THE ROLE OF DIGITAL PAYMENT ECOSYSTEMS IN ENHANCING FINANCIAL INCLUSION IN RURAL INDIA
DOI:
https://doi.org/10.65009/fnp6wg06Keywords:
Digital Payment Ecosystem, Financial Inclusion, Rural India, UPI, Mobile Banking, FinTech,,Abstract
Abstract
Digital payment ecosystems have emerged as a transformative tool in advancing financial inclusion
in rural India. Over the past decade, initiatives such as the Pradhan Mantri Jan Dhan Yojana
(PMJDY), Unified Payments Interface (UPI), and mobile banking applications have enabled rural
households to access financial services with greater ease. This research paper uses secondary data
from government reports, industry analyses, and scholarly articles to examine the adoption trends
of digital payments in rural regions and their impact on financial inclusion metrics. The study finds
that digital payments enhance banking penetration, reduce dependence on cash, and facilitate
microcredit access. However, challenges such as limited digital literacy, infrastructure gaps, and
socio-cultural barriers remain. The paper concludes with recommendations for policymakers and
financial institutions to accelerate digital payment adoption and deepen financial inclusion in rural
India.
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