What is the story about?
Even as India nears universal bank account ownership, women continue to face deep and persistent barriers to meaningful financial inclusion, the Inclusive Finance India Report 2025 by ACCESS Development Services has found.
While nearly 90% of Indian women now have a bank account—largely driven by PM Jan Dhan Yojana and digital government transfers—the report shows that many of these accounts remain inactive, women’s savings and digital usage lag sharply behind men, and women-led MSMEs face a financing gap of nearly 35%, almost double that of male-owned enterprises, raising concerns over women’s financial agency, autonomy and participation in economic growth.
Also Read: How MSME trends indicate a shift in India’s capital market landscape, shows SIDBI–Jocata report
Access without active usage
India has made remarkable progress in bringing women into the banking system. Account ownership among both men and women has risen from 35% in 2011 to 89% in 2024, driven largely by the Pradhan Mantri Jan Dhan Yojana (PMJDY) and digital delivery of government benefits. More than 56% of the 460 million accounts opened under PMJDY belong to women, while the share of adults receiving government-to-person payments digitally rose by 20 percentage points between 2017 and 2024.
However, the report highlighted that access has not translated into usage. Around 17% of PMJDY accounts - nearly 82 million - are inactive, and women are more likely than men to hold such dormant accounts. The gender gap in account inactivity, though reduced, still stands at 7 percentage points in 2024. National Family Health Survey data also shows that more than one in five women with bank accounts do not operate them themselves, raising serious concerns about financial autonomy and control.
The gender divide becomes even sharper when savings and digital financial behaviour are examined. Between 2021 and 2024, formal saving among men doubled from 15% to 31%, while women’s savings rose more slowly from 13% to just 23%, widening the savings gap. Only 30% of women have a debit card, compared with 45% of men, and just 15% of men use mobile money for saving, a figure that falls to less than half for women, reflecting constraints in device ownership and digital access.
Unequal access, unequal outcomes
Women entrepreneurs face even steeper hurdles. The report estimates that women-led micro, small and medium enterprises suffer a financing gap of around 35%, nearly double that of male-owned firms. This credit shortfall restricts business expansion, limits job creation and undermines the contribution of women-run enterprises to economic growth.
Also Read: Gender Gap in India’s Workforce: Women hold 18% of jobs, IT sector leads at 34%
Low financial literacy remains a major roadblock. According to data cited in the report, only 21% of women in India are financially literate, compared with 29% of men. This lack of understanding weakens trust in formal institutions, hampers informed decision-making and discourages the regular use of financial services. These challenges are compounded by limited financial agency, as men in many households continue to control banking and digital transactions.
The report also points to gender gaps within the financial sector itself. Women make up less than a quarter of the workforce in banking, financial services and insurance, and are particularly underrepresented in high-impact, revenue-generating roles such as sales and branch banking. Even in the microfinance sector, which largely serves women clients, women account for only about 12% of staff, limiting women’s voice in product design and delivery.
Policy push still needed
Evidence shows that increasing the number of women at the frontline can significantly improve outcomes. Programmes such as NABARD’s Bank Sakhi initiative, which trains women from self-help groups to work as banking correspondents, have demonstrated that female agents build greater trust, expand digital financial services and increase account usage among women.
To close these gaps, the report calls for a Gender Action Plan to be embedded in India’s National Strategy for Financial Inclusion, with clear targets, monitoring frameworks and gender-disaggregated data. It also recommends that the RBI publish gender-wise financial inclusion indicators, scale up the appointment of female banking correspondents to at least 40%, and encourage financial institutions to design products that respond specifically to women’s needs rather than adapting male-centric offerings.
Despite near-universal account ownership, the report makes clear that financial inclusion for women in India remains incomplete. Without stronger agency, literacy, digital access and targeted policy action, millions of women will remain connected to the banking system in name, but not in practice.
While nearly 90% of Indian women now have a bank account—largely driven by PM Jan Dhan Yojana and digital government transfers—the report shows that many of these accounts remain inactive, women’s savings and digital usage lag sharply behind men, and women-led MSMEs face a financing gap of nearly 35%, almost double that of male-owned enterprises, raising concerns over women’s financial agency, autonomy and participation in economic growth.
Also Read: How MSME trends indicate a shift in India’s capital market landscape, shows SIDBI–Jocata report
Access without active usage
India has made remarkable progress in bringing women into the banking system. Account ownership among both men and women has risen from 35% in 2011 to 89% in 2024, driven largely by the Pradhan Mantri Jan Dhan Yojana (PMJDY) and digital delivery of government benefits. More than 56% of the 460 million accounts opened under PMJDY belong to women, while the share of adults receiving government-to-person payments digitally rose by 20 percentage points between 2017 and 2024.
However, the report highlighted that access has not translated into usage. Around 17% of PMJDY accounts - nearly 82 million - are inactive, and women are more likely than men to hold such dormant accounts. The gender gap in account inactivity, though reduced, still stands at 7 percentage points in 2024. National Family Health Survey data also shows that more than one in five women with bank accounts do not operate them themselves, raising serious concerns about financial autonomy and control.
The gender divide becomes even sharper when savings and digital financial behaviour are examined. Between 2021 and 2024, formal saving among men doubled from 15% to 31%, while women’s savings rose more slowly from 13% to just 23%, widening the savings gap. Only 30% of women have a debit card, compared with 45% of men, and just 15% of men use mobile money for saving, a figure that falls to less than half for women, reflecting constraints in device ownership and digital access.
Unequal access, unequal outcomes
Women entrepreneurs face even steeper hurdles. The report estimates that women-led micro, small and medium enterprises suffer a financing gap of around 35%, nearly double that of male-owned firms. This credit shortfall restricts business expansion, limits job creation and undermines the contribution of women-run enterprises to economic growth.
Also Read: Gender Gap in India’s Workforce: Women hold 18% of jobs, IT sector leads at 34%
Low financial literacy remains a major roadblock. According to data cited in the report, only 21% of women in India are financially literate, compared with 29% of men. This lack of understanding weakens trust in formal institutions, hampers informed decision-making and discourages the regular use of financial services. These challenges are compounded by limited financial agency, as men in many households continue to control banking and digital transactions.
The report also points to gender gaps within the financial sector itself. Women make up less than a quarter of the workforce in banking, financial services and insurance, and are particularly underrepresented in high-impact, revenue-generating roles such as sales and branch banking. Even in the microfinance sector, which largely serves women clients, women account for only about 12% of staff, limiting women’s voice in product design and delivery.
Policy push still needed
Evidence shows that increasing the number of women at the frontline can significantly improve outcomes. Programmes such as NABARD’s Bank Sakhi initiative, which trains women from self-help groups to work as banking correspondents, have demonstrated that female agents build greater trust, expand digital financial services and increase account usage among women.
To close these gaps, the report calls for a Gender Action Plan to be embedded in India’s National Strategy for Financial Inclusion, with clear targets, monitoring frameworks and gender-disaggregated data. It also recommends that the RBI publish gender-wise financial inclusion indicators, scale up the appointment of female banking correspondents to at least 40%, and encourage financial institutions to design products that respond specifically to women’s needs rather than adapting male-centric offerings.
Despite near-universal account ownership, the report makes clear that financial inclusion for women in India remains incomplete. Without stronger agency, literacy, digital access and targeted policy action, millions of women will remain connected to the banking system in name, but not in practice.
