Demonetization, the Movement to an Electronic Payments System and the inch towards Full Financial Inclusion in the Indian Economy

Abstract

There is ever-growing evidence, and importance of Financial Inclusion in economic growth and development in emerging economies like India. However, there is little-to-no information about the role of institutions engaged in digitized payments in accelerating Financial Inclusion. This paper aims to study the effects of the recent Demonetization ordinance, and its impact on Financial Inclusion in 2016, as well as the impact on recent institutional policy announcements. Additionally, It aims to assess the potential benefits of a digitized payment ecosystem and its institutional framework, in response to orders made by the Government of India and The Reserve Bank of India in order to achieve full financial inclusion in the long-run