NEW DELHI: India is drawing up the next version of its financial inclusion strategy, which will focus on empowering female entrepreneurs and expanding women’s participation in flagship schemes such as PM SVANidhi, said officials.
Banks and insurance firms will launch campaigns and leverage digital banking units (DBUs) to enhance outreach, they said, adding that a roadmap with quarterly targets is also being discussed.
“There will be a comprehensive strategy that revolves around providing avenues of credit, mentoring, protection through insurance coverage and financial literacy to further empower and nurture women entrepreneurs,” said one of the officials, who did not wish to be identified.
In the interim budget for 2024-25, finance minister Nirmala Sitharaman had increased the target for the ‘Lakhpati Didi’ scheme to 30 million from the existing 20 million. The scheme aims to train women’s self-help groups to earn a sustainable income of at least Rs 1 lakh per annum by setting up micro-enterprises within their villages.
Another official said that while banks will continue to identify unbanked adults and open their accounts, there will be more focus on bringing down the number of inoperative accounts. “We will ensure that beneficiaries under various flagship schemes are on board digitally and further scale up their digital payments. We expect the DBUs to play a pivotal role in this,” he said.
Banks and insurers will also run special campaigns and ensure availability of simple and standardised documents for loan applications and insurance policies. Experts say that financial training and coaching programmes will play a pivotal role in driving financial inclusion for women.
“In addition to formal education, fostering a sense of community among women investors is crucial. This community-based approach makes money less intimidating and fosters an environment where women can thrive financially,” said Priyanka Bhatia, co-founder, Women On Wealth, a firm which has provided financial education to around 5,000 women.
Kezya De Braganca, founder of construction tech startup, Bettapay, which onboards and provides payment solutions for informal construction workers, said, “Digital payments have emerged as the most promising pathway to financial inclusion and can serve as a powerful ramp-on to other formal financial products like credit – an area where women have traditionally had limited access.”
