Banks, fintechs and insurers adapt policies to expand access for LGBTQIA+ community, say experts

Seven years after the Supreme Court’s landmark judgment decriminalising same-sex relations, LGBTQIA+ individuals are seeing growing — though still uneven — recognition of their financial rights.

Government advisories, regulatory nudges, and corporate initiatives are converging to improve access to financial products, workplace benefits, and customer services for members of the LGBTQIA+ community.

Policy measures at the government level

The Reserve Bank of India (RBI) directed banks to include a ‘third gender’ option in forms — a move particularly significant for transgender and non-binary individuals, acknowledging that gender extends beyond the male/female binary.

The Finance Ministry has clarified that same-sex and non-heteronormative partners can open joint accounts and nominate each other as beneficiaries.

Several state governments have also launched targeted welfare schemes for transgender persons, linking benefits with banking and credit systems.

“The government has set the tone by recognising non-binary identities and designing targeted welfare schemes. What we need next is a sharper financial lens, with equitable access to credit and capital for the LGBTQIA+ community,” said Bhavya Misra, CHRO, Godrej Capital.

Banks and financial institutions

Banks are gradually aligning systems with these directions. Axis Bank’s #ComeAsYouAre initiative, for instance, allows life partners — regardless of gender — to open joint accounts and nominate each other. Customers may also opt for the honorific Mx. in official forms.

“Inclusion is part of our cultural DNA. For the LGBTQIA+ community, we translated intent into action through policies that recognise life partners and allow them to nominate each other,” said Harish Iyer, SVP and Head – Diversity, Equity & Inclusion, Axis Bank.

According to Alpa Shah, finance coach and social entrepreneur, implementation still varies widely across bank branches.

“Finance Ministry clarifications have encouraged banks to accept queer couples for joint operations, though experiences remain uneven. Staff sensitisation is critical to make inclusion consistent across the system,” she said.

Insurance and workplace benefits

Corporates are also reshaping employee benefits. Many large employers now extend medical insurance to same-sex partners, cover gender-affirming care, and adopt gender-neutral parental leave policies.

“At Godrej Capital, our policies include support for gender affirmation surgeries, hormonal treatments, and counselling. These steps reflect a broader trend across industries to design equitable and supportive workplaces,” said Misra.

Shah said while progressive firms are leading, “uniformity across sectors and smaller companies has not yet been achieved.”

Role of FinTechs

FinTechs and smaller financial institutions are experimenting with solutions tailored for LGBTQIA+ customers — including inclusive onboarding, privacy-first platforms, and products that reflect diverse households.

ESAF Small Finance Bank, for example, introduced a “Rainbow” account for LGBTQIA+ customers.

“Innovation thrives where traditional systems leave gaps. But the pace of change must be faster. Financial inclusion cannot rest on isolated efforts; it requires like-minded organisations to come together and create lasting impact,” said Misra.

Shah noted that global examples, such as queer-focused neobanks offering chosen-name debit cards and transition-related financing, provide a model that Indian firms are beginning to explore.

From inclusion to influence

Industry leaders say the narrative is beginning to shift from basic access to active recognition.

“As we mark the seventh anniversary of the Supreme Court verdict, we’re moving from inclusion to influence,” said Iyer.

He added that Axis Bank’s Pink Capital initiative is aimed at recognising the LGBTQIA+ community as a vibrant consumer and entrepreneur segment.

Experts agree that meaningful progress will depend on sustained policy support, consistency at the branch level, and deeper collaboration across the financial ecosystem. They also stress the need for an intersectional lens — recognising that class, caste, geography, and disability all influence how LGBTQIA+ individuals access financial services.

“Inclusion isn’t a one-time policy. It’s a practice. It needs to evolve with people’s lives,” Iyer said.