International Women’s Day: How financial literacy can empower women in India

India is now the third-largest economy in the world. While our country has become an economic powerhouse, the awareness about finance and money has still not percolated some demographic groups.

According to the Humanity Welfare Council, 80 per cent of women in India struggle with financial literacy, and around 62 per cent of Indian women do not own bank accounts or have limited access to banking services. The statistic presents a stark picture of the dismal levels of financial literacy and freedom among Indian women. If India has to reach the next level of economic growth, women need to play a pivotal part in the same, for which they need to be financially empowered.

Women’s role in society – the need for a paradigm shift
The cultural stereotypes that have prevailed in India have traditionally relegated women to the role of homemakers. In turn, it has rendered them generally indifferent to matters of finance. However, increasingly, women are breaking stereotypes and moving beyond the confines of our homes to achieve success in various fields.

The modern woman has begun to unlock her true potential and is dominating every sphere of life, including business, politics, sports, entertainment, literature, and technology. Women, in general, are creating a more evolved ecosystem for all of us. Financial literacy then becomes essential to enable them to navigate the challenges.

The barriers and solutions to improve financial literacy
While society’s outlook toward women acquiring financial awareness is improving, the changes seem to be more visible in urban locations. In rural and semi-urban areas, where overall literacy is low there is resistance to women being made financially literate. Consequently, women are denied access to credible resources for financial education.

Various government schemes focus on supporting women to overcome societal challenges. Self-help groups, and development programmes, such as FLCC (Financial Literacy and Credit Counselling Centres), National Center for Financial Education (NCFE), etc., continue to develop and disseminate financial literacy resources through relevant projects and campaigns. In addition, initiatives such as Pradhan Mantri Jan-Dhan, and ‘Beti Bachao, Beti Padhao’ have added to the effectiveness of welfare programmes focused on women empowerment.

The growing significance of financial literacy
Financial literacy arms women to make independent decisions. A financially literate woman often takes more informed and confident life decisions. Financially literate women can therefore deal with rising expenses and inflation. There are several advantages:

It prepares them for emergencies.
-Children are often closer to their mothers. A financially literate mother/woman can motivate her children to stay money-wise.
-Often women are responsible for managing the day-to-day expenses of the household. Thus, it is helpful for them to know how best to use the money.
-Moreover, having an independent financial kitty supports women even after the male member’s demise.

While the world around us is shedding stereotypes and eliminating negative ideas and perceptions to bring more gender equity, women continue to face challenges. More needs to be done to empower women and girls in our society. That will propel them to play a meaningful role in India’s economic success. Financial literacy will help them break the barriers and focus on their personal success.

(Dr Rashmi Saluja is Executive Chairperson at Religare Enterprises)