(ISSN : 0970 – 9029)

Impact of Digital Finance on Financial Inclusion

Journal Name:
Journal of Accounting and Finance
Vol. 33 - No. 1
Author Name Organization Designation
Shabana Khan Dept. of Economics, Aligar Muslim University, Aligarh, UP, India PhD Scholar

Digital finance and financial inclusion has several benefits to financial services users, digital finance providers, governments and the economy; notwithstanding, a number of issues still persist which if addressed can make digital finance work better for individuals, businesses and governments. The digital finance issues discussed in this article are relevant for the on-going debate and country-level projects directed at greater financial inclusion via digital finance in developing and emerging economies. Financial services are the lifeblood of an economy. For the equitable and sustainable growth of the nation, a strong financial system is vital particularly for financially excluded and underserved population. Undoubtedly, the Reserve Bank of India and the  Indian government have introduced several policies that aggressively expand the reach of formal financial services. But despite these efforts, the majority of individuals and small businesses lack access to even basic savings and credit products, which hinders economic growth and perpetuates poverty. The Government has planned to use technology especially - Mobile based services in a big way to fast track financial inclusion in the country. This paper attempts to understand the concept of digital finance, the way it targets inclusive growth along with the risks involved. Focusing on digital finance, this article provides a discussion on digital finance and explores the impact of digital finance for financial inclusion.