Digital Banking and Inclusion: Advancing Financial Access for Persons with Disabilities in India

The growth of digital banking and Unified Payments Interface (UPI) has reshaped India’s financial ecosystem. These tools have made transactions easier, faster, and more accessible for millions. Yet, for persons with disabilities, this digital shift brings both unprecedented opportunities and persistent challenges. Understanding the role of digital banking in fostering inclusion is essential to creating a financial system that serves every citizen, regardless of ability.

Why Inclusion in Financial Services Matters

Financial inclusion means more than having a bank account. It involves consistent access to services such as credit, insurance, digital payments, and savings tools. For persons with disabilities, financial inclusion supports not just economic independence, but also social integration and autonomy. Historically, people with disabilities in India faced numerous barriers, from being denied access to basic banking facilities to navigating physical and attitudinal obstacles within institutions. Until recently, it wasn’t uncommon for bank staff to hesitate in issuing chequebooks, ATM cards, or lockers to persons with disabilities.

The Reserve Bank of India (RBI) has made strides in removing these hurdles. Notably, its circulars, especially the one in 2017, have emphasized the need for non-discriminatory access to financial services. However, digital inclusion has been the real game-changer. With the rapid expansion of digital tools, persons with disabilities can now manage financial transactions independently, provided platforms and processes are made truly accessible.

Digital Banking and UPI: Transforming Access

Digital banking refers to a range of services offered via the internet, mobile apps, and other electronic platforms. These include mobile banking, net banking, UPI-based apps, and digital wallets. UPI, launched by the National Payments Corporation of India (NPCI) in 2016, allows seamless interbank transactions with just a mobile phone. Users can link multiple accounts to a single app and make payments instantly, without needing to visit a bank branch.

UPI’s impact is undeniable. Between 2018 and 2023, the number of participating banks rose from 91 to 314. Transaction volumes increased nearly 30-fold, and transaction values surged from ₹24,172 crores to ₹14.89 lakh crores. According to data from May 2023, UPI processed 9.41 billion transactions in a single month, reaching over 300 million users and 50 million businesses.

For persons with disabilities, especially those with mobility challenges, such advancements offer a path toward equal participation in the economy. But inclusion isn’t guaranteed just by availability, it must be built into the system’s design.

Inclusion-Centered Initiatives for Persons with Disabilities

Recognizing the need for inclusion, both government bodies and financial institutions have launched targeted efforts to address the barriers faced by persons with disabilities in accessing digital finance. Some notable initiatives include:

• Accessible Infrastructure: Many banks are upgrading their branches with ramps, tactile flooring, Braille signage, and talking ATMs. While urban areas have seen moderate success, rural penetration remains inconsistent.
• Customized Financial Products: A few banks have designed savings schemes, loans, and insurance policies tailored to persons with disabilities, often with lower interest rates or easier repayment terms.
• Digital Literacy Programs: Public and private institutions have begun conducting workshops and training sessions to improve digital skills among persons with disabilities. These programs are crucial in helping users gain confidence in navigating digital platforms.
• Staff Sensitization: Banks are increasingly investing in training staff to recognize and respectfully assist customers with diverse disabilities. This has improved service delivery and reduced unconscious bias in interactions.
• Employment and Representation: There’s a rising trend of persons with disabilities being hired by banks, not only as staff but in leadership positions. Their presence has helped institutions better understand user needs from a lived-experience perspective. Some banks are now involving their own employees with disabilities to evaluate digital accessibility features—an approach that is both effective and inclusive.

Persistent Barriers to Digital Inclusion

Despite the progress, several challenges hinder full digital inclusion for persons with disabilities:

• Digital Literacy Gaps: Many individuals still lack access to basic digital education or familiarity with apps, leaving them unable to fully utilize services.
• Accessibility Failures in Design: Apps may not work with screen readers or lack features like voice input or magnification. For people with visual or motor impairments, these design gaps effectively block access.
• Cybersecurity Concerns: Persons with disabilities may be more vulnerable to fraud due to limited exposure to safety protocols. Tailored education on secure digital practices remains limited.
• Infrastructure Limitations: Without access to reliable internet or assistive devices, digital financial services remain out of reach for many—particularly in rural or underserved areas.
• Lack of Disability-Disaggregated Data: Financial institutions and policymakers often lack data on how many persons with disabilities are using digital services. This data gap hinders targeted improvements and accountability.