I Can Hold My Own Purse

Author(s): Ms. Neha Bhatnagar, Vice President-Partnerships and Ms. Esha Saini, Assistant Manager-Partnerships, Impact Investors Council (IIC)

Mar, 2025

Isn’t Being a Woman Enough to Access the “Privilege” of Financial Literacy?

A Tale as Old as Time
The portrayal of women in Indian society has been complex, swinging between reverence and restriction. Ancient mythology depicted women as embodiments of wisdom and power, yet societal practices often contradicted these ideals. Goddesses like Saraswati (symbolizing knowledge) and Lakshmi (symbolizing wealth) prove that both the deities knew where to invest their money and brains. Yet, in practice, caregiving roles often took precedence over economic participation.
 

Many would question whether women should “be accommodated” – are we still living in a world where a certain gender is accommodated while talent is overlooked? The ask for cerebral equality is often misquoted as a demand for special rights over the “gender in majority”. The real question is not whether women deserve a seat at the table of financial literacy and leadership, but why, despite their proven competence, they are still struggling to enter the room.      Consider the academic performance of young women. Year after year, girls excelled in board exams. In a purely meritocratic world this should translate into equal opportunities, financial education, and financial independence. But does it?

 

Two Realities, One Challenge
Women’s financial literacy falls into two realities: those with education and careers who still struggle with financial independence, and those denied both, facing even greater barriers. This piece focuses on the former—women who have broken academic and professional ceilings yet remain uncertain in financial decision-making. This article is not written to deepen the divide between men and women, but to shed light on a shared challenge that, when addressed collectively, strengthens us as a society. Their struggle is one we’ve seen, lived, and can speak to authentically. More importantly, they are the ones who can access this discussion. In our next edition, we’ll explore the challenges of women without formal education or career opportunities and ways to empower them.    

     

Introduction: Proposing a Vision for Tomorrow’s Leaders
“Men and women are not adversaries in the fight for progress; they are allies.” Together, we face systemic inequities and structural barriers, one of which is financial illiteracy – a critical hurdle holding back the potential of millions of women in India.

 
In a country as diverse and dynamic as India, the ability to manage finances should be a universal right, not a privilege reserved for the few. Yet, millions of women remain excluded from the world of financial literacy, trapped in a cycle of dependency and vulnerability. While India has made significant strides in promoting gender equality in education and employment, the financial knowledge gap persists, hindering true empowerment. The lack of financial literacy among women is more than a statistic; it is a deeply human story of lost potential.

 

A Turn of Events: Progress, Yet Miles to Go
Today, India celebrates women’s empowerment as a story of resilience and transformation. Let’s trace this turn of events – a timeline of milestones that signify how far we’ve come and the journey that remains.

 

Figure 2: The Journey of Indian Women towards Financial Literacy

Financial Literacy: More Important Than Ever Today
As the financial landscape becomes increasingly complex, financial literacy is vital for women to navigate challenges, build wealth, and secure independence. It is not enough to access banking; women must be equipped with knowledge to make informed, strategic decisions for long-term success and empowering their own families.

 

Financial literacy encompasses budgeting, saving, investing, and understanding taxes and insurance. It enables women to achieve financial stability – living within means and securing their future – and independence, empowering them to make decisions aligned with their goals.

 

What Else is Included Under Financial Literacy?

 

Let the Numbers do the Talking
The S&P Global FinLit Survey states that worldwide, 30% of women are financially literate . In India, the situation is even more pronounced, with only 21% of women deemed financially literate, according to a 2020-21 National Centre for Financial Education (NCFE) survey3.

 

Corroborating the aforementioned, data from the Humanity Welfare Council also reconfirms that 80% of Indian women struggle with financial literacy, highlighting the critical need for targeted interventions4.

 

Access to financial systems is another significant challenge. About 62% of Indian women do not own bank accounts or have limited access to banking services5, emphasizing the barriers many face in achieving financial independence. Educated women in urban areas fare better but are still underrepresented in advanced financial decision-making.

