Analysis of Adoption of Mobile Banking for Financial Inclusion in Rural India

The main vision of the Indian government for the past few decades is to achieve sustainable development and inclusive growth. Growth is inclusive only when formal financial services are accessible to the weaker sections and low income groups at an affordable cost. Increasing bank branches is not cost efficient and the only way forward is technology. Given the rising mobile phone usage in the country, mobile banking has a great potential for enabling financial services to the unbanked and under banked in rural areas. This paper conducts a systematic literature review on the evolution of mobile banking and its adoption across India. It aims to focus on understanding the reasons for failure of Indian governments initiatives to implement mobile banking, identifying the barriers for the adoption of mobile banking in rural areas and suggesting ways to increase the utilization of mobile banking for the interest of the financially underserved rural population. The main objective of this paper is to establish a working relationship between mobile banking and financial inclusion. The conclusions drawn from the literature state that mobile banking has a huge potential to change the way people in rural areas transact and save money. Therefore, there is a scope for future researchers to study and analyse various mobile banking models and their impact on rural India.