The Effect of Digital Finance on Enhancing Financial Inclusion in Sikkim

Abstract

The practice of guaranteeing vulnerable groups, such as lower income and weaker sections, affordable access to financial services and sufficient credit when needed is known as financial inclusion. Access to financial services and goods, such as bank accounts and insurance, is a component of financial inclusion.

Financial advising services, payment and remittance services etc. This gives them the opportunity to a substantial amount of bank deposit would provide for a steady deposit base, chances to save for future stability and accumulate money, invest, and get credit. There is an inclusive growth that is centred on financial inclusion these days. These are all made possible by the development of modern financial technologies. New banking technology has been introduced by several banks in response to the evolving needs of its clientele.

“Digital finance” is the term for that. Digital finance has therefore given the banking sector a new look. Electronic Finance refers to a type of financial service that may be accessed via cards, computers, smartphone, and the internet. Connected to a dependable online payment method. The potential of digital finance is to offer reasonably priced, a safe and easy banking experience. You have more control over your personal information with digital money.
The previous several years have seen a notable improvement in India’s financial inclusion. There has been an increase in Indians having bank account in recent years, the current estimate is that this number is around 80%. In India, fintech companies are becoming more and more discernible as the Government of India (GOI) keeps trying to increase the availability of financial services to the demographic segment that is underbanked. India has to work towards greater financial inclusion in order to serve the underbanked portions of the populations and offer a stable operating environment for fintech enterprises. Regression and correlation were used in this investigation along with secondary data. Collected from the RBI in order to examine this impact. The objective was to ascertain the influence of fintech and India’s financial inclusion through financial services.