Why is it in the News?

Financial inclusion awareness programmes must give special attention to women in households not headed by women.

Context:

• Financial inclusion is a key driver for realizing a more sustainable and inclusive future, as it directly influences the achievement of eight out of the 17 United Nations' Sustainable Development Goals (SDGs).
• Despite its importance, inequalities continue to exist, with India's subpar performance in the Global Gender Gap Report 2023 underscoring significant gaps in the economic realm.
• To address these disparities, particularly for women in India, it is vital to conduct a comprehensive evaluation of the complex aspects of financial inclusion.
• Insights can be drawn from multiple sources such as the World Bank's Global Findex Database and the National Family Health Survey (NFHS), ultimately paving the way for targeted interventions and improved financial access for all.

What is Financial Inclusion?

• Financial inclusion is a method of offering banking and financial services to individuals.
• It aims to include everybody in society by giving them basic financial services regardless of their income or savings.
• It focuses on providing financial solutions to the economically underprivileged.
• The term is broadly used to describe the provision of savings and loan services to the poor in an inexpensive and easy-to-use form.
• It aims to ensure that the poor and marginalized make the best use of their money and attain financial education.
• With advances in financial technology and digital transactions, more and more startups are now making financial inclusion simpler to achieve.

The Role of Financial Inclusion in Advancing Women's Empowerment:

• Financial inclusion not only facilitates women's access to bank accounts but also drives broader economic participation and empowerment.
• By offering women avenues for savings, credit, and investment, financial inclusion empowers them to manage risks, build assets, and seize socio-economic opportunities.
• In doing so, it bolsters women's resilience to economic uncertainties, fosters greater household welfare, and promotes economic stability, thereby illustrating its pivotal role in driving gender equity and sustainable development.

Insights from NFHS Data on Women's Financial Inclusion Progress:

• The NFHS data offers a comprehensive understanding of the multi-faceted dimensions of financial inclusion among women in India.
• Over the past two decades, several indicators point towards a significant improvement in women's economic empowerment and access to financial services including:

Financial Autonomy and Decision-making:

• A notable aspect highlighted by the NFHS surveys is the increasing financial autonomy among women.
• There has been a marked shift towards greater control over financial resources, with more women possessing self-operated bank accounts and playing an active role in financial decision-making within their households.
• This trend signifies a positive step towards women's economic independence, contributing to their overall empowerment and well-being.

Awareness and Utilization of Micro-Credit Programs:

• Micro-credit schemes have emerged as a key facilitator of financial assistance for women entrepreneurs and small business owners in rural India.
• The NFHS data indicates a growing awareness of these programs among women, with an increasing number utilizing micro-credit facilities to support their economic activities.
• This underscores the importance of targeted interventions and support mechanisms in promoting women's access to formal credit sources, fostering entrepreneurship, and generating income at the grassroots level.

Access and Utilization of Formal Banking Services:

• An analysis of factors such as education, occupation, and household characteristics reveals key determinants of women's financial inclusion.
• The NFHS data emphasizes the pivotal role of education in enabling women's awareness and utilization of financial services.
• Similarly, occupation and access to electronic media also significantly influence women's access to formal banking channels and digital financial tools.
• These insights underscore the need for targeted interventions and policy measures to address disparities and barriers, ensuring inclusive financial access, particularly among marginalized and vulnerable groups of women.

Advances in Global Financial Inclusion and India:

• Financial inclusion has become a key enabler of economic growth and development worldwide, with India demonstrating substantial progress in this arena.
• According to the World Bank's Global Findex Database, there has been a significant increase in adult ownership of bank accounts globally between 2011 and 2020.
• India's commendable growth of 42 percentage points during this period exemplifies the success of targeted interventions promoting financial access, particularly for marginalized communities such as women.
• This upward trend emphasizes the importance of continued efforts in fostering inclusive financial systems to ensure sustainable development and shared prosperity.

