, reducing the gender gap in digital finance could boost India’s GDP by $700 billion by 2025.
Initiatives from the government and policy
Targeted policies and programs support India’s efforts to promote financial inclusion.
- Mudra Yojana:Women-led companies in retail, dairy, and small-scale services have received 69% of Mudra microloans since the program’s inception.
- Self-Help Groups (SHGs): More than 10 million women participate in SHGs, which allow them to access microcredit and pool savings. Half had taken out loans to launch or grow their businesses by 2023.
- Banking Sakhis: Today, over 100,000 trained female correspondents work in rural areas, assisting people with loan applications, account opening, and subsidy access.
- Stand-Up India: Women entrepreneurs received 84% of the approved loans under this program by 2023.
- Gender Budgeting: To demonstrate political intent, India set aside $55.2 billion (8.8% of the budget) for gender-specific programs in the 2025–2026 budget.
When taken as a whole, these programs are encouraging more women to enter the workforce. Thanks in part to easier access to formal finance and credit, India’s women’s work participation rate increased from 22% in 2017–18 to over 40% in 2023–24.
Sturdy obstacles
Even with the improvements, there are still structural issues.
First, ownership is more common than account usage. Due to social constraints, ignorance, or a lack of financial literacy, nearly 32% of women’s bank accounts are still inactive. In addition, women are 9% less likely than men to actively transact and 12% less likely to open accounts over the phone.
The second bottleneck is access to credit. Only 7% of MSME credit goes to women, whereas 79% of women-owned businesses are self-financed. Many prospective business owners are excluded by collateral requirements, gender bias in lending, and inadequate documentation. Growth is restricted by the fact that available loans are frequently limited to modest sums.
Lastly, there is still a digital divide. Millions of women still do not have access to smartphones or dependable internet. Compared to men, women micro-entrepreneurs are 34% less likely to use phones for work-related purposes and 45% less likely to use digital tools for a variety of purposes.
Conclusion
The story of financial inclusion in India is becoming more and more about women. Women are joining the financial mainstream in previously unheard-of numbers through Jan Dhan accounts, UPI transactions, SHGs, and microloans. Both the gaps and the progress are quantifiable. Use must follow ownership, and agency must follow access.
The benefits will go well beyond individual households if India is successful. Financial empowerment for women has the potential to transform social structures for future generations and boost the economy by hundreds of billions. Therefore, removing financial barriers is not only about equality; it is also about safeguarding India’s economic future.
Chakravarthy V., Cofounder & Executive Director, Prime Wealth Finserv Pvt. Ltd.
