Authors: Associate Professor Dr. B.G. Lakshmi, Associate Professor Dr. Jyothi B. Bhat, Assistant Professor Dr. Shobha B K, Assistant Professor Chaitrashree M R
Abstract: The paper explores the connection between usage of digital payments and their impact on financial inclusion results in rural India using a sequential exploratory mixed method approach. The study uses survey data collected from 1,689 respondents in Gujarat and Rajasthan and analysis of secondary data from governmental sources and empirical literature to explore socio-economic factors, obstacles, and outcomes of financial inclusion through UPI and other digital payment tools. It was discovered that age has a negative correlation with use of digital payments, while marital status, motivation, satisfaction, and perceived need were found to be significant predictors. The usage of UPI is the most widespread form of digital payments; however, cash plays an important role in rural transactions. Digital illiteracy, fraud problems, and infrastructural problems continue to be an issue. The paper highlights the necessity of implementing localized digital literacy programs, training programs for specific age groups, and improvement of digital infrastructure in rural areas.
