Welfare politics in India is increasingly gendered, and cash transfers are emerging as a tool of social policy as well as electoral strategy. Just weeks before the assembly elections, the Bihar government launched the Mukhyamantri Mahila Rojgar Yojana – a transfer of ₹10,000 to ₹75,000,000,000 as seed capital for self-employment. The aim is to help them start or expand small businesses with additional support for successful businesses up to ₹2,000.
This joins the list of cash transfer schemes targeting women such as Gruha Lakshmi of Karnataka, Lakshmir Bhandar of West Bengal, Ladli Behna Yojana of Madhya Pradesh and Mahalakshmi of Telangana. These are powered by India’s Direct Benefit Transfer (DBT) architecture anchored on the “JAM trinity” of Jan Dhan, Aadhaar and mobile accounts. This infrastructure enables targeted delivery and transparency.
As of August 2025, more than 56 million Pradhan Mantri Jan Dhan Yojana accounts have been opened, with 55.7% owned by women. According to the World Bank’s Findex 2025 global database, 54% of Indian women said they opened their first bank account primarily to receive government benefits or wages. With 89% of Indian women now holding a bank account – on par with developed countries and well above the global average of 77% – India has reached a remarkable milestone in recognizing women as economic actors with a formal financial identity. The graph below shows the proportion of women who own bank accounts.
At the heart of this progress is a critical question: can direct cash empower women as economic agents rather than just welfare recipients? DBT programs have been shown to increase women’s visible control over resources. Research shows that income in a woman’s name increases her say in household decisions and improves outcomes for children and the elderly. Therefore, schemes like Bihar’s may represent the first formal recognition of women’s economic identity.
Beneath the impressive numbers, however, the story is more complex. Despite JAM’s push leading to near-universal account ownership by women, about 20% remain inactive due to insufficient funds, low perceived need, or discomfort with engaging in formal banking. In rural and semi-urban areas, distance from bank branches and the digital divide exacerbate this disengagement.
In addition, a large number of women use their accounts primarily to withdraw cash transfers – usage for savings, borrowing or payments remains low. The chart below shows women’s involvement in financial activities using bank accounts (%)
Although 38 million RuPay cards (which are free for Jan Dhan accounts) have been issued and UPI transactions have grown from $2 million in FY17 to $18,600 million in FY25, women’s use of debit cards and digital payments still lags behind men.
In addition to patriarchal norms, low levels of digital access have prevented the proliferation of bank accounts from translating into permanent savings, credit or active digital transactions for women. Women are 19% less likely to own mobile phones (according to the GSMA), which are needed to access account and financial information. Data from the Findex survey shows that the cost of phones and data, lack of privacy, fear of cyber fraud and social norms prevent women from owning mobile phones.
Shared phone access for large numbers of women further limits independent digital banking. Financial and digital literacy remain significant barriers. In fact, more than two-thirds of Indian women still rely on male relatives for financial transactions. The graph below shows mobile access and its use for financial transactions among women
India’s leap from access to agency for women therefore remains incomplete. To become real tools of economic empowerment, programs like Bihar’s Rojgar Yojana must go beyond simply putting money in women’s bank accounts. Beneficiaries need additional long-term support.
Most importantly, building a true financial agency will require women to have control over property by providing them with secured property rights and communal land claims. Only when women have tangible control over land or business assets can they access credit, participate in markets, and engage in new forms of trade.
Equally important is the strengthening of the “mobile” pillar of the JAM trio. Subsidized smartphones and affordable data plans would allow women to independently access their accounts and digital payment tools without relying on shared devices that infringe on privacy and autonomy. Banks, fintechs and mobile operators must co-create financial products that reflect the reality of women’s informal, seasonal or sporadic incomes; responsibilities of care; and limited financial and digital literacy.
Community-based trust networks can bridge the trust gap. Initiatives like digital banking sakhis and secure WhatsApp or UPI groups can offer women a trusted space to seek advice, share experiences and collectively resolve doubts. Another priority should be to increase the number of female banking agents – less than 10% of India’s 1.3 million business correspondents are women.
The path to true empowerment lies in combining access with agency-building—ensuring that women can not only receive money, but control it, grow it, and sustain it for their own advancement.
Shravani Prakash, Jiya Bharti and Riya Khanna are fellows of the ICRIER Economic Policy for Women-Led Development Program
Published – 19 October 2025 22:15 IST
