Summary of this article
Women own accounts but struggle with regular financial usage.
Digital payment gaps persist due to confidence and device barriers.
Banks must design inclusive products with women-led support systems.
The Reserve Bank of India's Financial Inclusion (FI) Index increased to 64.2 in 2022 from 53.9 in 2021, indicating greater access to banking, insurance, and pension services. According to World Bank's FINDEX 2025, 89 per cent of Indian adults now have a bank account, with 89.2 per cent of the total population of women also hold bank accounts.
But account usage contradicts this. A little over 16 per cent of account holders in India used their accounts not even once last year. This is over twice the global average of 6 per cent. Most of this shortfall is the result of women opening accounts primarily to receive government payments, which remain underutilised for other purposes.
"Creating an account is just the beginning. Unless women are able to use these accounts in a manner that assists them in handling day-to-day expenses, savings and access to credit, the promise of inclusion is incomplete," said Kalpana Ajayan, regional head (South Asia), Women's World Banking.
Digital Payments Gap
The growth of UPI (Unified Payments Interface) has revolutionised transactions across the nation, but women fall behind men when it comes to digital payments. The FINDEX says that usage by women is lagging by 10 to 13 per cent even as they have equal access to accounts. The gaps are even larger in rural areas.
Ajayan noted that this is not solely a technology issue. "Women lack faith in online platforms. Many are afraid of getting things wrong or getting scammed. In several households, even if women have accounts, they are instructed to get the money in cash and hand it over," she added.
Access to a device is another obstacle. The Telecom 2025 survey indicates that although more than 76 per cent of rural women own a mobile phone, fewer than half actually use them; these devices "owned" by women are being used by other family members. Without private ownership, women are reliant on shared devices, curtailing their autonomy and privacy in financial affairs.
Making Accounts Meaningful
Women's World Banking research in India shows that when banks bundle basic savings with micro-insurance, bill payment and small overdraft facilities, women are more likely to transact regularly. So, the focus now should shift from access to meaningful usage.
Ajayan highlighted the need for grassroots support. "Women learn best by being shown how to use accounts in day-to-day environments. Women agents under Jan Dhan Plus solution recorded a 30 per cent increase in average balances purely because users were guided through small transactions and withdrawals," she said.
Behavioural assistance can help as well. Easy reminders via SMS for school fee payments, deposits made with cashback, or savings challenges prompt frequent use. These moves convert sporadic transactions into habits.
Closing the Low-Accessibility Gaps
For women who share devices or lack personal phones, banks and fintechs must adapt to low-access conditions. NPCI's UPI 123PAY, which works on feature phones through IVR and USSD, is one such solution. Assisted banking through BC Sakhis and self-help group leaders can ensure privacy during transactions.
Ajayan emphasised the need for inclusive model designs. "If women feel secure walking to a local service centre or a bank operated by another woman, the whole community reaps the rewards. Banks have to view this as an investment, and not an add-on," she stated.
Relationships with mobile operators to provide subsidised feature phones pre-loaded with financial applications could also close the gap, as is Kenya's Lipa Mdogo Mdogo model.
Government-backed schemes such as Jan Dhan Yojana have already seen crores of women coming into the system, and over Rs 2.1 lakh crore is now deposited in these accounts. Direct benefit transfers have persuaded many to save formally. But usage beyond withdrawals continues to be a challenge.
Banks and fintechs can reshape this by designing products that account for women's realities and backing them through safe community networks. As Ajayan put it, "True financial inclusion is when a woman can use her account with confidence, not just when she has one."
