Financial Inclusion in India Amid Covid-19 Pandemic: Recent Trends and Determinants

Financial inclusion is a very important issue in developing countries like India. It is identified as one of the seventeen sustainable development goals (SDGs) which enables in poverty reduction and promoting economic development. Over the past few years, with a major shift in the policy focus towards programs on increasing financial inclusion, significant progress has been observed. The paper here examines the recent trends and determinants of financial inclusion in India amid Covid-19 pandemic, emphasizing the usage of digital payments as well as understanding the factors impacting digital payments in India. The findings reveal that age, income, and education have a significant impact on financial inclusion. It was also observed that the Covid-19 pandemic contributed to a rise in the growth of digital payments being used but females were less likely to make use of digital payment services. The issue of financial inclusion, as assessed through the ownership of a formal account, is not a significant concern in India. However, a major concern is undoubtedly the limited usage of the accounts for formal savings and credit. The policymakers should give more emphasis on measures that would expand the usage of accounts for formal savings and credit. Emphasis should also be given to enhancing the access of the females towards digital financial services.