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FINTECH AND FINANCIAL INCLUSION IN INDIA: ASSESSING THE DIGITAL TRANSFORMATION OF THE INDIAN FINANCIAL SYSTEM Dr. Javed Iqbal Tramboo
Bulletin of Engineering Science, Technology and Industry Vol. 4 No. 1 (2026): March
Publisher : PT. Radja Intercontinental Publishing

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Abstract

India’s financial system experienced a major shift between 2014 and 2020 as policy initiatives and technology converged to expand formal access. The Pradhan Mantri Jan Dhan Yojana, Aadhaar-based identification, and the Unified Payments Interface together created a digital public infrastructure that allowed banks and FinTech firms to reach previously excluded populations at lower cost. Adult account ownership rose from about 53 per cent in 2014 to nearly 80 per cent by 2017, while the number of Jan Dhan accounts climbed to roughly 38 crore by early 2020. Digital payment volumes grew sharply after the 2016 demonetisation and the launch of UPI. FinTech companies, numbering more than 1,200 by 2020, played a central role in payments, alternative credit assessment, and distribution of simple insurance and investment products. Despite these gains, many accounts remained lightly used, formal credit for micro-enterprises stayed limited, and digital literacy and connectivity gaps persisted, especially in rural areas. This paper reviews the policy architecture, the growth of the FinTech ecosystem, the measurable progress in access and usage, and the constraints that remained visible up to 2020. It concludes that India built a strong foundation for digital financial inclusion, yet sustained effort was still required to convert account ownership into active, meaningful participation in the formal financial system.
DIGITAL TRANSFORMATION AND INCLUSIVE ECONOMIC DEVELOPMENT: EXAMINING THE ROLE OF TECHNOLOGY IN REDUCING SOCIO-ECONOMIC INEQUALITIES Dr. Javed Iqbal Tramboo
International Journal of Economic, Business, Accounting, Agriculture Management and Sharia Administration (IJEBAS) Vol. 6 No. 5 (2026): October (ON-PROGRESS)
Publisher : CV. Radja Publika

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Abstract

Digital transformation has become one of the defining forces of economic change in the twenty-first century. This paper examines how the spread of digital technologies broadband internet, mobile connectivity, digital financial services, e-commerce platforms, and government digital systems affects socio-economic inequalities and whether these technologies can support more inclusive patterns of development. Drawing on evidence from World Bank, Asian Development Bank, IMF, and academic studies covering the period roughly 2000–2025, the analysis shows that digital tools can raise productivity, expand market access for small producers and rural households, improve delivery of public services, and increase financial inclusion. At the same time, uneven access, skills gaps, and differences in complementary institutions mean that digitalisation sometimes reinforces existing divides between high- and low-income countries, urban and rural areas, and skilled and less-skilled workers. Key findings include the observation that a 10 percent rise in broadband penetration has been associated with roughly 1.4 percent higher GDP growth in developing economies, that mobile broadband expansion has reduced extreme poverty in places such as Nigeria, and that digital payments and identification systems can improve the reach and efficiency of social transfers. The paper argues that technology alone does not guarantee inclusiveness. Outcomes depend heavily on deliberate policies that expand affordable access, build digital skills, strengthen regulation, and ensure that complementary investments in education, infrastructure, and institutions accompany technological change. Without such measures, digital transformation risks becoming another source of divergence rather than a force for shared prosperity.