Name: Niranjan Behara
Country: India

Year: 2026
Volume: Volume No: 13, Issue No: 1, Year: 2026
Page Number: 1-11
DOI: https://doi.org/10.5281/zenodo.18543444

ABSTRACT
India’s digital payments revolution has fundamentally reshaped the landscape of financial inclusion, particularly in rural areas where traditional banking infrastructure has long been sparse. The Reserve Bank of India’s Financial Inclusion Index (FI-Index) reached 67.0 in March 2025, marking a 24.3% increase since 2021, with notable gains in access, usage, and quality of financial services. This empirical study synthesises recent literature, government data, and field research to investigate the evolution and adoption of digital payment systems—especially Unified Payments Interface (UPI), mobile wallets, and Aadhaar-enabled Payment Systems (AePS)—in rural India. It examines the impact of digital payments on
access to financial services, savings behaviour, credit access, and economic empowerment, while also analysing persistent challenges such as digital literacy, infrastructure gaps, trust deficits, and gender disparities. Drawing on case studies from West Bengal and comparable states, the report offers policy recommendations for deepening financial inclusion through digital payments, emphasizing the need for targeted interventions, robust infrastructure, and inclusive design.

Keywords: Digital Payments; Financial Inclusion; Rural India; UPI; Aadhaar-enabled
Payment System; Digital Literacy