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The determinants of Financial Inclusion and Digital Financial Inclusion in India: A Comparative Study

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  • Srinivasu Bathula
  • Ankita Gupta

Abstract

The access to the financial services and digital financial services in India has not yet transformed into their frequent use. Therefore, the present paper provides a comparative analysis of the individual level determinants for few main indicators of the two main dimensions of financial inclusion and digital financial inclusion: access and use, based on binary probit regression analysis using World Bank’s 2017 Global Findex data. The paper concludes that education and workforce participation are positively associated with the access to financial services and digital financial services and also with the use of most of the financial services and digital financial services. Another interesting result is that being a woman and poor reduces the probability of using mobile banking but do not affect traditional banking.

Suggested Citation

  • Srinivasu Bathula & Ankita Gupta, 2021. "The determinants of Financial Inclusion and Digital Financial Inclusion in India: A Comparative Study," The Review of Finance and Banking, Academia de Studii Economice din Bucuresti, Romania / Facultatea de Finante, Asigurari, Banci si Burse de Valori / Catedra de Finante, vol. 13(2), pages 109-120, December.
    • Handle: RePEc:rfb:journl:v:13:y:2021:i:2:p:109-120
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    References listed on IDEAS

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    1. Fungáčová, Zuzana & Weill, Laurent, 2015. "Understanding financial inclusion in China," China Economic Review, Elsevier, vol. 34(C), pages 196-206.
    2. Ms. Ratna Sahay & Mr. Ulric Eriksson von Allmen & Ms. Amina Lahreche & Purva Khera & Ms. Sumiko Ogawa & Majid Bazarbash & Ms. Kimberly Beaton, 2020. "The Promise of Fintech: Financial Inclusion in the Post COVID-19 Era," IMF Departmental Papers / Policy Papers 2020/009, International Monetary Fund.
    3. Qian Wang & Jinbao Yang & Yung‐ho Chiu & Tai‐Yu Lin, 2020. "The impact of digital finance on financial efficiency," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(7), pages 1225-1236, October.
    4. Li, Jie & Wu, Yu & Xiao, Jing Jian, 2020. "The impact of digital finance on household consumption: Evidence from China," Economic Modelling, Elsevier, vol. 86(C), pages 317-326.
    5. Demirguc-Kunt,Asli & Klapper,Leora & Singer,Dorothe & Van Oudheusden,Peter, 2015. "The Global Findex Database 2014 : measuring financial inclusion around the world," Policy Research Working Paper Series 7255, The World Bank.
    6. Purva Khera & Miss Stephanie Y Ng & Ms. Sumiko Ogawa & Ms. Ratna Sahay, 2021. "Is Digital Financial Inclusion Unlocking Growth?," IMF Working Papers 2021/167, International Monetary Fund.
    7. repec:zbw:bofitp:2014_010 is not listed on IDEAS
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    1. Nokulunga, Mbona & Klara, Major, 2023. "Determinants of using formal vs informal financial sector in BRICS group," Finance Research Letters, Elsevier, vol. 55(PB).
    2. Zakaria Elouaourti & Aomar Ibourk, 2024. "Unveiling the drivers of Africa's digital financial inclusion journey," African Development Review, African Development Bank, vol. 36(1), pages 84-96, March.

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