Beyond Binaries: Determinants and Impediments of Financial Inclusion among Transgender Individuals in Delhi-NCR, India

Financial inclusion is essential for the dignity, security, and self-reliance of marginalized communities, particularly the transgender population. Despite growing interest in financial accessibility, studies focusing on the determinants and barriers of financial inclusion for transgender individuals remain limited. This study surveyed 335 transgender participants in Delhi-NCR, India, using a purposive sampling technique. Data were analyzed with descriptive statistics and a probit model to identify key factors influencing financial inclusion. Results reveal that 60 % of respondents possess formal accounts, but engagement with formal savings (45 %) and credit (4.2 %) remains limited. Education and income significantly enhance financial inclusion, with tertiary education and higher income levels positively influencing all indicators. Conversely, participation in survival economies, such as sex work and begging, emerges as a critical impediment, reducing the likelihood of financial inclusion by up to 44.5 %. Barriers such as ID mismatch with gender identity (52.5 %), lack of documentation (42 %), and discrimination (17.6 %) further hinder access. The study underscores the potential of digital financial inclusion to mitigate these challenges, though adoption remains constrained by systemic barriers. The study advocates for targeted policy reforms, including financial institution sensitization, inclusion in gender budgeting, streamlined documentation, expanded digital banking infrastructure, inclusive education, and mainstream employment opportunities. Ultimately, it aims to inform policymakers and stakeholders and foster a more inclusive and equitable financial ecosystem.