Article Details
  • Published Online:
    May  2025
  • Product Name:
    The IUP Journal of Bank Management
  • Product Type:
    Article
  • Product Code:
    IJBM010525
  • DOI:
    10.71329/IUPJBM/2025.24.2.5-28
  • Author Name:
    A Charles and R Krishna Kumar
  • Availability:
    YES
  • Subject/Domain:
    Finance
  • Download Format:
    PDF
  • Pages:
    5-28
Volume 24,Issue 2, May 2025
Digital Finance Behavior of Rural Households in India: A Multifactor Analysis
Abstract

This study examines the personal, social, economic, cultural and technological factors that influence the digital finance behavior of rural households in Villupuram District, Tamil Nadu. Digital finance factors like literacy, infrastructure, adoption, and exclusion are considered for the purpose. Multistage stratified random sampling method is used for collecting data and structural equation model is used for analysis. The findings show that digital finance literacy and infrastructure play a significant role in defining rural households’ digital finance behavior. Further, it is found that increasing digital literacy and improving infrastructure could reduce digital exclusion.

Introduction

Rural India accounts for 46% of the nation’s gross domestic product (GDP). Since cash transactions are considered the safest, most rural residents trust them (Singh & Malik, 2019). In the modern era, the cashless system has become indispensable. The digital revolution is made possible by innovations such as mobile phones, Internet penetration, e-governance, etc. Digital finance services provide opportunities to deliver a variety of acceptable, appropriate, and trustworthy banking services and products for the underprivileged in emerging countries.