Take stock of financial well-being

In this blog, the author has attempted to summarise the vast literature on the determinants of financial inclusion using a framework developed by Moscona et al (2026).

Almost 65% of India’s population lives in its rural areas.1 India’s financial sector has seen unprecedented expansion, driven by policy initiatives, digital infrastructure and regulatory reforms. Initiatives like Pradhan Mantri Jan-Dhan Yojana (PMJDY), Aadhaar-linked banking, Unified Payments Interface (UPI) and digital lending have significantly improved access to financial services, particularly for underserved segments.

This article explores the significance of financial inclusion in determining the financial well-being of Indian households. It discusses a measurement framework developed by Dvara Research and xKDR Forum, focusing on access to and usage of financial products, and financial well-being. Our results from collaborative research with financial service providers shed light on the framework's applicability and its relationship with improved financial outcomes.

There is consensus about the importance of financial inclusion. This has translated into efforts to increase the level of financial access from the financial sector firms as well as through policy initiatives. Among the financial sector initiatives, the most visible has been the growth of the FinTech platforms.

Despite significant policy support for financial inclusion, there is little evidence about what has been achieved by way of knowing which households and individuals are financially included, or what is the impact of such inclusion on these persons.

The Inclusive Finance India Report is a comprehensive and well-researched account on cumulative progress made in India toward reaching the ambitious goal of universal financial inclusion.