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#HalfABillionStrong

Enabling digital financial inclusion for rural women: emerging findings from India

Shobha Shetty's picture
"Pehle to bank jaane se bhi dar lagta tha, aur ab hum bank wali didi ban gaye hain’’ (Earlier I used to be afraid of stepping into a bank branch but now I am called a bank representative!). These are the words of Nidhi Kumari, aged 24 who hails from a Baheri Village in Darbhanga district of Bihar. You cannot help but notice the pride and new-found self-confidence behind her wide smile.

Nidhi is one of over 1500 Banking Correspondent Agents (BCAs) under the World Bank’s (IDA $500M) National Rural Livelihood Project (NRLP) in India that supports the Government’s National Rural Livelihood Mission (NRLM) in 13 high poverty states.
 
 Jeevika.
Nidhi Kumari at her BC Kiosk serving customers in her village. Photo courtesy: Jeevika.

Agent-based branchless banking in India is not new and has been around for over a decade. Given that there are over 650,000 villages in India and that less than 10 percent of villages have bank branches[i], an ICT-enabled alternate channel is now a dire necessity to enable greater financial inclusion. This agenda got a further boost when the Government of India launched the  Pradhan Mantri Jan Dhan Yojana (PMJDY) in 2014 to boost financial inclusion. To date, over 310 million PMJDY bank accounts (basic savings bank accounts) have been opened with 53 percent of these accounts now being held by women.