A study on Digital Public Infrastructure (DPI) in driving financial inclusion and fintech growth in India

Financial inclusion is a key enabler and ensures people are availing of financial services and are a part of the financial system. However, there has been a gap in demand for financial services and supply from institutions. With initiatives like Aadhaar, UPI, and Account Aggregators, Digital Public Infrastructure (DPI) has accelerated access to banking, payments, and credit. This study examines the critical role of DPI in driving financial inclusion and fintech growth in India while analyzing use cases of fintech leveraging DPI, its impact on financial penetration, and existing challenges. Though the internet, mobile banking and ATMs have evolved but now payment and lendingtech fintech firms are playing a significant role in financial inclusion. Findings indicate that while DPI has significantly improved financial inclusion, issues like data privacy, last-mile connectivity, and account dormancy persist. Robust policy measures and new innovative ways are recommended to enhance security such as DEPA act, literacy through financial literacy programs and innovation in digital finance through RBI regulatory sandbox.