IMPACT OF DIGITAL PAYMENT SYSTEMS ON FINANCIAL INCLUSION AND ECONOMIC BEHAVIOUR IN RURAL MARATHWADA

Abstract [English]

The rapid growth of digital payment infrastructure in India has changed the way people do business, especially in rural and semi-urban areas. The Federal Government of India, the Reserve Bank of India, along with the National Payments Corporation of India have all worked together to speed up the use of digital technology by creating platforms that work with each other, like the Unified Payments Interface along with Aadhaar-enabled payment services. This study examines the influence of digital payment systems on financial inclusion along with economic behavior in rural Marathwada, a historically drought-prone as well as economically vulnerable area of Maharashtra. The study employs a mixed-method empirical design that integrates merchant interviews, household surveys, as well as secondary district-level financial data to assess access, usage intensity, behavioral change, savings habits, and credit inclusion, along with microenterprise growth. The results show that account usage has increased significantly, transaction costs have gone down, welfare transfers are more transparent, and people are more likely to use formal financial services. Nonetheless, deficiencies in digital literacy, connectivity constraints, cybersecurity issues, and gender inequalities endure. The paper suggests a framework for a digital financial ecosystem that is specific to a region in order to promote inclusive growth