Digital revolution in the Indian banking sector and its impact on rural area

The Indian economy is predominantly rural with over two-thirds of its population and workforce residing in rural areas. Rural India contributes a substantial part of the total net value added in many sectors, with an overall 46% contribution to our national income. With a population of 833 million people (which incidentally is larger than rural China) residing in 640,867 villages, it is projected that, by 2050, more than half of India's population will still be rural, despite rising urbanisation. Thus, the growth and development of the rural economy is imperative for inclusive development and overall growth of the country. Keeping in mind the evolving needs of rural citizens, the service portfolio available at these centers has gradually expanded beyond government services to banking, financial services, mobile top-ups, electricity payments, railway bookings, e-learning and e-commerce. Financial inclusion is an important priority of the government. Only 38% of the 117,200 branches of scheduled commercial banks are working in rural areas, and a meager 40% of the households have bank accounts. Thus, India is home to 19% of the world's unbanked population.