Gender equality is one of the critical challenges which needs to be solved and is one of the pressing issues across the nations and India is not excluded from that. The positive part of this thesis is that the government and authorities have acknowledged that and are bringing several things that will allow women to stand at an equal level with the opposite gender.

Various programs across the industry specifically cater to the needs of women, from giving them a bank account, credits, insurance, and other payment options that will include them fully under the legal banking system.

In this blog, we will see how financial inclusion plans help improve women’s lifestyles and economic prowess in society.

The Emergence of Group Lending

The popular theme in the world for women’s lending in villages and other rural parts is group lending. A bank or a microfinance entity comes to a group of women and lends some money to the group, where all the members are included, and the loan is sanctioned together to the group.

Here, one person doesn’t need to bear the pressure of the loan, and the risk gets distributed as the loan amount is divided among the members. The banks now hire loan agents who can find such a group and amplify their entrepreneurial venture, and through that, they can start making revenue and generate an income source from themselves.

Challenges Which Are Still Prevailing for Financial Inclusion

Multiple challenges are still there in the plan of doing financial inclusion for women in a country like India. Therefore, the microfinance industry and the Government of India need to overcome these obstacles to bring women into the financial wheel of the country.

.  Low Access to Technology and ICT

The first challenge that women in rural areas face is the lack of technology and guidance that can equip them with modern banking methods. Traditional banks face a hindrance because they can’t connect them with smartphones and other tech products.

The rise of smartphones among women, even in rural areas, is enabling banks and NBFCs to cater to that population and bring them under their financial wing.

. Illiteracy Barrier Against Women

The next problem is the illiteracy barrier, which is prominent in the rural segment of the country. Many women are still not able to engage in the traditional financial systems as they are not equipped with signing documents.

In recent years, we have witnessed a lot of women’s engagement in many parts of India. Basic educational activities have been taken up by NGOs and government authorities who are willing to fill the gaps in society so that they can introduce banking facilities for women in the country.

. Women are not Financially Aware

Another important aspect that needs to be solved before launching any financial inclusion program is the education of financial literacy. Traditionally, the male counterpart of the family brought money into the family, which kept the women away from financing methods.

In this age of equal opportunities for both genders, it’s important to understand that women know about the basics of banking and, therefore, can make financial decisions for themselves and their families.

The Prominent Initiatives Taken By the GOI

There are some of the schemes which have been taken to include women in the financial growth of the country.

. SHG Programs by the Banks

The first program that the governments have launched with the help of the public and private sector banks is the guidance of providing funds to such projects or ventures of women where many people are coming together to achieve a single objective.

For example, with the finance DSA app or with the help of the agents, one can take the help of microfinance banks and they can provide loans to such SHGs. One of the core benefits of the program is that it brings women under the financial paradigm, and for the first time, they are making decisions.

. PMJDY For Financial Inclusion of Women

Prime Minister Jan Dhan Yojna allows a woman to have bank accounts and separate access to credit. Many such plans are there where one can get home loans at lower interest when it’s taken in the name of a woman.

These are some of the core objectives which has been taken to include in the financial paradigm of the country.