Digital Finance and Financial Inclusion in India: An Overview

Abstract

This article provides a discussion on conceptual framework associated with digital finance and financial inclusion in Indian context which has not been much critically addressed in the literature. Digital finance and financial inclusion has several benefits to financial services users, digital finance providers, governments and the economy. Since 2010, the G-20 and the World Bank have led the initiative for increased financial inclusion in developing countries to help reduce poverty levels in developing and emerging economies. Access to digital technologies allows a wider range of financial services such as online banking, mobile banking etc. Digital financial services can be more convenient and affordable than traditional banking services, enabling low-income and poor people in developing countries to save and borrow in the formal financial system, earn a financial return. The conceptual framework related to digital finance and financial inclusion discussed in this article are relevant for the on-going debate and country-level projects directed at greater financial inclusion via digital finance in developing and emerging economies. After analyzing the facts it can be concluded that a number of issues still persist which if addressed can make digital finance work better for financial inclusion achievement which in return benefits the individuals, businesses and governments.