Fintech In Rural Non-Farm Sector In India

Abstract

In recent years, rural non-farm sectors have become abundantly important contributors to India's economic growth and diversification, particularly in areas that are traditionally dependent on agriculture. However, it is important to transform rural non-farm sectors of India to another level. Fintech or financial technology plays a transformative role in the sectors, such as streamlining operations, reducing costs, and enhancing customer experiences. With a significant portion of India's population residing in rural areas, fintech organizations are using technology to deliver essential financial services and products to traditionally underserved communities. As the digital revolution continues to impact India's economy, fintech has emerged as a powerful force capable of bridging financial inclusion gaps and promoting economic development. However, the adoption of fintech solutions in India's rural non-farm sectors has been relatively slow. So, this review examines the role of fintech in these sectors, evaluates the current fintech solutions available in rural non-farm areas, identifies the main barriers to adoption, and explores how fintech can enhance financial inclusion in these sectors. Additionally, it assesses the impact of government policies on the integration of fintech within rural non-farm sectors. Moreover, challenges and future opportunities for fintech in these areas are also discussed.