Exploring the Financial Behaviors of Rural Women Entrepreneurs

Despite the surge in digital banking services, a recent survey by DBS Bank India and Haqdarshak reveals that nearly 90% of rural women in India still favor in-person banking. This preference persists even as a growing number of women are saving a portion of their income, indicating a significant reliance on traditional banking methods.

Insights into Savings and Investment Habits

The survey, conducted across Madhya Pradesh, Maharashtra, and Rajasthan, found that 90% of rural women entrepreneurs save part of their income monthly, with a majority opting for bank deposits. However, only a small fraction uses digital banking services for business transactions, highlighting a gap in digital financial literacy.

Challenges and Opportunities Ahead

Funding for businesses primarily comes from personal savings and loans, with a significant reliance on social networks and SHGs. The survey underscores the need for improved outreach and awareness of government credit schemes and digital banking services to support the growth of women entrepreneurship in rural India.