Published Paper Details:

It is ironical to state that even in 21st century, more than one third of the total population in underdeveloped countries are still excluded from the banking services ambit. Many research studies conducted in this direction infer that, bringing those financially excluded population, under the banking ambit, results in not only individual welfare and results in social welfare too. Since 2010, the G-20 countries 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 (GPFI, 2010). Today, the relevance of digital finance and financial inclusion for poverty reduction and economic growth is attracting higher attention of policy makers and academicians, primarily because of the number of issues that persist in the conventional banking system, due to which a large segment of population are unserved, which, if addressed can make digital finance work better for individuals, businesses, governments and the economy. Digital currency and mobile technology can cater the needs of small transaction at an affordable cost. It can also help in reducing time, more accurately and make faster transactions in bulk. Digital finance and financial inclusion bring multi faceted benefits to financial service users, digital finance providers, governments and the economy such as increasing access to finance among poor individuals, reducing the cost of financial intermediation for banks and Fintech providers and increasing aggregate expenditure for governments. One area where the disparity is quite pervasive and is receiving increased attention is digital financial inclusion, financial data inclusion and digital finance. The relationship between these and the issues they pose for financial inclusion have received very little attention in the past. Therefore, this study examines the impact of digital finance for financial inclusion and financial system stability. This research article provides a detailed discussion on digital finance and explores the impact of digital finance for financial inclusion and financial system stability - an issue which has not been addressed in the earlier studies.