Digital Financial Services and Their Impact on Financial Inclusion among the Rural Poor

Q: How many days will it take for my paper to be published?

The review time for papers is not fixed. However, if the paper is accepted and the author completes the processing charges formalities, the paper will be published within a few working days.

Q: I would like to receive a hard copy of the journal materials. Are there any additional charges?

You can log in to the author portal and pay 500 INR to receive the hard copy materials.

Ms. Ritu

Digital Financial Services and Their Impact on Financial Inclusion among the Rural Poor

Authors: Ms. Ritu

Unique Paper ID: 183459
Volume: 12
Issue: 3
PageNo: 1595-1602

Keywords: Digital Financial Services (DFS) Financial Inclusion Rural Poor Mobile Banking UPI (Unified Payments Interface) Aadhaar-enabled Payment System (AEPS) Digital Literacy Economic Empowerment JAM Trinity FinTech Women and Finance Government Schemes Digital Divide Rural Development Financial Access.

Abstract:
The integration of digital technology into the financial ecosystem has opened new avenues for promoting inclusive economic growth, especially in rural India. This research paper investigates the impact of Digital Financial Services (DFS) on enhancing financial inclusion among the rural poor, who have traditionally remained excluded from formal financial systems due to geographical, socio-economic, and infrastructural barriers. Digital Financial Services encompass a wide range of tools and platforms, including mobile banking, UPI (Unified Payments Interface), digital wallets, Aadhaar-enabled payment systems (AEPS), internet banking, and fintech applications. These services have transformed the traditional modes of financial interaction by making financial services more accessible, affordable, and user-friendly even in remote areas. For the rural poor, who often lack access to brick-and-mortar bank branches, DFS has emerged as a vital link between them and the formal economy. This paper explores how DFS have contributed to improved access to basic financial products such as savings accounts, microcredit, insurance, remittances, and pension schemes. Case studies show that rural households, especially women and small farmers, have benefited from direct transfers under government schemes, easier loan access through mobile apps, and increased financial autonomy. The integration of the JAM (Jan Dhan-Aadhaar-Mobile) trinity has further accelerated digital inclusion. Despite its promising potential, the adoption of DFS in rural areas is still hindered by challenges such as low digital literacy, patchy internet connectivity, cyber frauds, and gender disparities in access to technology. The paper argues that addressing these barriers through policy reforms, infrastructure enhancement, and capacity-building initiatives is essential for the long-term success of digital financial inclusion. In conclusion, DFS has the potential to bridge the financial gap and empower rural populations by enhancing their participation in the formal economy. But to achieve inclusive and equitable growth, it is imperative to focus not just on access, but also on the quality, awareness, and usability of digital financial tools. The paper calls for a comprehensive and people-centric approach that includes public-private partnerships, financial literacy programs, and robust digital infrastructure to ensure that no one is left behind in the digital revolution.

Download article

email to a friend

Cite This Article

ISSN: 2349-6002
Volume: 12
Issue: 3
PageNo: 1595-1602

Digital Financial Services and Their Impact on Financial Inclusion among the Rural Poor

Available:https://ijirt.org/article?manuscript=183459

Impact Factor
8.01 (Year 2024)

UGC Approved
Journal no 47859

Join Our IPN

IJIRT Partner Network

Submit your research paper and those of your network (friends, colleagues, or peers) through your IPN account, and receive 800 INR for each paper that gets published.

Join Now