Financial inclusion as a pathway to sustainability goals for marginalized communities in India

India has made remarkable strides over the past two decades in expanding financial access through digital payment systems, mobile banking, and ambitious government programs. Yet this journey toward universal financial inclusion reveals a sobering paradox: as we bring more people into the formal financial system, reaching those still left behind becomes increasingly challenging. This struggle has profound implications for India’s commitment to the Sustainable Development Goals (SDGs), particularly in eliminating poverty (SDG 1), creating decent work opportunities (SDG 8), and reducing inequalities (SDG 10). This study examines the complex realities of financial inclusion in India, focusing specifically on the experiences of marginalized and indigenous communities who remain on the periphery of mainstream financial services. Drawing from existing research, government data, and real-world case studies, we explore how financial exclusion is associated with barriers to achieving SDG targets while identifying practical pathways toward more inclusive development. The research reveals persistent challenges including geographical remoteness, cultural barriers, and financial illiteracy that are associated with limited participation in formal financial systems. Through analysis of government initiatives like the Pradhan Mantri Jan Dhan Yojana and examination of grassroots organizations like the Centre for Tribal and Rural Development Trust, we identify both successes and limitations in current approaches. Our recommendations offer concrete guidance for policymakers, financial institutions, and community organizations, emphasizing locally-driven, participatory approaches that embody the SDG commitment to leaving no one behind. The study’s principal contribution is to set new primary evidence from a tribal-focused grassroots organisation alongside an established international community-owned bank model and, from this juxtaposition, to derive an integrated, locally grounded policy package. In doing so it addresses a gap in the Indian financial-inclusion literature, which has documented the access–usage divide extensively but has offered comparatively few community-anchored institutional remedies for Scheduled Tribe populations. Given its exploratory, descriptive design, the study reports associations rather than causal effects.