Covid-19: Why India needs better financial inclusion

The year 2020 has been teething troubles for every individual across the world. In our country, low-income and underserved people struggle to cope with the catastrophic collapse of the Covid-19. The challenge of creating a financially inclusive system has never been more challenging or more significant.

Financial inclusion has concerned both the government and economic development leaders. Although several policies and legislation have been implemented, they have only served to inspire historically under-banked communities to seek formal financial institutions. In India, digitisation has taken a U-turn by being more inclusive to individuals. The Centre has proactively attempted to integrate the population into the broader financial system. A majority of the population has access to open a bank account, and a portion of them even know how to conduct cashless transactions using UPI. This is a positive trend in recent years, resulting in increased confidence in digital platforms.