For centuries, women's rights and their unique challenges had been overlooked in the domain of human rights globally. Yet, women have consistently advocated and upheld their rights. From securing the right to education to voting and work. However, some challenges like financial inclusion still exist in the modern world. In today's digital age, financial inclusion is a key factor in ensuring women’s empowerment. As per the World Economic Forum, around 780 million women still lack access to financial services globally. However, the advent of digital finance has the power to change that narrative, and with the government's concerted efforts and support, this transformation is unfolding in real time in India.

Women’s Empowerment through Digital Finance

Since the founding of the United Nations, gender equality has been a core pillar of human rights.

Ensuring that women can fully participate in economic, social, and political life requires an understanding of the underlying structures that shape access to opportunities.

Sustainable Development Goal 5 (SDG 5) calls for gender equality and women’s empowerment across all spheres of life, where financial independence is an essential component. The ability to control financial resources, make independent decisions, and invest in education, healthcare, and entrepreneurship is essential for women to break cycles of poverty and dependence.

SDG 5 aims to end discrimination, enhance women’s economic participation, and ensure equal opportunities. In this context, digital finance is an enabler, providing women with access to financial tools that were previously out of reach. It removes the traditional barriers of mobility, documentation, and societal constraints by offering instant, secure, and remote financial transactions. Women's economic empowerment is especially important because they reinvest 90% of their income into their families and communities, fostering broader socio-economic growth.

India’s Journey to Women’s Financial Inclusion

India has made remarkable progress in financial inclusion through initiatives such as the JAM (Jan Dhan-Aadhaar-Mobile) Trinity and Unified Payments Interface (UPI). The World Bank recognizes that India has rapidly met its financial inclusion targets within six years, showing progress that would have taken nearly five decades without the advanced Digital Public Infrastructure.

India has empowered more than a staggering 500 million women with formal banking access through the Pradhan Mantri Jan Dhan Yojana (PMJDY) and participation in digital finance continues to expand with seamless access to robust tools like UPI payments.

Women are now leading the way in adopting and promoting awareness about the benefits of digital finance. This is being made possible through the comprehensive support provided by the government in close collaboration with NGOs, and financial service providers who are creating awareness campaigns, developing educational programs, and designing new products that are both intuitive and secure. Tailoring solutions to the unique needs of women has the power to drive meaningful change, turning digital finance into a tool of empowerment.

As India pushes for greater financial inclusion, it's important to remember that empowering women through digital finance is not just an economic necessity; it is a catalyst for broader social change. When women have the tools, knowledge, and confidence to adopt and use digital finance tools, the country is investing in a more equitable and prosperous future for all.

Financial Independence Beyond Banks

Financial equality is more than just access to a bank account, it is the foundation of gender equity. When women have control over their finances, they invest in health, education, and businesses, driving progress not just for themselves but for entire communities.

Below are four remarkable initiatives that are paving the way for financial inclusion by ensuring women's active participation in the economy.

Let us take a closer look at how these initiatives are creating new opportunities for millions of women, encouraging entrepreneurship, security, and financial resilience.

A Decade of Financial Inclusion through Pradhan Mantri Jan Dhan Yojana (PMJDY)

Launched in August 2014, the PMJDY has brought over 500 million people into the banking system, and more than 55% of these accounts belong to women. No longer dependent on intermediaries, women now receive government benefits directly, save for their families, and are in charge of their finances. This simple access to banking is opening doors to credit, digital transactions, and economic independence. With its integrated approach,

PMJDY has laid a strong foundation for inclusive economic growth, ensuring gender equality in financial access.

Learn more about PMJDY.

Pradhan Mantri Mudra Yojana (PMMY)

India has seen a remarkable rise in women’s workforce participation, with the Work Participation Rate (WPR) increasing from 22% in 2017-18 to above 40% in 2023-24. Recognizing this, the government has introduced several initiatives to boost entrepreneurship, employment, and financial inclusion. Under the MUDRA Scheme, 69% of microloans have been sanctioned to women-led enterprises, fueling businesses in tailoring, dairy farming, transportation, food stalls, and retail.

As financial access grows, so does decision-making power. Women’s participation in household financial decisions has risen from 84% in 2015 to 88.7% in 2020. It is well-known that women's financial independence is of crucial importance to building a more resilient and inclusive economy.

Learn more about PMMY.

UPI For Her Initiative

The UPI for Her initiative, a collaboration between the National Payments Corporation of India (NPCI) and Women’s World Banking (WWB), is working to integrate more women into India’s thriving digital finance ecosystem. Supported by our Foundation, this initiative partners with key players to test solutions, drive awareness, and create scalable models that encourage more women to embrace digital transactions.

According to the Reserve Bank of India’s Financial Inclusion Index, financial inclusion across the country grew to a whopping 64.2 in March 2024, up from 43.4 in 2017. UPI transactions have surged too, growing at an astounding 147% CAGR, to reach INR 80.79 trillion in early 2024. Together, these shifts are enabling women’s greater participation in household finances.

First full report of UPI For Her Initiative

Women’s World Banking

For 45 years, Women’s World Banking, a global NGO, has been empowering women across Africa, Latin America, Southeast Asia, and South Asia by ensuring better access to financial services and products. The organization works to make finance truly work for women through financial literacy programs, gender-focused banking solutions, and advocacy efforts.

Women’s World Banking has explored the profound impact financial access has on women’s lives through a framework that identifies how financial inclusion transforms them through material, cognitive, relational, and perceptual change.

Read the full story here