Gender Inclusion In Rural Indian Banking Will Accelerate India's Economic Growth

From space research to defence to different disciplines, the previous few decades have seen remarkable growth for women in the workforce. One sector that is no exception to this growth is the banking sector. With the enactment of policies that value a diverse workforce and work-life balance, the financial industry is becoming a lucrative career choice for women in both rural and urban India.

The banking industry is shifting its focus to cultivating an environment for women in their career paths and leadership prospects. For instance, the total female staff representation in the banking sector is 16%, constituted by 23% officers, 30% clerks, and 16% subordinates. Most of the leading banks are now pivoting towards creating a gender-neutral workplace environment.

Women In The Rural Banking Sector

Gender neutrality in the banking world cannot be accomplished without the participation of women from rural settings, as a considerable portion of the population lives in rural areas. With the support of government policies and other initiatives, women are spearheading this revolution and propelling economic growth. Some examples of such initiatives include:

Self-Help Groups: The inception of self-help groups in rural areas has emerged as an effective mechanism to encourage more women to participate in the financial sector. These groups empower women by enhancing their financial literacy and decision-making abilities.

Bank Sakhi: An initiative by the government of India, is promoting gender inclusivity in the banking sector. Under this scheme, women in rural areas are provided training to work in the financial industry. These women, known as ‘bank sakhi’ then serve as intermediaries between the banking system and rural communities. They assist locals in opening bank accounts, transferring money, performing transactions, and accessing other banking services. As per the data provided by the Ministry of Rural Development India, over 50,000 women under this scheme have been trained and certified in 2021. Other projects that promote gender inclusivity in the sector comprise Mantri Mudra Yojana, Sukanya Samriddhi Yojana, Pradhan Mantri Jan Dhan Yojana, etc. 

The Emergence Of NBFCs

NBFCs have become notable players in the developing finance environment, challenging the rules of financial inclusion. As per recent reports, they have served over 1.5 lakh women in the financial sector. In tier 3 and tier 4 areas where access to financial services is restricted, products such as NBFCs have had a substantial impact. They are not only enhancing the financial capabilities of women in these regions but also presenting them with opportunities and digital skills to thrive in the digital age. Apart from this, they promote a more inclusive financial system by catering to female entrepreneurs and providing them with reliable credit avenues.

The Way Forward

In the historically male-dominated banking world, there are definite signs of a march towards an equitable work environment. Organisations and institutions are acknowledging the advantages of cultivating a more gender-balanced workforce. The combined efforts of fintech, banking institutions, and financial institutions are laying the groundwork for more diverse working professionals in the banking industry. However, even with increasing initiatives and active female participation, establishing gender balance in the financial world is a long walk. Businesses and institutions need to assess, monitor, and measure their progress and identify the gaps for cultivating a more inclusive future. 

Authored by Aditi Mittal, Group Head - HR for SAVE Solutions