Adoption of Digital Banking Technologies in Rural Areas: Challenges and Solutions
Keywords:
Digitalization, Banking Sector, Rural Area, India, Issues.
Abstract
"Digitalization" is a concept that dominates the modern environment in which we live.
With the goal of transforming India into a knowledge economy and society enabled by technology, the Indian government has unveiled the Digital India Programme. Digitalization is the process of using digital technology to enhance current procedures or implement new ways of running a business, which enhances customer satisfaction and increases the firm's currency exchange rates. The paper aims to assess the significance of digital literacy in the current banking environment and to explain the potential and difficulties that have recently emerged in the rural banking industry, with a focus on digitalization. Banks are essential to the banking system in India. They are responsible for overseeing public finances and making investments to support trade and economic growth. The banking sector makes up the majority of the financial sector in developing nations like India, while other financial sectors are still in their infancy. With effect from October 17, 2000, the Indian government passed the IT Act, 2000, giving electronic transactions and other forms of electronic business legal status.
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2. Agur, I., Peria, S. M., & Rochon, C. (2020). Digital financial services and the pandemic: Opportunities and risks for emerging and developing economies. International Monetary Fund Special Series on COVID-19, Transactions, 1, 2-1.
3. Azmi, S. N., Akhtar, S., & Nadeem, R. (2020). Impact of digitalisation on bank performance: A study of Indian Banks. TEST Engineering & Management, 83(23678), 23678-23691.
4. Cannon, Y. (2021). Closing the health justice gap: access to justice in furtherance of health equity. Colum. Hum. Rts. L. Rev., 53, 517.
5. Das, S. (2024). Financial Literacy and Education in Enhancing Financial Inclusion and Poverty Alleviation. In E-Financial Strategies for Advancing Sustainable Development: Fostering Financial Inclusion and Alleviating Poverty (pp. 127-144). Cham: Springer Nature Switzerland.
6. Dikshit, S., Singh, G., & Pandey, D. A. C. (2022, February). Digital Banking for Rural Transformation a Comparative Study of Andhra Pradesh and Uttar Pradesh. In Proceedings of the International Conference on Innovative Computing & Communication (ICICC).
7. Donovan, K. (2012). Mobile money for financial inclusion. Information and Communications for development, 61(1), 61-73.
8. George, A. S., George, A. H., Baskar, T., & Shahul, A. (2023). Screens steal time: How excessive screen use impacts the lives of young people. Partners Universal Innovative Research Publication, 1(2), 157-177.
9. Jameaba, M. S. (2020). Digitization revolution, FinTech disruption, and financial stability: Using the case of Indonesian banking ecosystem to highlight wide-ranging digitization opportunities and major challenges. FinTech Disruption, and Financial stability: Using the Case of Indonesian Banking Ecosystem to highlight wide-ranging digitization opportunities and major challenges (July 16 2, 2020).
10. Khatun, M. N., Sarker, M. N. I., & Mitra, S. (2024). Adoption of mobile banking to promote financial inclusion among rural farming community: Drivers and satisfaction level perspective. Journal of Agriculture and Food Research, 18, 101448.
11. Kumar, V. (2023). Digital Hotspots. In The Economic Value of Digital Disruption: A Holistic Assessment for CXOs (pp. 689-795). Singapore: Springer Nature Singapore.
12. Mondal, S. (2011). Analysis of Profitability and Operational Efficiency of Axis Bank Ltd. Available at SSRN 1968437.
13. Mookerjee, J., Bhuriya, M. K., &Josphin, R. (2025) Digital Banking and Financial Inclusion in Rural Economies.
14. Nimbrayan, P. K., Tanwar, N., & Tripathi, R. K. (2018). Pradhan mantrijandhan yojana (PMJDY): The biggest financial inclusion initiative in the world. Economic Affairs, 63(2), 583-590.
15. Oni, E. O., & Daniya, A. A. (2012). Development of small and medium scale enterprises: The role of government and other financial institutions. Arabian Journal of Business and Management Review (OMAN Chapter) Vol, 1(7).
16. Panda, B., & Joy, S. (2020). Dynamics of technological evolution in Indian banking. Prajnan, 48(4), 319-343.
17. Prasad, K. (2012). E-governance policy for modernizing government through digital democracy in India. Journal of Information Policy, 2, 183-203.
18. Salunkhe, S. C., & Shinde, G. A Study On Challenges Faced By Rural People Using Digital Financial Instruments In Thane District.
19. Sapovadia, V. (2018). Financial inclusion, digital currency, and mobile technology. In Handbook of Blockchain, Digital Finance, and Inclusion, Volume 2 (pp. 361-385). Academic Press.
20. Sharma, H. (2024). Digital Financial Services: Unveiling the Collective Potential in Rural Landscape of India (Doctoral dissertation, Auckland University of Technology).
21. Solanki, R. B., & Kumar, A. (2023). Technology Adoption in Banking Sector–Issues and Challenges. GLS KALP: Journal of Multidisciplinary Studies, 3(3), 12-20.
22. Solove, D. J. (2004). The digital person: Technology and privacy in the information age (Vol. 1). NyU Press.
23. Tamang, P. (2024). The impact of financial literacy workshops on customer understanding of banking products and services.
24. Tschang, F. T., & Almirall, E. (2021). Artificial intelligence as augmenting automation: Implications for employment. Academy of Management Perspectives, 35(4), 642-659.
25. Verma, N., & Kumaran, G. M. M. (2021). Digital transformation in government—A case study of India. In Citizen Empowerment through Digital Transformation in Government (pp. 1-22). Chapman and Hall/CRC.
Published
2024-08-13
How to Cite
Anjali Saroha, & Dr. Laxmi. (2024). Adoption of Digital Banking Technologies in Rural Areas: Challenges and Solutions. Revista Electronica De Veterinaria, 25(2), 1356 to 1360. https://doi.org/10.69980/redvet.v25i2.1809
Section
Articles
