Reaching India's $5 trillion Economic Ambition will need Gender Equity in Finance: RBI

By: WE Staff | Tuesday, 15 November 2022

Anil Kumar Sharma, executive director of the Reserve Bank of India (RBI), stated on November 14 that more gender equity in the financial sector is crucial for the Indian economy to reach the $5 trillion goal.

He remarked during his speech to the Sa-Dhan National Conference on Financial Inclusion 2022 in Delhi that financial institutions prefer to work with businesses controlled by men, which is why women are at the forefront of innovative projects.

The credit outstanding to women entrepreneurs in India has climbed to about Rs 8 lakh crore, according to the RBI's ED, who also noted that the gender disparity in account ownership has narrowed in the global economy.

Sharma emphasised, however, that despite the fact that the demand and supply sides of finance can both benefit from the digital medium, there is still a gender difference in mobile ownership. According to him, women's lesser proportion is explained by the affordability of cell ownership, which is closely related to financial empowerment.

Although banking correspondents (BCs) can make it simpler for women to access financial services, less than 10% of BCs are female, he continued.

As a result, the RBI is currently examining the entire BC structure because it has fallen short of expectations. For last-mile connectivity in terms of accessibility, usability, and quality, BCs are the quick solution.

But due to a number of circumstances, such as regulatory limitations and operational challenges, they were unable to meet RBI's expectations, he claimed.

"We are in the process to review this entire BC framework, the role of corporate BCs, the services which they offer, what are the issues with them and the low level of women participation etc. These are the issues which we are engaged with (right now) and we will come up with a comprehensive set of regulations on how to revamp this particular framework, this can help us achieve what we intend to achieve," said the official.

Sharma continued by saying that all states, with the exception of three, have agreed to include a financial literacy programme for school education boards that has been developed by the RBI and other authorities.

The country's financial literacy would increase, he claimed, if basic financial literacy could be ingrained in school curricula.