Financial literacy for women in India- Financial literacy is key

Source: The post financial literacy important for women in India has been created, based on the article “Financial literacy is key: Beti bachao, Vitt sikhao” published in “Live mints” on 8th March 2024.

UPSC Syllabus Topic: GS Paper 1-Society-Social empowerment

News: The article discusses the importance of financial literacy for women in India. It highlights progress in women’s education and survival rates since 1947, but stresses the need for women to learn about finance. It suggests financial knowledge is crucial for true empowerment and mentions government initiatives supporting this goal.

What is the current status of women’s empowerment in India?

1. Since 1947, there’s been significant progress in reducing female infant mortality and increasing women’s literacy. Female infant mortality dropped from 213 to 31 deaths per 1,000 live births between 1972 and 2021.
2. Female literacy rose from 54.2% in 2001 to 65.5% in 2011.

Why is financial literacy important for women?

Essential for True Empowerment: Financial literacy is viewed as a crucial step beyond basic education for women’s empowerment, enabling them to make informed financial decisions.

Gap in Financial Knowledge: Women lag behind men in both financial knowledge and access to financial products, highlighting the need for focused financial education.

How can financial empowerment be achieved?

Women-Specific Banking Services: Initiatives like women-only bank branches introduced by nationalized banks can create a more accessible financial environment for women.

Leveraging Digitalization: The digitization of the economy allows women to access financial products from home, promoting convenience and wider reach.

Government-led Programs: The Jan Dhan Yojana, which makes direct cash transfers to women’s bank accounts, helps in enhancing financial inclusion among women.

Supporting Women Entrepreneurs: Platforms like the Open Network for Digital Commerce help women entrepreneurs market their products online, boosting their financial independence and skills.

Self-Help Groups: Models like Kerala’s Kudumbashree demonstrate the effectiveness of self-help groups in empowering women financially.

Way forward

The way forward involves integrating financial education into existing programs like ‘Beti bachao, Beti padhao’. This will ensure women not only receive education but also learn vital financial management skills, crucial for their complete empowerment and equal participation in India’s development.

Question for practice:

Discuss the strategies and initiatives aimed at promoting financial empowerment among women in India.