A Study on Women's Financial Inclusion and Financial Agency in Madhya Pradesh

Abstract

Financial inclusion has emerged as a critical instrument for promoting women’s economic empowerment and reducing gender-based inequalities in developing economies. Despite significant progress in expanding formal banking access through initiatives such as the Pradhan Mantri Jan Dhan Yojana (PMJDY), concerns remain regarding the extent to which account ownership translates into meaningful financial agency among women. This study examines the status of women’s financial inclusion in Madhya Pradesh, India, with a particular focus on operational autonomy, digital financial participation, access to credit, and institutional support mechanisms. Adopting a qualitative research design, the study draws upon data collected through 25 semi-structured interviews with rural and semi-urban women, four focus group discussions with Self-Help Group (SHG) members, and eight key informant interviews involving banking officials and Bank Sakhis. Thematic analysis was employed to identify recurring patterns and structural barriers affecting women’s engagement with formal financial systems. The findings reveal that while bank account ownership has increased substantially, genuine financial autonomy remains constrained by patriarchal household structures, limited asset ownership, low digital literacy, and restricted access to independent credit. The study further highlights the significant role of the Bank Sakhi model in fostering trust, improving accessibility, and enhancing women’s participation in formal financial services. The paper contributes to the growing discourse on gender-responsive financial inclusion by demonstrating the need to move beyond access-oriented policies towards agency-driven and gender-transformative financial frameworks. Policy recommendations are proposed to strengthen women’s financial capability, digital inclusion, and economic empowerment in emerging regional contexts.