Fintech Enabled Financial Inclusion: Evidence From India’s Digital Payment Revolution

Abstract

Fintech growth changed India's banking and payment ecosystem. The Unified Payments Interface (UPI) and government led financial inclusion initiatives like the Pradhan Mantri Jan Dhan Yojana (PMJDY) have significantly contributed to this change. This study examines the statistical relationship between fintech driven digital payment adoption and financial inclusion in India from 2014 to 2025. The study is based on secondary data obtained from the National Payments Corporation of India (NPCI) and the PMJDY portal. For analysis, it employs trend analysis, descriptive statistics and correlation analysis to evaluate patterns of digital transaction growth and account ownership. Data from the National Payments Corporation of India and the PMJDY portal show clear trends. UPI transactions grew exponentially since 2018. UPI transaction values correlate strongly with PMJDY account growth. Access to formal banking increases digital payment usage. Rural areas hold the majority of new PMJDY accounts. Rural account penetration succeeded in reaching underserved populations. Digital payments and policy led inclusion support each other. India continues its transition toward a digital financial system. The results provide insights for policymakers and financial firms. They must design strategies that integrate account penetration with digital usage. This approach ensures inclusive and sustainable financial development.