Published Paper Details:

Financial inclusion is the process of ensuring access to financial services and credit for all, especially the economically underprivileged. A large segment of India's population are left out of the ambit of banking services due to plethora of issues which exists in the conventional banking system. It is ironical to state that more than one third of the total population in underdeveloped countries are still excluded from the ambit of banking services. 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. From past almost one decade, 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. Financial inclusion has been a cornerstone of economic development in India. Digital banking, leveraging technology to deliver banking services through electronic platforms, plays a transformative role in this regard. This research report explores how digital banking contributes to financial inclusion, focusing on its impact in rural India. Digital banking encompasses a range of services, including online banking, mobile banking, digital wallets and micro-ATMs, which have drastically simplified access to financial services. The advent of the internet, smartphones and government-led initiatives like Digital India have fueled the adoption of digital banking. Digital banking allows people in remote areas to access financial services without visiting physical bank branches, overcoming barriers such as distance and time constraints. Services like Aadhaar-enabled Payment Systems (AePS) and mobile banking facilitate secure, instant transactions, even in rural areas. 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.