Hyderabad: India’s push for financial inclusion has emerged as a defining pillar of its economic and social transformation, said Nagaraju Maddirala, secretary, department of financial services, ministry of finance, on Saturday. Speaking at the 69th Foundation Day of the Administrative Staff College of India (ASCI) in Hyderabad, he said the expansion of formal financial services is reshaping the way people participate in the economy. “Financial inclusion is recognised globally as a key driver of growth, with 7 UN sustainable development goals identifying it as a critical enabler for improving the lives of poor and marginalised communities,” he noted.Maddirala underlined that India’s challenge is not merely economic but structural. “Given its size and diversity, inclusion cannot stop at opening bank accounts. It must ensure that households can save securely, borrow responsibly, absorb financial shocks, and invest in health, education, and livelihoods,” he said. Over the past decade, India rebuilt the foundations of financial access through digital public infrastructure, targeted welfare delivery, and microcredit ecosystems, he added.According to the Reserve Bank of India’s Financial Inclusion Index, India’s score rose to 67.0 in March 2025, an annual increase of 4.3% and a 24% jump since 2021. The Pradhan Mantri Jan Dhan Yojana remains a defining milestone, bringing 57 crore people into the formal financial system, with balances totalling Rs 2.75 lakh crore. Of these accounts, 68% are in rural and semi-urban areas, and 55% are held by women, an indicator, he said, of India’s widening coverage.The JAM trinity comprising Jan Dhan, Aadhaar, and Mobile, has strengthened welfare delivery, enabling Rs 3.68 lakh crore in direct benefit transfers this financial year and saving Rs 4.31 lakh crore by reducing leakages. Digital payments continue to surge, with India processing 2,057 crore real-time transactions worth Rs 26.32 lakh crore in Nov 2025, nearly half of all such payments globally.The next phase of inclusion, he said, must expand its focus to responsible credit, digital literacy, consumer protection, and stronger coordination across institutions. “Sustainable financial resilience will require more than access. It will require governance, awareness, and safeguards,” he said.Maddirala also outlined major digital reforms underway. In the coming months, the Life Insurance Corporation (LIC) is expected to make its entire customer journey, from buying a policy to receiving benefits, fully digital, with a nationwide rollout planned for Dec or Jan. LIC’s unit-II is undergoing a five-stage digital overhaul through a new Financial Budget Interface (FBI) platform, a system he described as offering a banking-like digital experience. Internal testing is complete, and a public launch is expected soon.To strengthen cybersecurity, he said the govt has created the Digital Public Infrastructure Trust (DPIT), a new body designed to identify and neutralise cyber threats before they occur. The govt is also pushing for greater transparency in pension-related data across public and private banks.
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