New Delhi: While 89% women hold a bank account in India, this access has failed to translate into meaningful economic control and agency, a new analysis reveals.

According to the anlaysis published in The Hindu by researchers from Indian Council for Research on International Economic Relations (ICRIER), as of August 2025 the Pradhan Mantri Jan Dhan Yojana has led to the opening of over 56 crore accounts, of which women own 55.7%. However, a deeper look at the data, sourced from the World Bank Findex and CMS-Telecom report, exposes a stark gap between having an account and using it for financial advancement.

A gulf between access and action

While an account is the first step, the analysis shows most women use them for the basic purpose of withdrawing cash from welfare schemes, such as Bihar's Rs 10,000 seed capital from the Mukhyamantri Mahila Rojgar Yojana.

A breakdown of financial activities show limited engagement, as per the analysis:

• Only 30% of women with accounts own a debit card.
• Just 25% use their account to send or receive money, and 21.2% have used it to save.
• Usage for digital payments stands at a mere 7.8%, with only 18.9% having ever used a card or mobile phone for a transaction.
• Critically, engagement in business activity is minimal. Only 11.9% have ever borrowed money, with just 9% borrowing specifically to start or operate a business.
• Only 8.4% have used their account to pay utility bills.
• Nearly one in five accounts (17.5%) remains dormant.

The mobile and digital divide

A primary barrier to deeper financial participation is the digital divide. The report highlights that mobile phone ownership and autonomy are crucial for modern banking, yet women face significant hurdles. Even basic digital tasks are a challenge, with only 27% of women with mobile phones using them to check an account balance.

While 32% of women have a SIM card registered in their name, only 28% can conduct a mobile financial transaction without needing assistance from a male relative. Many lack personal devices, with 31% sharing a phone with family members and 24% relying on someone else's phone entirely.

The reasons for not owning a mobile phone are starkly economic and social: 38% find them too expensive to maintain, and 32% cannot afford to buy one in the first place. Beyond cost, 27% report difficulties with reading or typing, and 18% cite personal safety concerns as a reason for not owning a phone.

Systemic barriers to empowerment

The researchers argue that overcoming these challenges requires moving beyond simply opening accounts. They identify deep-rooted patriarchal norms and low financial literacy as significant barriers that prevent women from making independent financial decisions.

To build genuine financial agency, the report recommends strengthening property rights and ensuring women have joint land titles, which can be used as leverage for credit. It also calls for a significant expansion of female banking agents – currently, women make up less than 10% of India's 1.3 million business correspondents. Building community-based trust networks, such as Digital Sakhis, is also cited as a vital step.

Ultimately, the analysis concludes that for cash transfers and bank accounts to become true instruments of empowerment, they must be supported by a robust ecosystem that addresses digital access, literacy, and social norms.

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