A decade ago, a vegetable seller in a small Indian town lived in a fragile financial world. Cash was the only currency she trusted, her modest savings were tucked away at home, and the idea of insurance or a bank loan was beyond imagination. If she needed money, the local moneylender was her sole resort — unreliable, expensive, and often exploitative.
Today, her life looks entirely different. She accepts QR-code payments, maintains a Jan Dhan account to secure her earnings, pays a few rupees a month for life or accident insurance, and can even apply for collateral-free loans.This transformation began in 2014 with the launch of the Pradhan Mantri Jan Dhan Yojana (PMJDY). In less than ten years, more than 55 crore accounts were opened, drawing millions—especially women — into the formal banking system for the first time.
A simple bank account became more than a passbook. It was a gateway to government benefits, a recognised identity, and a step toward dignity and independence. The safety net expanded in 2015 with affordable insurance and pension schemes. The Pradhan Mantri Suraksha Bima Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana, and the Atal Pension Yojana gave daily wage workers, vendors, and artisans financial protection they had never imagined. Over 83 crore enrolments brought social security to the masses, ending its status as the privilege of a few.
For small entrepreneurs, the introduction of MUDRA loans was equally transformative. With access to collateral-free credit, shopkeepers, artisans, and micro-businesses could grow without being trapped by informal lenders. Unlike the shadowy world of handwritten IOUs, formal credit came with clear terms, receipts, and trust. If Jan Dhan was the foundation, the digital revolution gave inclusion its wings. The rise of UPI, supported by affordable mobile data, reshaped how Indians transacted.
By 2024, UPI processed over 12 billion monthly transactions. Suddenly, a farmer could sell produce at the mandi and be paid instantly, while a migrant worker could send money home in seconds. The spread of digital finance created a network effect — once some adopted it, others quickly followed, making money management more democratic than ever before. This leap was supported by grassroots infrastructure. More than 13.5 lakh Bank Mitras and Aadhaar-enabled service points took banking to villages where branches never existed. FinTech companies then layered on innovations — crop insurance linked to weather data, digital credit scores, and micro-investments — tailored to farmers, women entrepreneurs, and gig workers. Yet, challenges remain. Inclusion has not always meant empowerment.
Millions of Jan Dhan accounts remain inactive, and for many, digital finance is limited to sending or receiving money. Rising digital frauds and phishing scams have also dented trust, demanding stronger consumer protection and awareness. Equally urgent is financial literacy. Access without understanding remains shallow; people need guidance on safeguarding PINs, evaluating insurance, and avoiding predatory loans.The next phase of inclusion will be powered by technology — AI-driven credit design, blockchain for tamper-proof records, satellite-based crop insurance, and portable benefits for gig workers.
But as India advances, it must ensure no one is left behind — the elderly, the digitally excluded, or those still dependent on cash. India’s financial story is not only about big numbers but about individual empowerment: The woman in Bihar saving without fear, the gig worker in Bengaluru with health coverage, the shopkeeper who sees credit as a ladder, not a trap. The first chapter was about access. The next must be about empowerment — making finance not just inclusive but meaningful, resilient, and dignified.
The writer is a fintech expert and writes on political and economic development