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.