Financial Inclusion of Women in Business through Microenterprises

Abstract

There is a significant gender gap in inheritance, and fewer women have the assets necessary to get a loan with collateral. A woman may not be able to visit a traditional lender because of cultural barriers such as the gender pay gap in the home, fear of physical harm, or a lack of transportation options. To ensure that all Indian citizens have access to basic financial services, the government of India introduced the Pradhan Mantri Jan Dhan Dhan Yojana (PMJDY) in 2014. The program's goal is to provide those who are "financially excluded" access to services such savings accounts, loans depending on need, a remittances facilities, insurance, and retirement plans. Since then, more than 460 million bank accounts, 67% of which are in rural and semi-urban regions, and 56% of which are held by women, have been established, according to statistics from the Ministry of Finance. Yet, in India, approximately 20% of women still do not have their own bank account. Those who do have bank accounts often don't utilize them consistently and still can't get their hands on the savings and credit they need.

"financial inclusión is the procedure of guaranteeing access to banking services and promptly providing sufficient credit when it is needed by disadvantaged groups including such backward classes and reduced groups at an affordable price," the Reserve Bank of India said in its National Strategy Financial Inclusion (2019-2024). While financial inclusion is seen as a vital driver of economic development and poverty reduction, it is important that these gaps be closed. It guarantees that everyone, wherever can get competent, inexpensive, and accountable financial services.