India has aced financial inclusion of women, now it needs to do more

UPI is booming but many women still left behind, finds study A ₹2 sachet of betel nuts or a ₹10 cup of piping-hot tea can be paid for digitally at Pujari Lakshmi’s tea stall on Hyderabad’s busy and upscale Jubilee Hills Road No. 10. A UPI QR code is prominently displayed at her stall, but Ms. Pujari herself does not know how to use it. She keeps her broken smartphone on a stand next to the gas stove, its screen held in place by two rubber bands. A UPI app is installed on the phone, but when she has to make a digital payment, it is her husband, Pujari Srinivas, or her children who handle the transaction using her UPI ID. “Who doesn’t have a bank account and a smartphone these days?” she says in Telugu, as she pours tea for her customers. “But I don’t know how to use UPI apps. What if the money goes to the wrong account?” The situation reflects a broader trend identified in a recent study by the Hyderabad-based NGO Yugantar. The research highlights that while India's Unified Payments Interface (UPI) has grown rapidly, many women, particularly those from low-income backgrounds and the informal sector, are still excluded from its benefits. The study, published in CSI Transactions on ICT by Springer Nature, examined the impact of Yugantar’s Digital Budget Rani programme, which engaged 40,552 women across 13 districts in Telangana and two in Andhra Pradesh between 2023 and 2025. The initiative partnered with local organizations such as the Telangana Domestic Workers’ Union, the Greater Hyderabad Municipal Corporation, and the Mission for the Elimination of Rural Poverty. The study combined both qualitative and quantitative data gathered during the programme’s execution. It identified three distinct categories of women based on their interaction with UPI. One group consists of active users, typically younger women with higher educational attainment and better access to technology. The other two groups include women who either cannot adopt UPI due to structural and social barriers or choose not to use it because of concerns related to financial autonomy and distrust in digital systems. The researchers emphasized that non-adoption should not be viewed solely as a result of limited access or technological illiteracy. According to the study, providing women with smartphones or digital payment tools alone is insufficient to ensure widespread adoption. Their engagement with UPI is influenced by factors such as confidence in using technology, decision-making power in financial matters, prevailing social norms, and community support structures. This insight comes amid the rapid growth of UPI, which accounted for approximately 70% of all digital payments in India during 2023–24, up from just 17% in 2018–19. Total digital payment transactions grew by 46%, reaching ₹18,737 crore in 2023–24, compared to ₹8,839 crore in 2021–22, according to a statement from the Ministry of Finance dated March 11, 2025. Despite the overall progress, the study found that the advantages of this digital transformation have not been evenly distributed. Marginalized women, especially those from rural areas and lower socio-economic backgrounds, continue to lag behind. To address this gap, the Digital Budget Rani programme introduced two methods of accessing UPI: traditional smartphone-based applications and 123PAY, an interactive voice response (IVR)-based system. The latter proved particularly useful for women who struggled with app-based payments, offering a more accessible alternative. The programme demonstrated that designing technology around user needs can bridge some of the existing divides. However, challenges remain. Many participants expressed concerns about the security of digital transactions, the complexity of navigating mobile interfaces, and the fear of losing control over their finances. Some women also cited cultural expectations that discourage them from managing money independently. These issues underscore the need for targeted interventions that go beyond mere technological access. The findings align with observations made by international leaders visiting India, including French President Emmanuel Macron and Spanish Prime Minister Pedro Sánchez, who have personally experienced UPI during their stays. While such high-profile endorsements highlight the system’s potential, they also draw attention to the disparities in its usage. As India continues to expand its digital infrastructure, ensuring inclusive access for all segments of society, including women in marginalized communities, remains a critical challenge.