• Revision ID 71631 REVISION
  • 2018-05-24 17:13:39
  • by Burhan Wazir (talk | contribs)
  • Note: edited - picture added
 
   
Title Title
50-rupee-banknote-currency-68912 Has India performed well in bridging the gender gap in findex?
Summary Summary
  The global financial index, introduced in 2011, provides people with a platform to measure financial inclusion
Highlights Highlights
  One report says India’s share of inactive bank accounts, at 48%, is the highest in the world. , Another report says less than 15% of women entrepreneurs in India have access to finance in the form of credit.
Content Content
  In a country with considerable disparity between genders, the <a href="https://globalfindex.worldbank.org/">Global Findex of 2017</a> illustrates a progressive trend in bridging the gender gap in India.  However, the Findex stops at the point of financial accessibility where there is a shortfall as women within the Indian economy tend to possess a <a href="http://www.iibf.org.in/documents/JDY_Revised_Case_Study_Report-160118.pdf">formal bank account</a> which is mostly inactive or dormant<strong>. </strong>
  It can be seen that India has attempted to bridge the gender gap in account ownership between men and women in multiple ways:<u></u>
  <strong>Account ownership: </strong>
  Comparisons between the 2014 and 2017 Global Findex data demonstrates that India has made <a href="https://www.hindustantimes.com/columns/more-financial-inclusion-means-more-empowerment-for-women/story-Dn77CQUhyq4mlwlnMEGN9M.html">substantial progress</a> in bridging and reducing the gender gap from 20% to 7% in a relatively small period of three years.
  This has been achieved partly through making India's <a href="https://en.wikipedia.org/wiki/Aadhaar">Aadhaar card</a> a mandatory document for opening accounts in financial institutions. The card is a 12-digit unique identification number given to Indian residents based on their demographic and bio-metric data. Around 1.19bn Indian citizens currently possess an Aadhaar card.
  But in contrast, improvement has been slow in helping those women working in informal sectors. A<a href="https://qz.com/1260139/india-has-the-highest-number-of-inactive-bank-accounts-in-the-world/"> report </a>by Quartz states, “In India, where 90% of unbanked adults reported having proof of identity issued by the national government, recent research suggests that government-provided bio-metric identification cards were among the factors enabling a rapid decline in the number of adults without an account”.
  One barrier to banking is the threat of <a href="https://scroll.in/article/876926/at-the-very-end-of-scs-aadhaar-hearings-government-admits-it-has-been-dishonest-all-along">breaches to Aadhaar data</a>. This fear could discourage civilians to from availing banking services. A similar condition emerged in neighbouring Pakistan where only <a href="https://depts.washington.edu/esreview/wordpress/wp-content/uploads/2016/06/Financial-Inclusion-in-Pakistan.pdf">36% of women</a> have access to mobile phones, a key technology asset in current financial inclusion strategies. To break the deadlock, companies like <a href="http://www.jazzcash.com.pk/">Jazz Cash</a> have sought to attract female customers and address cultural and societal needs. In India, companies like <a href="http://www.ujjivan.com/">Ujjavin Financial Services</a> are also investing in the same strategy.
  [caption id="attachment_70127" align="alignleft" width="614"]<img class="wp-image-70127 size-full" src="https://s3-eu-west-1.amazonaws.com/wikitribune-uploads-master/2018/05/14092506/image_6483441-1.jpg" alt="" width="614" height="368" /> <strong>Graphic by Kamesh Shekar</strong>[/caption]
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A 50 Rupee banknote from India &nbsp;
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  <strong>Savings: </strong>
  Though India has achieved progress in the number of accounts owned, this is contrasted by a <a href="https://www.thehindubusinessline.com/money-and-banking/at-48-india-tops-in-bank-users-with-inactive-accounts-says-world-bank/article23606293.ece">report in Live Mint</a> which says that “India’s share of inactive accounts, at 48%, is the highest in the world...”. There can be multiple reasons for this phenomenon, such as women being paid less compared to men, or the maintenance of a minimum balance in bank accounts, or maintenance, travel and service charges.
