Include more women under MGNREGS to get them into formal banking system: SBI Economists

In states where women participation in MGNREGS is low, women beneficiaries in PMJDY are also low, the report said (Representative Image)

Economists at SBI on Monday asked for more women to be included under the Mahatma Gandhi National Rural Employment Guarantee Scheme to deepen their inclusion in the formal banking system. The SBI economists said southern states were better-performing ones on women participation under MGNREGS in FY23, and also women's percentage in the beneficiaries under Pradhan Mantri Jan Dhan Yojana.

In states where women participation in MGNREGS is low, women beneficiaries in PMJDY are also low, the report said, adding that this indicates a positive correlation between two modes of women empowerment.

"Thus, efforts should be made to include more women in MGNREGS so that all women are brought under the formal banking system," the SBI economists said.

Overall the per capita women deposits increased by Rs 4,618 in the last five years, the report said quoting official data, and added that rural areas are a major source of deposits by women.

Share of women deposits in overall rural deposits has increased in post-pandemic period to 30 per cent in FY23 from 25 per cent in FY19, it said.

The regional rural banks (RRBs) continue to be the major contributors in increased women deposits share, it said, pointing out that women deposits account for 50 per cent share in incremental deposits in RRBs during FY19 and FY23 as against the national average at 41 per cent in rural areas.