Financial independence is the language of empowerment; every woman should be fluent in it.
Women are everywhere, from defence to aerospace, from highest-earning CEOs to those holding the top positions in the political system; there is barely any field left unexplored by women. However, this journey of growth, as we witness it today, was not linear. If we look at the 2016 figure, SEBI data shows that only 20 per cent of women were financially literate, around 43 per cent of women had bank accounts before 2014, and only one-third of women had access to digital literacy prior to 2014, and the figure is even more dismal for rural women. However, the Modi government recognized the need to integrate the other half i.e. women, in mainstream development programs and thereby launched a series of targeted schemes. There are two such flagship programs that were instrumental in achieving the targets.
Pradhan Mantri Jan Dhan Yojana (PMJDY)
Launched in August 2014, Pradhan Mantri Jan Dhan Yojana completed a decade last year. The scheme has been instrumental in bringing 54.97 cores unbanked into the formal banking system. The scheme aimed at opening bare savings bank deposit accounts with zero cost and no maintenance charges, also subject to eligibility, offering up to 10,000 overdraft facilities to cover expenses. It has been successful in being one of the largest financial inclusion schemes in the world. If we look at females’ participation, 30.6 crore accounts, which is around 66 per cent of the total, are women account holders. Furthermore, 37.60 crore Ruppe Cards were issued with an accidental insurance cover of 2 lakhs, which provided Jan Suraksha or micro-insurance to the needy.
Pradhan Mantri Mudra Yojana (PMMY)
For small businesses, arranging for factors of production, particularly capital, is one of the most daunting tasks. The hardships are further exacerbated if the loan seeker is a woman without any collateral support. Sensing the gap and recognizing the need for it, the government launched PMMY with the aim of providing collateral-free loans to micro, small, and medium enterprises, particularly women. As of November 2024, a total of 1.51 crores of women entrepreneurs with a 61.3 per cent share have raised 87,718 crores out of 2.64 total.
PMMY aligns perfectly with the vision of Aatm Nirbhar Bharat by empowering small businesses and building self-sustaining units in the economy. Working with the intention of breaking big and thriving, the scheme helped unleash the potential of MSMEs in the economy, thereby building both resilience and equality. Small businesses in food processing, handicrafts, textiles, pickle papad and incense stick businesses have enormously benefitted from the schemes and have witnessed considerable growth in their earnings.
Creating Impact: Inclusion and Accessibility
These schemes have facilitated small savings amongst women and facilitated access to credit channelled through bank accounts. It led to the creation of formalized banking systems or, more promptly, the ‘Financialization of Savings’. Additionally, the scheme has helped the government roll on the direct benefit transfer [DBT] program wherein the intended beneficiaries received financial aid and subsidies without intermediaries, thereby reducing the leakages in the system. The scheme addresses the major financial inclusion gaps by opening accounts, mobilizing savings to productive sectors, creating credit history and keeping a better vigil on the worthiness of individuals.
Apart from all this, the schemes proved to be a major step in reducing the mental barriers and instil confidence amongst women to lead a more healthy, secure life, to have a better say in family affairs and, more importantly, to raise the standard of their living as well as that of their children and contribute to economic development through wheels of growth. Including women in government policy has helped create mental shifts and move away from the old pattern of thinking that ‘women are not capable enough to make financial decisions’ to the point that they are capable enough.
Barriers in Creating Impact
Although a significant increase in the percentage of women’s participation in these schemes has been witnessed, many challenges remain at the grassroots level. Barriers to accessing financial services, social mobility constraints, limited financial and digital literacy, and lack of proper identity proof are a few.
Way to Make Schemes More Inclusive
Some of the ways that can be employed by making these two schemes more inclusive is hiring more women business correspondence to expand on the financial inclusion and literacy parts, plus a feedback mechanism can be created where any difficulties concerning them could be resolved. Another way is to create continuous awareness programs through workshops, banners, and posters. Additionally, constantly assessing and re-evaluating the impacts with timely tracking of progress and paradigm policy changes could prove to be beneficial in this regard.
Financial inclusion and access are two very prominent tools in the hands of the government. It holds tremendous potential to create economic and social empowerment. The current progress made in this regard is impressive. The two schemes have been catalysts in changing the landscape of financial inclusion coupled with access to financial resources, which hold the potential for upward movements in economic trajectory.
