Issues and Challenges in Using Mobile Phones As a Tool for Financial Inclusion in India: An Overview

Abstract

this paper attempts to explore the dimensions of using mobile phones as a means of financial inclusion in India and identify the areas that call for further investigation and policy implementation. With increasing affordability of the mobile handsets and better tariffs, the digital divide has been blurred, created initially by computers and the internet. Out of the total mobile subscription base in India, nearly forty percent belongs to rural areas. This urges us to have a look at m-banking as a tool for India's much talked goal of financial inclusion. The paper employs a case-based approach to explore the use of mobile phones for financial inclusion through benchmarking global practices in this area. The results are expected to provide comprehensive understanding of the scope as well as the roadblocks in implementing a mobile based financial inclusion framework in India and is expected to have policy implications in this direction.