India’s recent prolific advancement in the digital sphere is dramatically reshaping lives, especially those previously relegated to the margins. The Unified Payments Interface (UPI), for instance, processed 9.36 billion transactions worth INR 14.89 trillion in May 2023, with 1.5 billion bank accounts linked to mobile apps and 432 million Jan Dhan accounts promoting financial inclusion. Digital banking infrastructure, powered by the steady proliferation of smartphones, is granting women in rural regions unprecedented control over their financial destinies.
For decades, the distance to the nearest bank, the labyrinth of paperwork and regressive customs had hindered rural women from accessing the benefits of banking. But government initiatives like the Jan Dhan Yojana, Digital Laado, Namo Drone Didi Scheme have played a seminal role in expanding women’s reach to financial services.
As we celebrate women this month, let’s take a look at all the ways digital banking has fueled rural womanpower.
The increasingly ubiquitous smartphone has truly altered the landscape by making finance accessible. With innovative mobile banking apps and digital wallets, women can now receive government subsidies, transfer funds and cultivate savings without ever setting foot in a bank. They now hold the key to their funds in their own hands, quite literally.
Digital banking does not merely grant women access to money — it bestows control. Women can now monitor their own accounts, make independent decisions, and participate in household budgeting without intermediaries.
Digital banking enables women to check their savings, set budgets and plan expenses, fostering a culture of financial planning that may not have been possible before.
- Increase in Women-Led Businesses
With access to small business loans and personal loans through digital platforms and the seamless convenience of payment systems like UPI, women are launching small businesses that sustain both their households and their communities. Many women entrepreneurs in rural areas receive loans through MUDRA Yojana and Stand-Up India Scheme, both of which promote women-led businesses. The Reserve Bank of India also mandates that 7.5% of the total Priority Sector Lending target of banks should go towards Micro, Small, and Medium Enterprises (MSMEs), including women-owned small businesses. The act of earning and managing money independently, once a distant prospect, is becoming an increasingly common reality.
The ascent of digital banking has proven to be a social recalibration. By placing financial agency directly into the hands of women, technology is chipping away at the constraints that have long defined rural life, thus ensuring tremendous progress for the coming decades.
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