Article Information

Authors GEETHA. J. R.
Article Type Research Article
Language English
Journal North Asian International Research Journal of Social Science & Humanities
ISSN 2454-9827
Volume 11
Issue 10
Pages 39-55
Publication Year 2025
Publication Date October 01, 2025
DOI URL https://doiglobal.org/10.2025/NAIRJCSSH.014

Abstract

Digital financial inclusion has emerged as an important component of India's economic transformation. The expansion of bank accounts, mobile connectivity, digital payment systems, financial technology platforms, and direct benefit transfer mechanisms has changed the manner in which households and businesses interact with the formal financial system. This paper examines the relationship between digital financial inclusion and economic development in India, with particular attention to access to financial services, digital payments, household welfare, small enterprises, rural development, and public policy. The study adopts a descriptive and analytical approach based primarily on secondary data and the existing economic literature. It argues that digital financial inclusion can contribute to economic development by reducing transaction costs, improving transparency, facilitating savings and credit, strengthening welfare delivery, and expanding economic opportunities for previously underserved populations. At the same time, unequal digital literacy, inadequate infrastructure, cybersecurity risks, financial fraud, gender disparities, and regional inequalities continue to restrict its benefits. The paper concludes that digitalisation should complement rather than substitute conventional financial inclusion. Sustainable progress requires reliable digital infrastructure, consumer protection, financial literacy, accessible banking institutions, responsible fintech innovation, and policies designed around the needs of vulnerable and low-income populations.

Keywords

Digital Financial Inclusion Economic Development Digital Payments Financial Technology

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DOI: 10.2025/NAIRJCSSH.014

References

1. DemirgΓΌΓ§-Kunt, A., Klapper, L., Singer, D., Ansar, S., & Hess, J. (2018). The Global Findex Database 2017: Measuring financial inclusion and the fintech revolution. World Bank.
2. Government of India. (Various years). Economic Survey. Ministry of Finance, Government of India.
3. International Monetary Fund. (Various years). Financial Access Survey. IMF.
4. Klapper, L., El-Zoghbi, M., & Hess, J. (2016). Achieving the Sustainable Development Goals: The role of financial inclusion. CGAP.
5. National Payments Corporation of India. (Various years). UPI product statistics and payment system information. NPCI.

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Recommended Citation

GEETHA. J. R. (2025). DIGITAL FINANCIAL INCLUSION AND ECONOMIC DEVELOPMENT IN INDIA: OPPORTUNITIES, CHALLENGES AND POLICY PERSPECTIVES. North Asian International Research Journal of Social Science & Humanities. DOI: https://doiglobal.org/10.2025/NAIRJCSSH.014

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