 

So, what's in my bag? A Repository for Women Seeking Financial Literacy in India

 

In India, understanding key laws and financial products is essential for ensuring economic independence and security. We have tried to capture a few to get the ball rolling for the readers:

1.    Tax Benefits and Financial Schemes

• Section 80C of Income Tax Act: Offers tax exemptions on investments like PPF and life insurance.
• Pradhan Mantri Mudra Yojana: Provides loans up to ₹10 lakh to women entrepreneurs.
• Sukanya Samriddhi Yojana: Helps save for a girl child's future with tax-free returns.

2.    Women Entrepreneurs’ Rights

• Stand-Up India Scheme (2016): Provides loans up to ₹1 crore for women entrepreneurs.
• MSME Act (2006): Offers financial support, subsidies, and easier financing for women-led businesses. Social Security and Pension

3.    Social Security and Pension

• Employees' Provident Fund Act (1952): Ensures provident fund benefits and insurance for working women.
• National Pension Scheme (NPS): Women can invest for retirement and receive monthly pensions.
• Pradhan Mantri Jan Dhan Yojana (2014): Ensures financial inclusion by providing bank accounts for women.

4.    Legal Protections Against Discrimination

• Equal Remuneration Act (1976): Ensures equal pay for equal work.
• Maternity Benefit Act (1961): Grants 26 weeks of paid maternity leave.
• The Sexual Harassment Of Women At Workplace (Prevention, Prohibition And Redressal) Act, 2013: Protects women from sexual harassment and ensures access to grievance redressal.

5.    Insurance and Health Benefits

• The Employees’ State Insurance Act (1948): Provides health insurance benefits, including maternity, disability, and medical care for women workers.
• Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (PMJAY): Offers free health coverage of up to ₹5 lakh per family, benefiting low-income women.
• Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY): Provides affordable life insurance coverage for women between the ages of 18 and 50.
• Pradhan Mantri Suraksha Bima Yojana (PMSBY): Offers accidental insurance, ensuring financial protection in case of disability or death.

6.    Property Rights and Inheritance

• Hindu Succession Act (1956): Grants equal inheritance rights to daughters in ancestral property.

 

Solutions to Address Financial Literacy Disparities

The gap in financial literacy among women is not just a social issue; it is a systemic challenge that limits economic growth and individual empowerment. For women to claim their rightful place in decision-making, whether in households, businesses, or the boardroom, equipping them with financial knowledge is essential. Addressing this requires a multifaceted approach involving all stakeholders, including industry leaders, policymakers, and civil society.

What can we do?

1.    Awareness Programs and Ecosystem Engagement: 

• Customized Training Modules: We can leverage our networks to launch targeted awareness programs catering to diverse groups of women, from urban professionals to rural entrepreneurs. These programs will cover essential topics such as budgeting, savings, investments, and the importance of financial independence.
• Ecosystem Collaboration: By collaborating with financial institutions, corporations, and NGOs, we can create a ripple effect, encouraging these stakeholders to adopt similar initiatives within their own networks to maximize impact. 

2.    Research Studies to Uncover Deeper Insights:

• Data-Driven Analysis: Conducting comprehensive studies to understand the root causes of financial illiteracy – examining cultural norms, societal stereotypes, and access barriers – can provide actionable insights.
• Informed Interventions: We can act as a bridge between the findings and actionable solutions, using the research to inform targeted interventions and policy recommendations tailored to the Indian context.

3.    Industry Dialogues and High-Impact Sessions:

• Leadership Roundtables: Facilitate sessions with industry leaders, policymakers, and financial experts to spotlight women’s role in shaping financial and organizational sustainability.
• Showcasing Success Stories: Highlight examples of women who have broken financial barriers, inspiring others and challenging stereotypes.

4.    Policy Advocacy:

• We can play a pivotal role in advocating for policies that prioritize women’s financial inclusion and literacy. By aligning with government initiatives, we can help ensure that awareness campaigns and financial schemes reach underserved women across India.

By fostering collaboration, enabling research, and engaging with influential stakeholders, every Indian can ensure that financial literacy is no longer a privilege but a right accessible to every woman in India. The truth is – financial literacy isn’t just for the boardroom, it’s for the living room, the kitchen table, and every single woman who has ever been told money matters aren’t for her. Now, ask yourself: Are you ready to let her carry her own purse?