  Earlier this month, <a href="https://economictimes.indiatimes.com/industry/banking/finance/banking/levy-on-free-services-banks-to-ask-government-to-recall-tax-demand/articleshow/63903864.cms">banks were asked to pay services taxes</a> and interest on previously free services like cheque transactions and cash machine withdrawals. As a response to this, banks are in the process of <a href="https://economictimes.indiatimes.com/industry/banking/finance/banking/banks-told-to-shell-out-tax-on-free-services-to-customers/articleshow/63886894.cms">ceasing free services</a>. With the cessation of free services, there would be fewer incentives for customers to transact using formal institutions. An article in India Today states that the bank deposit growth rate has hit its <a href="https://economictimes.indiatimes.com/industry/banking/finance/banking/growth-in-bank-deposits-falls-to-five-decade-low/articleshow/64023063.cms">lowest since 1962-63 at 6.7%.</a>
  <strong>Credit: </strong>
  According to a <a href="http://www.gbaforwomen.org/download/the-economics-of-banking-on-women/">Global Banking Alliance for Women report</a>, less than 15% of women entrepreneurs in India have access to finance in the form of credit from any formal banking institution. The reasons for the shortage of women seeking credit could be due to cultural barriers, but also the <a href="https://timesofindia.indiatimes.com/business/india-business/women-not-prioritised-for-farm-credit-swaminathan/articleshow/57381307.cms">difficulty of sourcing documents</a> such as payslips as well as collateral for the purposes of seeking a loan.
  In many South Asian countries, <a href="http://www.ilo.org/wcmsp5/groups/public/---dgreports/---cabinet/documents/publication/wcms_618166.pdf">women tend to work within the informal sector</a> where their wages are not regulated and there is little accountability and documentation for the work they do. Further, banks don’t recognize the <a href="https://en.wikipedia.org/wiki/Small_and_medium-sized_enterprises">SMEs</a> (small and medium sized enterprises) mostly. Thus, with the lack of recognition and formal documentation the access to credit from formal financial institutions is restricted for many women.
Categories Categories
  Asia, Finance, India, Pakistan, Sex, Finance
Article type Article type
  essay
Tags Tags
  banking, basic income, Finance, Gender
Author byline Author byline
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Has hero Has hero
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Hero Alignment Hero Alignment
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Featured Image URL Featured Image URL
  https://s3-eu-west-1.amazonaws.com/wikitribune-uploads-master/2018/05/24171015/50-rupee-banknote-currency-68912.jpg
Sources Sources
  <p>Ashraf, N., D. Karlan, and W. Yin. 2010. &#8220;Female Empowerment: Further Evidence from a Commitment Savings Product in the Philippines.&#8221; World Development 28 (3): 333–44</p>
  <p>Demirguc-Kunt, A., and R. Levine. 2009. &#8220;Finance and Inequality: Theory and Evidence.&#8221; Annual Review of Financial Economics</p>
  <p>Demirguc-Kunt, A., Klapper, L., Ansar, S., &amp; Jagati, A. (2017). Making It Easier to Apply for a Bank Account: A Study of the Indian Market. <em>Policy Research Working Papers</em>.</p>
  <p>Demirguc-Kunt, A., Klapper, L., Singer, D., &amp; Oudheusden, P. V. (2015). The Global Findex Database 2014: Measuring Financial Inclusion around the World. <em>Policy Research Working Papers</em>.</p>
  <p>Government of India. &#8220;UIDAI generates a billion (100 crore) Aadhaars: A Historic Moment for India&#8221; Government of India.</p>
  <p>Measuring Women’s Financial Inclusion: The value of Sex- disaggregated data. (2015). <em>Global Banking Alliance for Women</em>.</p>
  <p><a href="http://www.cgap.org/blog/new-accounts-china-drive-global-financial-inclusion-figures">http://www.cgap.org/blog/new-accounts-china-drive-global-financial-inclusion-figures</a></p>
