Progress and Challenges in Digitalisation of Financial Inclusion: The Indian Context

Abstract

This study examines the influence of digital innovations on financial
inclusion in India. Digital technologies, including mobile banking, fintech
solutions, and digital payment systems, have the potential to revolutionize
financial services and expand access to underserved populations. In this study,
an attempt is made to analyse the role of digital innovations and evaluate their
effectiveness in promoting financial inclusion in the Indian context and assess
its implications. Different digital techniques introduced in the financial sector
are explored along with advantages and important technological and
infrastructure barriers that adversely affect the efficiency level of such
digitalisation. The study analyses the secondary data with the help of a simple
percentage method to give observations on progress of digital financial inclusion
in India. The inferences drawn and observations made in this study help to have
a deeper understanding of the benefits and challenges associated with digital
innovations in providing financial services, give insights for policymakers and
microfinance institutions. On the basis of observations made in the study, policy
implications and suggestions to improve the effectiveness and outreach of digital
financial services are also given so as to attain the goal of financial inclusion and
sustainability.