Financial Inclusion in Indiavia Mobile Phone Technology: Opportunities and Challenges

Abstract

It is a paradox that more than one-third of its population is excluded from the formal financial system in a globalized world. According to the findings, appropriate financial services can help increase household welfare and boost small businesses. Various factors have been blamed for the financial isolation. The conventional financial system has several inherent limitations, leading to an unserved population. Technology is critical to financial inclusion since it is the only method to lower costs and dramatically reach people. However, not all technologies are suited for financial inclusion due to accessibility, affordability, security, and privacy concerns. Recently, mobile phone innovation has arisen as the most encouraging, promising and well-suited conduit for financial inclusion. In nations where the majority of the population is unserved, digital currency and mobile technology can cater to the needs of small transactions at an affordable cost. It can also help reduce time accurately and make faster transactions in bulk. The Indian government has found multiple ways to advance mobile banking and build admittance to credit and monetary administrations to the maximum potential users and non-users. Adopting and successfully implementing mobile technologies face numerous hurdles, particularly in rural areas. The study motive is to explore the possibilities of mobile phone technology in accelerating the reach of financial inclusion to the broadest possible audience in India. This paper also sheds light on opportunities, challenges, solutions and policy options in floating digital currency and mobile technology for financial inclusion.