India's 90% Bank Accounts for Women Hide Deep Financial Exclusion

Financial Inclusion Gaps Persist for Indian Women

New findings reveal that despite India achieving near-universal bank account coverage for women, deep-seated barriers prevent true financial inclusion. The Inclusive Finance India Report 2025 highlights that while close to 90% of women now possess bank accounts, largely due to initiatives like the Pradhan Mantri Jan Dhan Yojana (PMJDY) and digital government transfers, these accounts often remain inactive.

Usage Lags Behind Ownership

Access to banking has surged, with women's account ownership rising from 35% in 2011 to 89% in 2024. However, usage tells a different story. Around 17% of PMJDY accounts, nearly 82 million, are dormant, with women disproportionately holding these inactive accounts. Furthermore, over one in five women with bank accounts do not operate them independently, signaling a significant lack of financial autonomy.

Savings and Digital Divide Widens

The gender gap in financial behavior is stark. Between 2021 and 2024, formal savings among men nearly doubled to 31%, while women's savings increased more slowly to 23%. Debit card ownership also lags, with only 30% of women possessing one compared to 45% of men. Mobile money usage is similarly skewed, with women utilizing it for savings at less than half the rate of men.

MSMEs and Literacy Roadblocks

Women entrepreneurs face steeper challenges, with women-led micro, small, and medium enterprises (MSMEs) experiencing a financing gap of approximately 35%, nearly double that of male-owned businesses. This credit shortfall hampers growth and job creation. Compounding these issues is low financial literacy, with only 21% of women considered financially literate compared to 29% of men. This lack of knowledge impedes informed decision-making and trust in formal financial services.

Underrepresentation in Finance Sector

The report also points to significant gender disparities within the financial sector itself. Women constitute less than a quarter of the workforce in banking, financial services, and insurance (BFSI), with severe underrepresentation in key revenue-generating roles. Even in the microfinance sector, which primarily serves women, female staff account for only about 12%, limiting women's influence on product design and service delivery.

Policy Recommendations

To address these persistent gaps, the report urges the integration of a Gender Action Plan into India's National Strategy for Financial Inclusion. Key recommendations include the RBI publishing gender-disaggregated financial inclusion indicators, increasing the appointment of female banking correspondents to at least 40%, and encouraging financial institutions to develop products tailored to women's specific needs.