Digital finance, a booster for Indian economy during Covid-19

Abstract

An efficient financial system is a prerequisite for a country’s economic growth and development. Financial capability is a key factor to stabilizing and functioning the financial markets. It acts as a building block for the mobilization of saving and allocating them to the productive resources. The government of India along Reserve Bank of India (RBI) have taken a number of policy initiatives to include the large unbanked masses into the financial mainstreams. Recent development in communication and technology  can be used  in  a  very  efficient  manner  for  bringing the financially  excluded  people  under  the ambit  of  digital   financial  inclusion in a  cost  effective  manner. The purpose of this paper is to examine the role of digital finance in bringing about financial inclusion among  people  and how it  became  economic booster for  the  nation  and  citizen  in the  times  of  COVID-19. The study collects various reports published by RBI and other financial and nonfinancial institutions as relevant inputs. This research uses thematic analysis with a qualitative approach. This paper finds that Digital financial services have a great capacity to support financial inclusion for inclusive economic development. Especially  in the  times  of  COVID19, digital financial services  was great  help for  mankind to its  survival. COVID 19  was  the  situation when there  was  complete  lockdown all over  the  nation .lockdown was  necessary  to save  life of people  and  digital  finance  acted as  a  booster  for  any  of  the  economies  around the world.