  <p><a href="https://www.businesstoday.in/moneytoday/perspective/debit-cards-atm-swipe-shopping-bill-payment/story/20420.html">https://www.businesstoday.in/moneytoday/perspective/debit-cards-atm-swipe-shopping-bill-payment/story/20420.html</a></p>
  <p><a href="https://www.brookings.edu/blog/techtank/2016/04/01/bridging-the-financial-inclusion-gender-gap/">https://www.brookings.edu/blog/techtank/2016/04/01/bridging-the-financial-inclusion-gender-gap/</a></p>
  <p><a href="http://blog.mondato.com/women/">http://blog.mondato.com/women/</a></p>
  <p><a href="https://qrius.com/10-gender-gap-opening-accounts-pradhan-mantri-jan-dhan-yojna-says-world-bank/">https://qrius.com/10-gender-gap-opening-accounts-pradhan-mantri-jan-dhan-yojna-says-world-bank/</a></p>
  <p><a href="https://datacatalog.worldbank.org/dataset/global-financial-inclusion-global-findex-database">https://datacatalog.worldbank.org/dataset/global-financial-inclusion-global-findex-database</a></p>
  <p><a href="http://www.livemint.com/Consumer/yT14OgtSC7dyywWSynWOKN/Only-17-Indians-own-smartphones-survey.html">http://www.livemint.com/Consumer/yT14OgtSC7dyywWSynWOKN/Only-17-Indians-own-smartphones-survey.html</a></p>
  <p><a href="https://timesofindia.indiatimes.com/india/women-hold-over-50-of-jan-dhan-accounts/articleshow/62924005.cms">https://timesofindia.indiatimes.com/india/women-hold-over-50-of-jan-dhan-accounts/articleshow/62924005.cms</a></p>
  <p><a href="https://www.livemint.com/Industry/8FeZRB9jbVWGVIF7aMHf0I/Is-the-financial-inclusion-drive-in-India-losing-steam.html" rel="nofollow">https://www.livemint.com/Industry/8FeZRB9jbVWGVIF7aMHf0I/Is-the-financial-inclusion-drive-in-India-losing-steam.html</a></p>
  <p><a href="https://www.financialexpress.com/india-news/fact-check-these-indian-states-have-lowest-aadhaar-card-subscribers/965712/" rel="nofollow">https://www.financialexpress.com/india-news/fact-check-these-indian-states-have-lowest-aadhaar-card-subscribers/965712/</a></p>
  <p><a href="https://scroll.in/article/876926/at-the-very-end-of-scs-aadhaar-hearings-government-admits-it-has-been-dishonest-all-along" rel="nofollow">https://scroll.in/article/876926/at-the-very-end-of-scs-aadhaar-hearings-government-admits-it-has-been-dishonest-all-along</a></p>
  <p><a href="https://qz.com/1260139/india-has-the-highest-number-of-inactive-bank-accounts-in-the-world/" rel="nofollow">https://qz.com/1260139/india-has-the-highest-number-of-inactive-bank-accounts-in-the-world/</a></p>
  <p><a href="http://www.business-standard.com/article/economy-policy/india-at-the-forefront-of-global-growth-in-financial-inclusion-world-bank-118042000116_1.html" rel="nofollow">http://www.business-standard.com/article/economy-policy/india-at-the-forefront-of-global-growth-in-financial-inclusion-world-bank-118042000116_1.html</a></p>
  <p><a href="https://www.womensworldbanking.org/news/blog/what-does-the-global-findex-have-in-common-with-the-olymp" rel="nofollow">https://www.womensworldbanking.org/news/blog/what-does-the-global-findex-have-in-common-with-the-olymp</a><span style="font-family: inherit; font-size: 1.6rem;">ics&#8217;/</span></p>
  <p><a href="https://www.huffingtonpost.in/roshika-singh/banking-on-women_b_8597558.html" rel="nofollow">https://www.huffingtonpost.in/roshika-singh/banking-on-women_b_8597558.html</a></p>
  <p><span style="font-family: inherit; font-size: 1.6rem;"><a href="http://datatopics.worldbank.org/financialinclusion/" rel="nofollow">http://datatopics.worldbank.org/financialinclusion/</a></span></p>
  <p><a href="https://economictimes.indiatimes.com/industry/banking/finance/banking/levy-on-free-services-banks-to-ask-government-to-recall-tax-demand/articleshow/63903864.cms" rel="nofollow">https://economictimes.indiatimes.com/industry/banking/finance/banking/levy-on-free-services-banks-to-ask-government-to-recall-tax-demand/articleshow/63903864.cms</a></p>

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