In 2024, women from how many states accounted for 49% of all self-monitoring female borrowers in India?
- AOption (a)
3
- BOption (b)
5
- COption (c)
8
- DOption (d)
11
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Correct answer
3
Why this answer is correct
The correct answer is Option 1.
Key Points
- 49% of self-monitoring female borrowers in India in 2024 were concentrated in women from only 3 states, highlighting the regional disparity in access to financial opportunities for women.
- These 3 states likely contributed significantly due to factors such as higher microfinance penetration, established self-help group (SHG) networks, and better financial literacy programs targeting women.
- The dominance of these states in terms of women's participation in self-monitoring borrowing could also be attributed to state-specific policies promoting microfinance and small-scale entrepreneurship.
- Other options (5, 8, 11, and more states) are incorrect as they overestimate the number of states contributing to the specified percentage (49%) of self-monitoring female borrowers, based on the available data for 2024.
- This statistic underscores the need to expand financial inclusion efforts to other states to ensure equitable participation by women nationwide.
Additional Information
- Self-monitoring female borrowers:
- Women borrowers who actively monitor their financial activities and repayments are often part of microfinance institutions (MFIs) or self-help groups (SHGs).
- These systems promote empowerment, financial independence, and entrepreneurship among women, particularly in rural and semi-urban areas.
- Self-monitoring ensures better repayment rates and encourages disciplined financial behavior.
- Regional disparity in financial inclusion:
- Some states, such as Karnataka, Tamil Nadu, and West Bengal (examples), have been early adopters of microfinance initiatives, resulting in higher participation.
- Other states may lag due to lack of infrastructure, financial literacy, or cultural barriers.
- This highlights the need for targeted interventions and support to less-performing states to ensure balanced growth.
- Role of microfinance and SHGs:
- Microfinance and SHGs play a critical role in alleviating poverty, especially among women, by providing small loans for entrepreneurship and other income-generating activities.
- They also foster social cohesion and help women build networks for mutual support and learning.
- Government initiatives:
- Programs like Deendayal Antyodaya Yojana - National Rural Livelihoods Mission (DAY-NRLM) are aimed at promoting financial inclusion and strengthening SHGs.
- Other initiatives, such as Jan Dhan Yojana, aim to improve access to banking and financial services for marginalized groups, including women.
Important Points
- Microfinance penetration: States with a higher penetration of microfinance institutions often see greater participation of women in borrowing activities, as these institutions primarily target women borrowers.
- Financial literacy programs: Effective financial literacy campaigns improve women's confidence in managing loans and participating in formal financial systems.
- Policy support: State-specific schemes promoting women entrepreneurs and SHGs contribute significantly to financial inclusion.
- Challenges: Despite progress, many women still face barriers such as limited access to credit, cultural restrictions, and lack of awareness about financial products.