IMPACT OF DIGITAL FINANCE ON FINANCIAL INCLUSION

Abstract

Today the Indian banking sector is struggling with the issue of financial inclusion. The cost of operating to provide the facility of financial inclusion and the charges levied on users are very crucial aspects in the process of financial inclusion. Nowadays, technology can play a major role in reducing the cost of operation of providing basic financial/banking services especially in the rural and unbanked areas of the country. Financial inclusion includes an easy access to financial products and services and it also provides an adequate credit feature whenever needed by the user especially from the weaker sections and low income group people and that too at an affordable cost. Most of the banks are arrived with some new concepts of banking technology that took place in this competitive scenario of customers which is known as “Digital Finance”. Digital finance is that kind of a financial service that can be delivered through mobile phones, computers, internet, cards that are linked with a reliable digital payment system. Basically, digital financial services is very crucial for the public as it helps to boost up the security for their cash (liquid assets) and now a days it’s become more convenient as compared to keeping your cash at home instead of travelling with it. However the working procedure of digital finance includes lots of actors such as banks/financial institutions, mobile network operators, financial technological partners, agents, clients. But to make digital finance user friendly there is a need of a well designed infrastructure so that it can also provide security to the financial transactions and that too in a cost effective manner. My research is aimed to determine the impact of digital finance on financial inclusion in India. Financial inclusion is a win-win situation that can be achieved with the help of digital finance for a simple reason that it can provides greater control of customer personal finance which is an immediate requirement now a days, quick financial decision making and the ability to make and receive digital payments.