The Influence of Government Initiatives on Financial Inclusion:

• India's commitment to advancing financial inclusion has resulted in substantial progress, particularly in reducing the gender gap in account ownership.
  • The introduction of the Pradhan Mantri Jan Dhan Yojana (PMJDY) in 2014 played a pivotal role in this achievement, offering universal access to banking services, including savings accounts, remittances, and overdrafts to underserved communities such as women in rural and urban areas.
  • By January 2024, PMJDY had facilitated the opening over 28 crore accounts for women, significantly contributing to bridging the gender gap in financial access.
• Furthermore, government initiatives like the Deendayal Antyodaya Yojana and the National Rural Livelihood Mission (DAY-NRLM) have been instrumental in fostering women's economic empowerment and participation in the formal financial sector.
  • These schemes provide opportunities for skill development, entrepreneurship training, and access to credit, enabling women to establish and sustain livelihoods.
• In addition, social protection programs such as the Pradhan Mantri Awas Yojana and Pradhan Mantri Matru Vandana Yojana offer financial assistance and support during critical life stages such as pregnancy and homeownership.
  • Collectively, these initiatives have played a vital role in promoting women's economic independence and overall well-being, underscoring the importance of continued efforts towards inclusive financial systems.

Challenges and Way Forward:

• While significant progress has been made in advancing financial inclusion, several challenges remain, requiring concerted efforts and multi-stakeholder collaboration to address. Key areas of focus include:
• Enhancing Financial Literacy: Despite the expansion of banking services, a significant proportion of the population, particularly in rural and marginalized communities, lack adequate knowledge and understanding of financial products and services.
  • By promoting targeted education and awareness campaigns, we can empower individuals to make informed financial decisions and fully utilize available resources.
• Bridging the Digital Divide: The potential of digital financial services to enhance access and convenience is immense.
  • However, disparities in internet connectivity, smartphone ownership, and digital literacy create barriers to their effectiveness.
  • Expanding digital infrastructure and promoting digital literacy initiatives are critical to ensuring equitable access to digital financial services for all segments of society.
• Promoting Inclusivity of Marginalized Communities: Systemic barriers continue to hinder the meaningful participation of marginalized communities, including women, minorities, and persons with disabilities in the financial ecosystem.
  • These barriers are multifaceted, encompassing social, cultural, and economic factors.
  • To overcome these challenges, tailored interventions and affirmative action programs are necessary, fostering an enabling environment that promotes their inclusion and empowerment.
• Advancing through Collaboration: A collaborative approach involving multiple stakeholders, including government agencies, financial institutions, civil society organizations, and grassroots initiatives, is indispensable in advancing financial inclusion.
  • By coordinating efforts, leveraging resources, and implementing holistic solutions, we can collectively navigate the path ahead, overcoming challenges, and ensuring inclusive and sustainable financial systems for all.

Conclusion

Advancing financial inclusion for women in India is essential for fostering inclusive growth and sustainable development. While initiatives like PMJDY and DAY-NRLM have made significant strides, concerted action is necessary to tackle remaining disparities and fully leverage women's economic potential. By emphasizing education, digital literacy, and tailored awareness initiatives, India can unlock fresh opportunities for women's economic empowerment, thereby advancing the agenda of inclusive growth and prosperity.

Why is it in the News?

The latest India Justice Report (IJR) points out that the gender gap remains wide in each of the subsystems that make up the justice delivery system — police, judiciary, prisons, legal aid, and human rights commissions.

Background:

• Diversity stands as a fundamental cornerstone of institutional efficacy globally, with gender inclusivity serving as a pivotal measure of dedication to this principle.
• As International Women’s Day is celebrated today (8th March), it becomes imperative to assess the status of gender diversity within India's justice delivery system, as underscored in the recent findings of the India Justice Report (IJR).
• The data underscores a stark gender disparity within different subsystems, prompting inquiries into the extent of justice institutions' dedication to cultivating inclusivity.

Gender Disparities in India's Justice Delivery System as Revealed by the India Justice Report (IJR):

