Gendered Welfare Politics and Women’s Cash Transfers India

The politics of welfare in India increasingly focuses on women through direct cash transfer schemes. Recently, Bihar launched the Mukhyamantri Mahila Rojgar Yojana, providing ₹10,000 to 75 lakh women as seed capital for self-employment. This is part of a wider trend where states like Karnataka, West Bengal, Madhya Pradesh, and Telangana have introduced women-centred cash transfer programmes. These initiatives leverage India’s Direct Benefit Transfer (DBT) system, built on the JAM trinity – Jan Dhan accounts, Aadhaar, and mobile phones. This infrastructure enables targeted and transparent delivery of benefits.

Direct Benefit Transfers and Women’s Financial Inclusion

India has seen a surge in women’s bank account ownership under the Pradhan Mantri Jan Dhan Yojana. By August 2025, over 56 crore accounts were opened, with women holding 55.7%. The World Bank’s Global Findex Database 2025 reports 89% of Indian women have bank accounts, matching developed nations and exceeding the global average of 77%. Many women opened accounts primarily to receive government benefits or wages. This marks a milestone recognising women as economic actors with formal financial identities.

Challenges in Translating Access into Agency

Despite high account ownership, about 20% of women’s accounts remain dormant. Barriers include insufficient funds, low perceived need, and discomfort with formal banking. Rural and semi-urban women face additional challenges like distance from banks and digital exclusion. Most women use accounts only to withdraw cash transfers. Usage for savings, credit, or digital payments remains low. Although 38 crore RuPay cards have been issued and UPI transactions increased drastically, women’s digital payment use lags behind men’s due to patriarchal norms and limited digital access.

Digital Divide and Social Barriers

Women are 19% less likely to own mobile phones, essential for digital banking. Costs, privacy concerns, fear of cyber fraud, and social norms restrict phone ownership. Many women rely on shared phones, limiting independent access to accounts. Financial and digital literacy gaps persist. Over two-thirds of women depend on male relatives for financial transactions. These factors hinder the transformation from financial access to real economic agency.

Pathways to Women’s Economic Empowerment

Cash transfers alone cannot ensure empowerment. Long-term support is vital. Secure property rights and joint land titles give women asset control, enabling credit access and market participation. Strengthening the ‘mobile’ pillar through subsidised smartphones and affordable data plans is crucial. Banks, fintech firms, and mobile operators must design products suited to women’s informal incomes and caregiving roles. Community networks, such as digital banking sakhis and secure WhatsApp or UPI groups, can build trust and confidence. Increasing female banking agents, currently under 10% of 1.3 million correspondents, will improve outreach. Real empowerment combines access with agency, allowing women to control, grow, and sustain their financial resources.

Questions for UPSC:

1. Point out the challenges faced by women in achieving financial inclusion in rural India and suggest measures to overcome them.
2. Critically analyse the role of Direct Benefit Transfer (DBT) in enhancing women’s economic empowerment in India with suitable examples.
3. Estimate the impact of digital divide on women’s financial agency and how mobile technology can bridge this gap.
4. Underline the importance of property rights and asset ownership for women’s economic participation and empowerment in India.

Answer Hints:

1. Point out the challenges faced by women in achieving financial inclusion in rural India and suggest measures to overcome them.

1. High dormancy of women’s bank accounts due to insufficient funds and low perceived need.
2. Limited physical access to bank branches in rural and semi-urban areas.
3. Digital divide – low mobile phone ownership (19% less than men) restricts digital banking access.
4. Patriarchal norms and social barriers limit women’s independent financial decision-making.
5. Financial and digital illiteracy leading to dependence on male relatives for transactions.
6. Measures – subsidised smartphones and affordable data, financial literacy programs, more female banking agents, community support groups, and improved banking infrastructure in rural areas.

2. Critically analyse the role of Direct Benefit Transfer (DBT) in enhancing women’s economic empowerment in India with suitable examples.

1. DBT enables direct cash transfers to women, increasing visible control over resources (e.g., Bihar’s Mukhyamantri Mahila Rojgar Yojana).
2. Improves formal financial identity through Jan Dhan accounts, with women holding 55.7% of accounts.
3. Evidence shows income in women’s names enhances their say in household decisions and benefits children and elderly.
4. However, many accounts remain dormant or used only for cash withdrawal, limiting full empowerment.
5. Challenges include digital exclusion, patriarchal norms, and limited use of savings, credit, or digital payments.
6. DBT is a strong foundation but needs complementary support (financial literacy, asset ownership) for genuine empowerment.

3. Estimate the impact of digital divide on women’s financial agency and how mobile technology can bridge this gap.

1. Digital divide leads to low usage of digital payments and banking services despite high account ownership.
2. Women are 19% less likely to own mobile phones, restricting independent access to financial information and transactions.
3. Shared phone usage compromises privacy and autonomy in financial dealings.
4. Costs of phones/data, fear of cyber fraud, and social norms further limit mobile ownership.
5. Bridging gap requires subsidised smartphones, affordable data plans, and digital literacy initiatives tailored to women.
6. Community-based digital support groups and increased female banking agents can enhance trust and usage.

4. Underline the importance of property rights and asset ownership for women’s economic participation and empowerment in India.

1. Secure property rights provide women tangible control over assets, crucial for economic agency.
2. Ownership enables access to credit and participation in markets and commerce.
3. Joint land titles strengthen women’s bargaining power within households and communities.
4. Asset control reduces dependency and enhances ability to sustain and grow financial resources.
5. Without asset ownership, cash transfers alone cannot translate into long-term empowerment.
6. Policy focus on legal reforms and awareness to ensure women’s property rights is essential for inclusive development.