Bridging the Digital Gap: India's Push for Rural Financial Inclusion

At the Global Fintech Fest 2025 in Mumbai, Secretary M Nagaraju highlighted challenges in extending financial inclusion to rural India. While UPI growth is notable, internet access and offline transactions remain hurdles. Innovations in fintech are key. There are no plans for imposing MDR charges, and GST benefits are passed on by insurers.

At the Global Fintech Fest 2025 in Mumbai, M Nagaraju, Secretary of the Ministry of Finance, discussed the ongoing challenges in enhancing financial inclusion in India, particularly in rural and tribal communities. Despite the substantial growth of digital payment platforms like UPI, gaps in rural connectivity and financial access persist.

Nagaraju emphasized the need to integrate offline transactions to cater to areas with limited internet access. He commended fintech companies for innovating solutions to bridge the digital divide, suggesting that a more inclusive financial system could boost digital payment integration nationwide.

Addressing queries on Merchant Discount Rate (MDR) charges, Nagaraju confirmed no government proposal exists to impose such charges. Additionally, he mentioned that all insurance companies have successfully passed the 18% GST benefit to policyholders while adjusting their business strategies for Input Tax Credit impacts.

(With inputs from agencies.)