EVALUATING THE IMPACT OF DIGITAL PUBLIC INFRASTRUCTURE ON FINANCIAL INCLUSION WITH MEDIATING EFFECT OF DIGITAL LITERACY IN ASPIRATIONAL DISTRICTS OF UTTAR PRADESH

The study investigates the impact of Digital Public Infrastructure (DPI) on Financial Inclusion (FI), mediated by Digital Literacy (DL), in the aspirational districts of Balrampur and Shravasti, Uttar Pradesh. The study constructs indices for DPI, DL, and FI to capture their multidimensional characteristics and evaluates their interrelationships based on a sample of 300 respondents. The results indicate that DPI substantially improves financial inclusion, both directly and indirectly, by digital literacy, which serves as a partial mediator. However, gaps in digital literacy and socio-economic variables, including poverty and education, engender a digital divide, constraining fair access to financial services. Regression and mediation studies highlight the revolutionary potential of DPI, while stressing the need to improve digital skills to augment its influence. Policy considerations include digital literacy initiatives, addressing the digital gap via subsidies and localised strategies, and the incorporation of financial and digital literacy programs. The study underscores the need of overcoming structural obstacles to guarantee that DPI acts as a catalyst for equitable economic development in impoverished areas. Keywords: Financial Inclusion, Digital Public Infrastructure, Digital Literacy, Aspirational Districts.