Digital Finance as a Tool for Financial Inclusion a Study with Special Reference to Delhi NCR

Abstract

Financial inclusion is emerging as one of the major key enablers of eradicating poverty, ending hunger, gender equality, promoting economic growth and supporting the secondary sectors, etc. The success of digital finance in achieving higher financial inclusion in developing countries has led to a shift towards achieving higher financial inclusion through digital finance. Thus in the wake of digital finance, digital financial inclusion has gained prominence. Therefore, it becomes necessary to identify the factors promoting digital financial inclusion. newlineThis study is an attempt to understand the perception of people towards digital financial inclusion and helps in identifying the factors contributing to digital financial inclusion. This study will help the RBI and policymakers in understanding the role of perception and perceived risk in enhancing the status of digital financial inclusion in India. newlineThis study finds that access, usage and quality of the debit card, credit card, digital banking and digital financial services significantly predicts the digital financial inclusion achieved through debit card, credit card, digital banking and digital financial services respectively. Amongst the three factors, Quality has a higher impact on digital financial inclusion followed by Usage and Access . It was discovered in the present study that there existed a very strong positive relationship between PDC (perception of people towards debit card) and DFIDC (digital financial inclusion achieved through debit card), PCC (perception of people towards credit card) and DFICC (digital financial inclusion achieved through credit card), PDB (perception of people towards digital banking) and DFIDB (digital financial inclusion achieved through digital banking) and PDFS (perception of people towards digital financial services) and DFIDFS (digital financial inclusion achieved through digital financial services). This study further indicates that there is a significant difference in perceived usage, perceived ease of use and perceived benefit of......