FINANCIAL INCLUSION IN INDIA: AN OVERVIEW

Abstract

Financial inclusion has been advocated as a tool to alleviate poverty in developing nations, particularly focusing on boosting the economic resilience of low-income households, particularly women, by enabling them to better manage financial uncertainties, generate income, access vital financial services, and maintain basic living standards. The goal of financial inclusion is to empower individuals economically by facilitating their entry to and utilization of official financial services. Despite numerous global initiatives, progress in achieving financial inclusion for women has been limited over the past decade. Emerging challenges such as the COVID-19 pandemic threaten to reverse some of the gains made, resulting in continued financial exclusion and increased vulnerability for women compared to men. This study aims to provide insights into the present state of financial inclusion for both men and women in India, analyzing the extent of access to and usage of formal financial services by gender. The research relies on secondary data obtained from the World Bank's databases. The results indicate a decrease in the gender disparity in access to financial services in India, diminishing from 20 percentage points in 2014 to no difference in 2021.However, full gender equality in financial inclusion remains elusive, as disparities persist in active accounts, digital transactions, savings, and borrowing activities, with males exhibiting higher participation rates than females.