• Systemic Inequities: The IJR underscores pervasive gender gaps within every facet of the justice delivery system, encompassing the police, judiciary, prisons, legal aid, and human rights commissions.
  • This comprehensive analysis illuminates the systemic nature of the issue, indicating that gender disparities are not isolated incidents but rather entrenched throughout the justice system.
• Quotas and Limited Progress: While quotas have aided in women's inclusion, their impact appears concentrated in lower-level positions within the justice system.
  • Despite affirmative action measures, women's representation in higher-ranking roles remains disproportionately low.
• Numerical Underrepresentation: The IJR's analysis reveals a stark reality, with only approximately three lakh women active in the justice delivery system.
  • This numerical underrepresentation not only indicates inadequate representation but also suggests underlying structural barriers hindering women's full participation.
• Gender Disparity in the Judiciary: Within the judiciary, data indicates a concerning trend where women's presence diminishes significantly as one ascends the hierarchy.
  • While women comprise 35% of subordinate judges, this percentage drastically declines to 13% in high courts, with a notable lack of women in the Supreme Court.
• Leadership Void: The absence of a female Chief Justice of India, despite decades of existence, underscores persistent barriers preventing women from ascending to the highest echelons of the judiciary.
  • Similarly, women's representation in chief justice positions in high courts remains disproportionately low.
• NHRC's Gender Imbalance and Limited Women Representation: The NHRC, entrusted with upholding fairness and justice, demonstrates a glaring lack of gender diversity, having never had a female commissioner.
  • This absence of women in decision-making roles within a human rights commission highlights institutional disregard for gender representation.
• Similar gender imbalances extend to state commissions, with few women serving as members or holding leadership positions, emphasizing the systemic nature of gender disparity within these crucial institutions.

What are the Potential Factors Contributing to Disparity?

• Institutional Apathy and Lack of Initiative: The absence of women in pivotal roles within these commissions reflects not only a numerical deficit but also a lack of proactive efforts to address and rectify this imbalance.
  • Findings from the IJR suggest a notable apathy within these institutions, where fostering gender diversity is often overlooked or relegated to a secondary concern.
• Complacency: State commissions, akin to the NHRC's shortcomings, fail to exemplify gender inclusivity.
  • The IJR's data paints a discouraging picture, with only a few commissions demonstrating a willingness to appoint women to decision-making positions.
  • The absence of proactive measures perpetuates an institutional culture indifferent to the value of diverse perspectives and experiences.
• Deflection of Responsibility: Decision-makers within these institutions often deflect responsibility instead of addressing the root causes of gender disparity.
  • Excuses citing "difficulties" in "accommodating" more women serve as common deflection tactics, diverting attention from the urgent need to challenge existing institutional structures and cultures hindering women's entry and retention.

What are the Possible Benefits of Diversity Within the Justice Delivery System?

• Global Research Insights: Research worldwide consistently highlights the positive outcomes of diverse and inclusive work environments.
  • The IJR echoes this global perspective, emphasizing that the integration of women and other diversities can reshape institutional culture within the justice system.
  • It challenges conventional practices by introducing fresh perspectives, experiences, and methodologies that contribute to a more comprehensive understanding of complex issues.
• Internal Cultural Transformation: Incorporating women into traditionally male-dominated institutions disrupts established norms and cultivates a culture of openness.
  • This transformation extends beyond numerical representation, fostering the integration of diverse viewpoints, communication styles, and problem-solving approaches.
  • Women, as essential contributors, can drive a shift towards more collaborative, empathetic, and innovative decision-making processes.
• Improved Public Perception: Inclusive institutions not only benefit internally but also enhance public trust and perception.
  • A justice delivery system that mirrors the diverse population it serves becomes more responsive, credible, and reflective of societal values.
  • This alignment between the institution and the public fosters trust and inclusivity, strengthening the legitimacy and effectiveness of the justice system.

Way Forward:

• Institutional Readiness: Initiating institutional change necessitates preparedness. Justice administrators are urged to proactively tackle systemic obstacles impeding women's inclusion.
  • This entails conducting a thorough assessment of current structures, policies, and practices to identify and dismantle barriers obstructing women's full and equitable participation at all levels of the justice system.
• Leading Through Example: The absence of a female Chief Justice of India and the scarcity of women in judiciary leadership roles underscore the imperative for a transformative shift.
  • Institutions must actively advocate for and facilitate women's ascension to leadership positions, challenging entrenched biases and breaking the glass ceiling that historically hindered their advancement.
• Reassessing Recruitment and Retention Strategies: There is a pressing need to critically reassess recruitment and retention practices within the justice delivery system.
  • This entails a comprehensive review of hiring procedures, promotion criteria, and initiatives to ensure gender-equitable treatment throughout individuals' careers.

Conclusion

To achieve justice, barriers must be dismantled, equal opportunities ensured, and the institutional biases perpetuating gender disparities acknowledged. Upholding equality mandates justice institutions to address systemic impediments hindering women's inclusion, transcending superficial measures. Decision-makers must lead by example, reassess practices, and implement strategies fostering gender balance and inclusivity within the justice system.