Inclusive Financial System in the Indian Context

Abstract

An Inclusive financial system in India has emerged as a contemporary and critical developmental priority aimed at ensuring access to useful and affordable financial services for all individuals. It is particularly targeted at the unserved and the underserved regions of India, so that they also get the opportunity to become part of India’s inclusive development and growth. This paper aims to explore the current status, progress, persistent challenges and future endeavours of financial inclusion in India, driven by government initiatives, regulatory frameworks, and technological innovations. Key programs such as the Pradhan Mantri Jan Dhan Yojana (PMJDY), Direct Benefit Transfers (DBT), and the rise of digital payment infrastructure have significantly expanded the reach of banking and financial services. Despite notable achievements, gaps remain in financial literacy, last-mile delivery, and digital access. Financial Inclusion stands as one of the many strong pillars of inclusive development and hence is a very crucial means to the achievement of the end target of all-encompassing inclusion of Indians from different socio-economic strata and regions. This study analyzes the role of stakeholders, including public and private sectors, in deepening financial inclusion and emphasizes the need for inclusive policies, financial education, and robust digital ecosystems to bridge the remaining divide. The findings underscore financial inclusion not just as an economic enabler, but as a catalyst for social equity and sustainable growth in India.