India closes gender gap in bank accounts, but digital divide remains

An ILO-NCAER report reveals that while India has achieved near gender parity in bank account ownership, a significant gap persists in women's use of digital financial services. Only 25.2% of women can bank online, compared to 47.1% of men.

India has nearly eliminated the gender gap in basic bank account ownership, but women continue to lag significantly behind men in the use of digital financial services, according to a joint policy brief by the International Labour Organization (ILO) and the National Council of Applied Economic Research (NCAER).

The policy brief, titled Advancing Women's Digital Financial Inclusion in the Platform Economy, said women's bank account ownership in India increased from around 43 per cent in 2014 to approximately 89 per cent in 2024. For men, account ownership stood at about 88 per cent in 2024, compared with around 62 per cent in 2014.

However, the report said this progress in access to conventional bank accounts has not been matched by women's ability to independently use digital financial services. "India's success in achieving near gender parity in conventional bank-account ownership has not yet been replicated in digitally mediated financial services," the policy brief said.

Persistent Gap in Digital Usage

Data cited from the Comprehensive Annual Modular Survey 2022-23 showed that only 25.2 per cent of women aged 15 years and above could perform online banking transactions, compared with 47.1 per cent of men, a gap of nearly 22 percentage points. The divide was even sharper in rural India, where only 17.1 per cent of women could undertake online banking, against 39.2 per cent of men.

On a broader measure combining the ability to search the internet, use email and conduct online banking, only 18 per cent of women possessed all three skills compared with 30.1 per cent of men.

The report also highlighted a wide gap in mobile money use. In 2024, 32 per cent of men in India had a mobile money account compared with only 14 per cent of women, resulting in an 18-percentage-point gender gap. The brief said this was three times the corresponding global gender gap of six percentage points.

Significance in a Growing Platform Economy

The gap assumes significance as India's platform economy expands. The number of platform workers in the country, estimated at 7.7 million in 2020, reached 12 million by FY2025 and is projected to touch 23.5 million by 2029-30, the report said, citing the Economic Survey and NITI Aayog estimates.

Key Barriers for Women

The policy brief said women remain under-represented in the platform economy due to several barriers, including gaps in skills and digital literacy, mobility and safety concerns, restrictive social norms and limited access to financial services.

It argued that financial inclusion must go beyond merely opening bank accounts and enable women to independently and sustainably use payments, savings, credit and insurance products. (ANI)

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