The Effect of Digital Banking Services on the Financial Autonomy and Household Decision-Making Power of Women

Abstract

Digital banking has revolutionized financial inclusion across rural India, yet its impact on women's empowerment remains underexplored. This study investigates the influence of digital financial services on rural women's financial autonomy and household decision-making power in Tiruchirappalli district, Tamil Nadu. This research provides empirical validation of financial control over household bargaining power of women in digital contexts and measures the literacy barriers specific to rural women, it also provides a district-level analysis in Tamil Nadu.  A descriptive research design was chosen to provide a comprehensive understanding of the research problem. A cross-sectional study was undertaken by collecting primary data from the sampling elements chosen from the rural blocks of Tiruchirappalli district. The population of the study comprises of 14 panchayat unions in Tiruchirappalli district. Each block was considered as a cluster and based on their population size 6 clusters were chosen, two from high, medium and low population respectively. They are Manapparai, Lalgudi, Musiri, Marungapuri, Manachanallur and Thiruverambur. 50 households were chosen from each cluster at random and the survey instrument was administered. Therefore, the sample size of the study is 300. The study focused on assessing the financial literacy, digital financial inclusion, financial autonomy and household decision-making power of women using Smart PLS-SEM 4.O software to validate the structural relationships between the construct and indicators. The study found that the results of the PLS-SEM model support the hypotheses of financial literacy with financial autonomy and financial autonomy with household decision-making power are significantly related. However, it is not statistically significant for digital financial inclusion and financial autonomy. Financial literacy turns access into real power. Therefore, policymakers should integrate literacy training before scaling digital infrastructure.