Why in News?

A new survey by the Ministry of Statistics reveals a sharp rise in rural women using online banking, with 30% able to conduct transactions in early 2025—up from 17.1% in 2022-23.

The growth is especially significant among young women, driven by increased digital access and UPI usage.

What’s in Today’s Article?

• Gender Gap in UPI Adoption
• Key Highlights of the Survey
• Online Banking Adoption Rises Across India, Led by UPI: NSS Survey

Gender Gap in UPI Adoption

• Despite UPI’s tremendous growth and potential to enhance digital financial inclusion, a disparity remains in its usage between men and women.
• Low UPI Adoption Among Women
  • Gender-disaggregated data on UPI usage is not publicly available.
  • Estimates suggest less than 30% of UPI users are women.
  • The gender gap is narrower in large cities.
    • In smaller towns and rural areas, women's digital payment usage remains limited.
  • Usage is especially low in rural and semi-urban areas.
  • Factors include:
    • Lack of smartphones
    • Poor internet connectivity
    • Limited digital skills and financial literacy
    • Restricted financial autonomy
• UPI for Her’ Initiative
  • Launched by NPCI and Women’s World Banking in August 2024.
  • Identified a potential market of 200 million women users.
  • Recommends:
    • Phygital (physical+ digital) onboarding
    • Targeted marketing for building confidence
    • Inclusive and gender-intentional design
    • Gender-based user acquisition strategies
    • Digital and financial skills training
• Path Forward
• Improve access to smartphones and connectivity for women.
• Enhance financial and digital literacy through training and outreach.
• Foster women’s financial independence to enable greater engagement with digital tools.
• Conclusion
  • Bridging the UPI gender gap is essential to ensure women’s full participation in India’s digital economy. Digital financial inclusion is not just a tech goal—it’s a gender equality imperative.

Key Highlights of the Survey

• A recent survey by the Ministry of Statistics and Programme Implementation highlights a significant rise in the number of rural Indians able to conduct online banking transactions, with young women showing the most notable improvement.
• The survey results are based on self-assessments, with no independent verification of digital banking skills.
• Key Highlights
  • Rural Women See Major Jump: In the first quarter of 2025, 30% of rural women reported the ability to use online banking, up from 17.1% in 2022-23.
  • Youth Leading the Shift: Among females aged 15–24, the figure jumped to 51.4%, more than double the 19.6% recorded in 2022-23.
  • Young Men Ahead: In the same age group, 73.3% of rural men reported being able to bank online, compared to 40.2% in 2022-23.

Online Banking Adoption Rises Across India, Led by UPI: NSS Survey

• The 80th round of the National Sample Survey (NSS), conducted in early 2025, reveals significant growth in online banking across India, with rural areas showing remarkable progress.
• The survey covered 1.42 lakh individuals from 34,950 households nationwide.
• Urban Growth Steady, Rural Surge Sharp
  • In urban areas, 62.4% of people aged 15+ reported using online banking, up from 50.6% in 2022-23.
  • Nationally, online banking usage among those aged 15+ rose to 48.9%, from 37.8% in 2022-23.
• UPI Dominates Digital Transactions
  • UPI emerged as the preferred platform, with 86.7% of rural users and 74.4% of urban users relying solely on it.
  • Only 18% of users combined UPI, internet banking, and other channels.
• Government and RBI Efforts Pay Off
  • The surge in digital banking is seen as a win for ongoing government and RBI-led financial inclusion initiatives.
  • The RBI will conduct a dedicated survey on digital payments in FY 2025 to guide future policy.
• Mobile Phones Power the Digital Shift
  • Mobile Usage: 85.7% of individuals aged 15+ used a mobile phone in the past 3 months.
  • Ownership: 70.2% owned a mobile phone—higher in urban areas (81.2%) than rural (64.6%).
  • Gender Gap:
    • 83.9% of males owned a mobile phone vs. 56.2% of females.
    • 79.9% of mobile owners used smartphones.
• Youth Lead Smartphone Penetration
• Over 90% of individuals under 29 years in both rural and urban areas owned a smartphone.
• Rising Internet Use
  • Increased Connectivity:
    • Rural females using the internet rose to 57.6% (from 42.6% in 2022-23).
    • Rural males rose to 72.1% (from 59.5%).
  • Daily Usage: 93% of users accessed the internet daily, primarily through mobile phones.