Role of Digital Finance in Financial Inclusion with Special Reference to India
Keywords:
Digital finance, Financial inclusion, PMJDY, Reserve Bank of India, UPI transactionsAbstract
With the advent of digital financial inclusion, there has been a multiplicity of innovations and tools for financial inclusion range from mobile banking platforms to microfinance solutions and digital payment systems. Such innovations have overcome geographical barriers, and they provide individuals in remote and underserved regions with financial services. Financial services need to be accessible to all individuals to promote public confidence in the financial system and encourage broader adoption of financial services and technologies. The study aims to ascertain the impact of digital finance on financial inclusion. It is based on secondary data collected from various published sources. The study analyses the growth of Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts, UPI transactions, indicators of financial inclusion and financial education, and the RBI’s Financial Inclusion Index. The findings indicate that digital financial services have provided benefits to people across different cities, with the highest number of transactions recorded in semi-urban areas.
References
Alliance for Affordable Internet. (2021). Affordability report 2021: A new strategy for universal access.
Centre for International Governance Innovation. (2019). 2019 CIGI-Ipsos global survey on Internet security and trust.
Chaddha, S., & Jain, S. (2024). Digital transformation of financial sector in India: Evolution, issues and challenges. Samriddhi, 1(2), 100–120.
Chandrasekhar, C. B., Prasad, D. A., & Chauhan, P. (2023). A study on “Digital finance and its impact on financial inclusion.” in 11th International Conference on Emerging Trends in Corporate Finance and Financial Markets (pp. 1–17).
Chatterjee, S. (2021). Women’s financial inclusion in Digital India: Need for gender thrust. Social and Political Research Foundation.
Demirguc-Kunt, A., Klapper, L., Singer, D., Ansar, S., & Hess, J. (2018). The Global Findex Database 2017: Measuring Financial Inclusion and the Fintech Revolution. Washington DC World Bank.
Economist Intelligence Unit. (2016). Global microscope 2016: The enabling environment for financial inclusion. Inter-American Development Bank.
Lauer, K., & Lyman, T. (2015). Digital financial inclusion. CGAP.
Ozili, P. K. (2025). Digital financial inclusion research and developments around the world. In N. Apergis (Ed.), Encyclopedia of monetary policy, financial markets and banking (Vol. 4, pp. 316–322). Elsevier.
P. S., M., & Supriya, R. (2023). An empirical association between financial inclusion and economic development. SSRN Electronic Journal.
Pew Research Center. (2021). Internet/broadband fact sheet.
Rana, M. K. (2025). A case study of the digital and financial inclusion revolution in India. International Journal of Research Publication and Reviews, 6(8), 1433–1436.
Shivakumar, H. N., Nirmala, A. C., & Mamatha, S. (2024). Impact of digital finance on financial inclusion and stability in rural India. International Journal of Creative Research Thoughts, 12(11), 458–463.
Soni, S., & Singh, B. (2023). A study on digital financial inclusion in India. Journal of Emerging Technologies and Innovative Research, 10(9), 716–720.
Sumalatha, D. (2025). The impact of digital finance in financial inclusion. International Journal of Research in Commerce and Management Studies, 7(3), 174–181.
