Digital and Internet Finance: Future of India's Financial Inclusion Plan

8 Pages Posted: 24 Jul 2018

Date Written: July 2, 2018


As per Global Findex Database 2014, ownership of bank accounts in India increased 35 (2011) to 53 (2014) percent. The Government of India, Reserve Bank of India and various agencies are making concerted efforts to promote financial inclusion. In efforts to bring unbanked people in to mainstream banking, several policy measures and schemes are launched over a period. In pre-internet era, structural changes were brought through schemes like Micro Finance Self Help Group Model (1992, Kisan Credit Card (1998) and No Frill Accounts (2004). After internet became ubiquitous, schemes like Business Correspondents and Business Facilitators (2006, 2009) Swabhimaan (2011), ATM and White label ATMs, electronic payment transfers through NEFT and RTGS, Pradhan Mantri Jan Dhan Yojana were brought into action. A mini ATM, Point of Sale Machine and Aadhaar-enabled payment system (AEPS) makes digital money more accessible and user-friendly. Incentives are offered for online transactions and transit to less cash economy. This paper discusses issues, challenges and solution specific to digital future in India.

Keywords: Digital Banking, Mobile Banking, Digital Economy, India, Developed Nations

JEL Classification: G18

Suggested Citation

Sapovadia, Vrajlal K., Digital and Internet Finance: Future of India's Financial Inclusion Plan (July 2, 2018). Available at SSRN: or

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