The Contribution of Financial Inclusion and Digital Finance to Economic Development of India

Abstract

Financial inclusion and digital finance are already important aspects of the financial systems of many nations. Beginning in the early 21st century, the researchers concentrate on developing the system for financial inclusion and digital finance. This paper highlights the significance of digital finance and financial inclusion to economic growth by summarizing the three major effects on small, micro enterprises, and common residents based on the existing study. In addition to boosting the quality of residents' consumption, digital finance can boost the efficiency of the financial market by increasing the success rate of two-way selection of both sides. This paper also highlights the increased risks that digital finance and financial inclusion will bring to the financial industry, and further research is needed to determine how to make digital finance less hazardous and more stable.