When asked about domestic violence, an average person typically thinks of violence of a physical and sexual nature, especially in the context of intimate partner violence. However, the same amount of interest is not conferred on economic abuse, a significantly more insidious manner of abuse that is usually invisible in the way it operates. This is not unduly surprising, given that the most common images of violence against women, children, and queer persons in mainstream society are in the physical and/or sexual context. While Indian law recognises what is termed as “economic abuse” in the special legislation against domestic violence — the Protection of Women from Domestic Violence Act, 2005 (PWDV Act) — violence or abuse in the economic context does not form part of the public consciousness in the same manner as intimate partner violence of a sexual and physical nature does.
Often, a common question asked to women in the context of domestic violence is if the situation was so bad that is, violent and abusive, then why didn’t the woman just leave? Apart from psychological, and emotional reasons and coercive control that perpetrators often exert, economic, financial and material barriers are crucial considerations for survivors trying to leave abusive situations.
Under the PWDV Act, economic abuse is defined as the deprivation of all or any economic or financial resources to which the aggrieved person is entitled under any law. The law recognises that prohibition or restriction to continued access to resources or facilities which the aggrieved woman is entitled to use is economic abuse as well. Further, the disposal of household effects, any alienation of assets whether movable or immovable, valuables or other property in which the aggrieved woman has an interest is also included under the meaning of economic abuse. Specific to the Indian context, economic abuse also brings up related issues such as dowry and stridhan.
Courts have held that deprivation of economic or financial resources or stridhan amounts to domestic violence under the PWDV Act. Further, under section 18 of the Act, which provides for protection orders, a protection order can be passed in favour of the aggrieved woman prohibiting the alienation of any assets, operating bank lockers or bank accounts, regardless of single or joint ownership, without the leave of the Magistrate. This also includes the aggrieved woman’s stridhan or any other property held either jointly or separately by both parties.
Historically, in Indian families, women’s access to economic and financial resources has been limited, and often controlled by men. Further, certain actions performed by men that are indicators of economic abuse, unfortunately, have a certain degree of socio-cultural acceptance, and are unlikely to be immediately deemed as abusive acts in patriarchal families and structures. These include prohibiting women from working outside the home and accessing the job market, or insisting that women quit their jobs after getting married, the husband or the father-in-law controlling the salary earned by the wife or daughter-in-law respectively, and complete decision-making power over the family’s finances, to name a few. All of this diminishes the woman’s control over her finances and consequently her economic status.
In October 2022, a survey conducted by Tata AIA, a leading Indian insurance company, revealed that 59 per cent of working women do not make their own financial decisions, indicating the extent of financial dependency of Indian women. Although this is undoubtedly a worrying statistic, it hasn’t raised the concern that it ought to have. The impact of economic violence engulfs significant aspects of the lives of vulnerable persons, especially women. Economic violence holds back women from being truly independent, obstructs their ability to take decisions regarding their lives, and is frequently a major contributing factor in their inability to leave abusive situations, or separate themselves from their abuser.
Economic abuse has been recognised as a form of domestic violence in many other jurisdictions as well, including the United Kingdom (UK) (under the recently amended Domestic Abuse Act, 2021), Canada (by including the term “financial abuse” in the definition of “family violence” in the amended Divorce Act), and Australia.
In 2021, UK Finance, the industry body for the banking and finance industry in the country, released its 2021 Financial Abuse Code, which laid down principles designed to provide guidance on how to support victim-survivors of financial and economic abuse. Additionally, Financial Conduct Authority (FCA), the British conduct regulator for the financial services industry provides guidance on the fair treatment of vulnerable customers, which recognises domestic abuse (including economic control) as a life event that is associated with being a driver of vulnerability. These are tools and systems that support survivors apart from the law and ought to be considered in India as well.
Due to increased efforts by the government by way of introduction of schemes such as the Pradhan Mantri Jan Dhan Yojana (PMJDY) and the Direct Benefit Transfer scheme, an increasing number of women have access to a bank account and banking services for the first time (about 56 per cent of PMJDY accounts being owned by women according to data from the Ministry of Finance, as of August 2022). Appropriate training and support from the banking industry that helps banking professionals recognise signs of financial abuse and assist victims would go a long way in providing much-needed support to women looking to leave abusive situations.
Economic abuse against women needs to be understood in the larger social context which is dictated by a deep-seated patriarchal ideology. Changing notions about masculine gender roles alongside social attitudes with respect to men’s control of the family’s financial resources is critical to bring about change at a larger social level. Along with that supporting women’s economic independence through advocating for their right to work outside the home and make their own financial choices is needed.
Apart from legal and policy interventions, greater awareness and education among women are key to combatting economic abuse. Promoting women’s financial literacy and addressing the social norms and systemic barriers which dictate women’s relationship with work, money, and managing finances within the familial system in India are crucial to make headway in fighting against economic abuse.
The writer is a Mumbai-based lawyer
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