India has made major progress in bringing women into the formal banking system, but having a bank account does not always mean women have control over their money. The next challenge for financial inclusion is ensuring that women can actually use their accounts, access credit and make independent financial decisions.
The Pradhan Mantri Jan Dhan Yojana, launched in 2014, played an important role in reducing the gender gap in bank ownership. As of August 12, 2026, nearly 590 million people were enrolled in the scheme, with women making up more than 56% of beneficiaries. Among the poorest 20% of the population, 89% of women had bank accounts in 2023, compared with 94% of men.
However, account ownership and active financial participation remain different issues. According to an Observer Research Foundation paper cited in the report, women own around one-third of bank accounts but hold only about one-fifth of total bank deposits. Around one-third of women's accounts are also inactive, while India has one of the world's widest gender gaps in account inactivity.
Access to formal credit presents another challenge. A NITI Aayog report published in April 2026 found that women account for nearly 26% of formal credit. Although women are increasingly moving beyond small loans towards borrowing for businesses and other purposes, their overall participation remains limited.
Experts and researchers point to several reasons behind this gap. Limited employment opportunities and lower ownership of assets reduce women's financial independence. Only about 32% of married women are employed, and some women who work do not receive direct payment for their labour. Property ownership is also lower among women, making it harder for them to provide collateral when seeking larger loans.
Control over income is another major concern. Among women who earn money, only 18% reportedly decide independently how their income is spent, while 67% make such decisions jointly with their husbands.
Digital access adds to the problem. Only about 54% of women own a mobile phone, with the figure falling to 47% in rural areas. This can restrict their ability to use digital banking services, particularly when phones and financial decisions are controlled by other members of the household.
The data suggests that India's financial inclusion journey has moved beyond simply opening accounts. The bigger question now is whether women can use those accounts to improve their economic position.
True financial inclusion, therefore, will depend not only on access to banks and credit but also on women's ability to make financial decisions, build assets and use money to improve their own lives and those of their families.
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