The present disclosure relates a transparent alcohol free aqueous liquid cleansing formulation comprising at least one phospholipid. The phospholipid is present in the liquid cleansing formulation in the range of 0.001 to 2% (w/w). The phospholipid present in the formulation can be selected from the group consisting of phosphatidylcholine, phosphatidylethanolamine, phosphatidic acid, and combinations thereof. The present disclosure also relates to a process of preparing the formulation as described herein.
