Digital transformation in public infrastructure: A catalyst for financial inclusion in India
DOI:
https://doi.org/10.64171/JSRD.5.S1.54-58Keywords:
Digital transformation, Financial Inclusion, India, JAM, PMJDY, UPIAbstract
The Financial Inclusion (FI) journey of India is driven by a powerful mix of policy innovation, digital revolution and community outreach. Technology has brought financial services closer to people in last 11 years, especially in rural and remote areas. This growth can be seen in the rising rate of Financial Inclusion Index of Reserve Bank of India (RBI) from 53.9 in March 2021 to 67.0 in March 2025 and contribution of digital economy in national income with 11.74% in 2022–23 to 13.42% by 2024–25. The digital public infrastructure in India has transformed access to financial services. In 2025, PMJDY accounts crossed 55.98 crore and Rs.24.03 lakh crore payments by UPI while poverty rate decline from 29.17% in 2013-14 to 11.28% in 2022-23 in India. From direct transfers to low-cost investments, every step is bringing banking, credit, saving closer to every citizen and builds a secure tomorrow. Even after years of efforts, many people in India are still excluded from formal financial system due to challenges in digital financial inclusion. This study explores financial inclusion, government digital initiatives, their benefits and challenges, and suggests ways to promote safe and inclusive digital finance.
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