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Why Indian banks have no room for ‘Third Gender’!


Recently, in the hallowed lecture halls of the Gujarat National Law University, a quiet but seismic truth was laid bare. Rameez Raja, a Senior Research Fellow from Aligarh Muslim University, did not just deliver a lecture; he held up a mirror to a nation that prides itself on a booming economy, only to reveal a gaping void. He showed us a class of people who are stateless in their own country, not in geography, but in the ledgers of the state. India’s transgender and eunuch communities are standing on the outside of the financial system, peering in through a glass wall they are not permitted to break.

This was not merely an academic exercise for a 15-day capacity-building program. It was a surgical strike against a comfortable lie. The lie is that social stigma is the only enemy. The truth, as Raja articulated, is far more brutal. It is a structural sabotage, a cold, bureaucratic exclusion etched into the very DNA of our policy design and financial frameworks. There are no gender-sensitive bank accounts, no inclusive credit systems, no institutional pathways to dignity. In the absence of these, the much-celebrated constitutional promises of equality are not just hollow; they are a cruel joke.

Read in Hindi: ताली और दुआओं के बीच झूलती एक व्यवस्था...!

To understand the depth of this betrayal, one must travel back in time. For in the ancient soul of India, the transgender person was not a pariah, but a deity. Picture this: the bloody fields of Kurukshetra, where the great war of the Mahabharata rages. Victory hinges on the fate of a single warrior, Shikhandi, born a woman, living as a man, whose very presence on the chariot of Arjuna makes the invincible Bhishma lay down his arms. This is not a story of marginalisation; it is a story of cosmic power.

Imagine Lord Rama, at the end of his long exile, addressing the gathered masses but asking the hijras to stay. They alone had waited for him when no one else did, and for their unwavering loyalty, he blessed them with the power to confer blessings on others, at births and weddings, a sacred role they held for centuries.

Consider the very image of divinity: Ardhanarishvara, the Lord who is half-male, half-female, a single being embodying the totality of creation. This is not a modern theory; this is the bedrock of our philosophy. The gods themselves defied the binary. From the grammar of Panini to the erotic verses of the Kamasutra, the ‘third nature’, tritiya prakriti, was a recognised, respected part of the social fabric. During the Mughal era, they were not just tolerated; they were trusted. They were the guards of the harems, the keepers of secrets, the confidantes of kings.

Then came the British. And with them, the machinery of erasure. In 1871, the colonisers, horrified by a culture they could not comprehend, stamped the Criminal Tribes Act onto the subcontinent. With the stroke of a pen, a revered community was transformed into a criminal one. They were labelled, catalogued, and policed. The word ‘eunuch’ became a slur, synonymous with ‘sodomy’ and deviance. It was a calculated act of cultural assassination, a Victorian vice-signal that poisoned the Indian mind against its own people. This stain, this imported bigotry, is what we still wash with today.

Independence came in 1947, but freedom did not arrive for the hijra community. The British left, but their legacy of prejudice stayed, embedded in the law and the public consciousness. Pushed to the fringes, they were forced into the shadows, begging, sex work, performing at the very births and weddings their ancestors had been blessed to bless. They survived, but they did not live.

Finally, in 2014, the Supreme Court of India woke up. The NALSA judgment was a thunderclap. It declared, with the force of constitutional law, that transgender people are a ‘third gender’, that their identity is not a disorder but a right. Articles 14, 15, 19, and 21—the soul of the Constitution—were now their shield. It paved the way for the repeal of the infamous Section 377 in 2018 and the passage of the Transgender Persons Act in 2019. But the gap between a courtroom in Delhi and a street corner in Aligarh is a chasm.

The numbers are not just statistics; they are a scream. Only 43 per cent of transgender people can read and write, against a national average of 74 per cent. In 2023, fewer than 1,500 were in college. In six entire states, the school system has not recorded a single transgender student. They have been erased from the classroom.

This educational void leads directly to the economic abyss. Only 34 per cent are employed. Without jobs, without bank accounts, without credit, they are invisible to the economy. They are not just poor; they are systemically impoverished. Rejected by their own families, many are cast out onto the streets as teenagers, where 31 per cent will attempt to take their own lives before they turn 20. The HIV rate among them is nearly 20 times the national average, a direct result of being denied healthcare and pushed into high-risk survival work. Between 2020 and 2023, a mere 20 cases were filed under the Trans Act designed to protect them. The police are often biased, and the community has learned that reporting a crime means inviting more punishment.

This is the landscape Rameez Raja dared to illuminate at GNLU. He spoke of the need for a financial revolution: for banks to stop seeing the world in pink and blue and start seeing it in all its colours. He called for credit systems that don't demand a traditional family structure, for jobs that don't require a gender certificate. He asked the question that should shatter the silence in every policy room in the country: How can India claim to be an economic superpower when it has financially castrated an entire community?

There are flickers of hope, like candles in a storm. The SMILE scheme, the Garima Greh shelters, Tamil Nadu's draft policy for job reservations, and the reopening of the Mitr Clinic in Telangana. These are vital, but they are bandages on a wound that requires open-heart surgery. The Supreme Court may have denied marriage equality in 2023, but it still demanded protection from violence. The battle is not over.

The story of India's transgender community is not a story of victimhood. It is a story of a glorious past violently interrupted, a resilient present fighting for survival, and a future that hangs in the balance. The question before us, as a civilisation, is whether we will honour the legacy of Shikhandi and Ardhanarishvara, or continue the colonial project of the Criminal Tribes Act. Will we let them into the banks, the schools, and the constitution of our collective conscience? Or will we keep them forever on the threshold, a beautiful, ancient people made invisible by a modern, impoverished state?