Context:
A new government survey, the Comprehensive Modular Survey: Telecom, 2025 was recently conducted by the Ministry of Statistics and Programme Implementation (MoSPI). The survey has revealed a sharp rise in the number of rural Indians, particularly women, engaging in online banking.
Key findings of the survey:
- Rural Women at the Forefront of Growth: Survey shows a surge in the proportion of rural women capable of conducting online banking transactions. As of the first quarter of 2025, 30.0% of rural females aged 15 and above reported the ability to perform online banking—up from 17.1% in 2022-23.
- The increase is even more pronounced among younger women. Among females aged 15–24 in rural areas, 51.4% reported online banking capability, more than doubling from 19.6% in 2022-23.
- The increase is even more pronounced among younger women. Among females aged 15–24 in rural areas, 51.4% reported online banking capability, more than doubling from 19.6% in 2022-23.
- Rural Men Also Adopting Fast: The trend is not exclusive to women. Young rural men (15–24 years) saw a massive jump in online banking capability as well—from 40.2% in 2022-23 to 73.3% in 2025.
Urban vs. Rural: A Converging Digital Divide:
- While online banking has been more widespread in urban areas, the pace of growth is now faster in rural regions. In urban India, 62.4% of individuals aged 15 and above reported engaging in online banking in early 2025, up from 50.6% two years earlier.
- At a national level, 48.9% of Indians aged 15+ reported using online banking, compared to 37.8% in 2022-23, showing substantial overall progress.
UPI Leads in digital payments:
A key driver of this digital leap has been the Unified Payments Interface (UPI). The survey found that:
- 86.7% of rural users used only UPI for online banking transactions.
- In urban areas, 74.4% relied solely on UPI.
- Just 18.0% used a mix of UPI, internet banking, and other digital platforms.
Reasons for such tremendous growth:
The rise in digital banking is underpinned by the widespread usage of mobile phones and internet access:
- 70.2% owned a mobile phone—81.2% in urban and 64.6% in rural areas.
- Among mobile owners, 79.9% had smartphones, with 90%+ smartphone penetration among those under 29 years across both urban and rural India.
Internet usage has grown significantly too:
- Among rural females, internet use rose from 42.6% in 2022-23 to 57.6%.
- Among rural males, usage increased from 59.5% to 72.1%.
- 93% of internet users accessed it daily, primarily through mobile devices.
“UPI for Her" initiative:
The "UPI for Her" initiative, launched by the National Payments Corporation of India (NPCI) and Women's World Banking (WWB), aims to bring 200 million women into India's digital economy. This program seeks to address the specific barriers women face in adopting digital payments, promoting financial inclusion and economic empowerment.
Policy Implications
The findings are a strong endorsement of the Indian government’s long-standing push toward financial inclusion and digital empowerment. The surge in rural online banking, especially among women, aligns with national goals of bridging the urban-rural and gender digital divides.
Conclusion
The latest data paints a hopeful picture of a rapidly digitizing rural India, where young women are emerging as key participants in the digital economy. If sustained, these trends could reshape India’s socio-economic fabric in the years to come.
