Why in News
- Despite near-universal Jan Dhan accounts and rise of Direct Benefit Transfer (DBT) schemes, women’s economic agency in India remains incomplete.
- Recent initiatives like Bihar’s Mukhyamantri Mahila Rojgar Yojana (2025) aim to provide seed capital to 75 lakh women for self-employment.
- The issue has policy and socio-political dimensions: cash transfers act as both welfare instruments and electoral strategies.
Relevance
- GS 1 – Social Issues: Women’s empowerment, gender inequality, digital divide.
- GS 2 – Governance: DBT schemes, JAM trinity, policy implementation, and evaluation.
- GS 2 – Social Justice: Access to resources, property rights, social inclusion.
- GS 3 – Economy: Financial inclusion, self-employment, women-led entrepreneurship, impact on household welfare.
Basic Overview
- Goal: Move beyond placing money in women’s accounts to genuine financial empowerment.
- Current Status:
- 56 crore Jan Dhan accounts opened; women hold 55.7%.
- Despite 38 crore RuPay cards issued, women’s usage of debit cards and digital payments lags behind men.
- Challenges: Low digital literacy, limited mobile phone access (19% less than men), patriarchal norms, distance from banks, and lack of privacy.
Key Issues & Barriers
1. Financial Access vs Agency
- Accounts exist but are often dormant or used only to withdraw cash transfers.
- Women rarely control assets, take loans, or make independent financial decisions.
2. Digital Divide
- Women’s low mobile phone ownership restricts access to digital banking.
- Reliance on shared devices erodes privacy, autonomy, and independent decision-making.
3. Socio-Cultural Constraints
- Patriarchal norms often restrict women’s financial participation.
- Social attitudes limit women from leveraging their bank accounts, savings, or credit opportunities.
4. Structural & Policy Gaps
- Less than 10% of banking correspondents are women, reducing trust and accessibility.
- Lack of tailored financial products for women’s informal, seasonal, or sporadic incomes.
- Insufficient financial and digital literacy programs.
Recent Policy Initiatives
- Bihar’s Mukhyamantri Mahila Rojgar Yojana: ₹10,000 seed capital for self-employment, with potential additional ₹2 lakh support.
- Other women-focused DBT programs include:
- Karnataka: Gruha Lakshmi
- West Bengal: Lakshmir Bhandar
- Madhya Pradesh: Ladli Behna
- Telangana: Mahalakshmi
- Programs rely on JAM trinity (Jan Dhan, Aadhaar, Mobile) for direct and transparent delivery.
Path to Economic Empowerment
1. Asset Ownership
- Women must have tangible control over land, property, or business assets to leverage credit and sustain enterprises.
2. Digital & Financial Literacy
- Providing subsidized smartphones, affordable data, and training.
- Establish community-based advisory networks (digital banking sakhis, WhatsApp/UPI groups).
3. Agency-Building
- Beyond receiving money, women should be able to:
- Grow and reinvest funds.
- Engage with markets and participate in new forms of commerce.
- Exercise decision-making in household and community economic matters.
4. Institutional Support
- Co-create financial products reflecting women’s informal and seasonal income patterns.
- Expand female banking agents to enhance trust and access.
Socio-Economic & Political Implications
- Household Welfare: Increased income in a woman’s name improves child and elderly outcomes.
- Social Justice: Strengthens women’s role as economic actors, not just welfare recipients.
- Political Economy: Cash transfer schemes often have electoral significance, influencing political participation and accountability.
- Macro-Level: Empowering women financially can boost entrepreneurship, market participation, and inclusive growth.
