Do cash transfers build women’s agency?, Pg7

Key Highlights:

• The Bihar government launched the Mukhyamantri Mahila Rojgar Yojana, transferring ₹10,000 to 75 lakh women for self-employment seed capital.
• Women-focused cash transfer programs are increasing, including Karnataka’s Gruha Lakshmi and West Bengal’s Lakshmir Bhandar.
• As of August 2025, over 56 crore Pradhan Mantri Jan Dhan Yojana accounts exist, with women owning 55.7%.
• UPI transactions have surged from ₹2 crore in FY17 to ₹18,600 crore in FY25, but women's digital payment usage lags.

Detailed Insights:

• Direct Benefit Transfer (DBT) schemes enhance women’s control over resources, increasing their influence in household decisions and improving outcomes for children and the elderly.
• Despite near-universal account ownership, about 20% of women's accounts remain dormant due to insufficient funds, low perceived need, or discomfort with formal banking.
• Financial and digital literacy remain significant barriers, with over two-thirds of Indian women relying on male relatives for financial transactions.
• To empower women, schemes need to move beyond depositing money and provide long-term support, including secure property rights and joint land titles.
• Subsidized smartphones and affordable data plans would enable women to independently access their accounts and digital payment tools.
• Community-based confidence networks, such as digital banking sakhis and secure WhatsApp groups, can offer trusted spaces for women to seek advice and resolve doubts.
• Increasing the number of female banking agents is crucial, as less than 10% of India’s 1.3 million business correspondents are women.

Key Concepts Involved:

• Direct Benefit Transfer (DBT): A mechanism to transfer subsidies and benefits directly to citizens through their bank accounts.
• JAM Trinity: Jan Dhan, Aadhaar, and Mobile phones, the infrastructure enabling targeted and transparent delivery of government benefits.
• Financial Agency: The ability of individuals to make informed decisions and take effective action regarding their financial well-being.