From Access to Active Use in Digital Financial Inclusion in India

Abstract

Digital public infrastructure has transformed the meaning of financial inclusion from mere access to formal accounts into the ability to participate actively, safely, and autonomously in digital economic life. This article examines India as a critical case for understanding this transition. Using secondary data from the World Bank Global Findex Database 2025, National Payments Corporation of India statistics, official Government of India digital payment records, and international policy literature, the study analyses how account ownership, mobile connectivity, interoperable payments, and public digital platforms interact to produce new forms of financial capability. The article argues that India’s digital financial inclusion model has moved decisively beyond the first-generation access agenda, but the conversion of access into meaningful financial agency remains uneven. The evidence indicates rapid expansion of account ownership and exceptionally high digital payment intensity, particularly through Unified Payments Interface. However, persistent concerns remain around inactive accounts, gendered digital use, digital safety, consumer grievance redressal, and the limited translation of payment use into formal savings, responsible credit, insurance, and long-term financial resilience. The article contributes a capability-conversion framework for analysing digital financial inclusion and argues that future policy must shift from infrastructure expansion to inclusive, secure, and welfare-enhancing use.