Financial Inclusion and the Indian Woman

Abstract

Financial inclusion is aimed at providing banking/financial services to all people in a fair, transparent and equitable manner and at an affordable cost. The Rangarajan Committee (2008) viewed financial inclusion as imperative for inclusive growth and finance. An inclusive financial system facilitates efficient allocation of productive resources and thus can reduce the cost of capital. Leveraging with financial deepening of innovative products and services can make profitable inroads for a broad-based and inclusive financial system. This paper focuses on the need for financial products and services for women. Women face greater challenges in accessing formal finance due to several factors. The relatively low use of financial products by women may increase their vulnerability to income shocks and reduce their ability to invest, save and plan for the future. The relevance of access to financial products and services among women for development, poverty reduction and gender-equality is an issue receiving great attention. Women still do not derive their deserved benefit from institutional credit and capital flows. Women’s financial inclusion can make an important contribution to women’s economic empowerment. Improved financial inclusion and financial access for women, designed according to their needs, increases their opportunities to contribute to economic growth and better access to health and educational services. Women’s financial inclusion also has a significant impact on sustainable development. Designing financial literacy campaigns can help in bringing gender-sensitive information about financial markets, products and services in capital and money markets etc. Women leadership models can also strengthen associations of women with financial institutions. This paper tries to explain the causes for relatively less use of financial products and services of women and how they can be brought under the umbrella of financial inclusion for inclusive growth and sustainable development.