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UPI Deepening & Financial Inclusion: Real Impact on Women and Rural Micro-Enterprises
Subject area: Management and Commerce · Area of research: Banking
DOI: 10.64388/IREV9I4-1711597-2037
Abstract
This paper examines how the rapid expansion of India?s Unified Payments Interface (UPI) has affected financial inclusion for women and rural micro-enterprises. Using official transaction statistics (NPCI) and institutional reports (RBI, NABARD, World Bank/Global Findex, Women?s World Banking) along with recent empirical studies, we analyze transaction patterns, measure associations between UPI activity and credit expansion, and explore gendered differences in digital financial behaviour. Key findings indicate UPI?s dramatic growth in transaction volumes and its correlation with expanded credit access among underserved borrowers. However, barriers remain: digital literacy, mobile internet access for women, and last-mile onboarding. Policy suggestions include gender-targeted digital literacy, merchant onboarding support for women micro-entrepreneurs, alternative data sharing standards for credit scoring, and targeted regulatory safeguards.
Keywords
UPI, Financial Inclusion, Women, Rural Micro-Enterprises, Digital Payments, Credit Access, India
References
[1] National Payments Corporation of India (NPCI). (2025). Unified Payments Interface (UPI) — product & ecosystem statistics (monthly). NPCI. Retrieved from NPCI product statistics pages.
[2] Central Advisory & Financial Research (CAFRAL). (2024). Open Banking and Digital Payments: Implications for Credit (policy note). CAFRAL.
[3] NABARD. (2023–24). NABARD Impact Report / The Microfinance Review (Jul–Dec 2024). NABARD publications.
[4] World Bank. (2025). Global Findex Database 2025 (data & report). World Bank.
[5] Women’s World Banking. (2024). Enabling Digital Payments for Women in India — Report. Women’s World Banking (India).
[6] Economic Times / summary of recent study. (2024/2025). UPI-enabled credit expansion among underserved borrowers: study summary. Economic Times.
[7] PwC India. (2024). The Indian Payments Handbook (2024–2029). PwC India.
[8] Haque, M.I. (2025). UPI and financial inclusion in rural India: A case study (ScienceDirect).
[9] Kim, K. et al. (2022). Assessing the role of mobile money in improving women's financial access (Journal article).
[10] Suri, T., & Jack, W. (2016). The long-run poverty and gender impacts of mobile money (M-Pesa). (Working paper).
How to cite this paper
@article{1711597,
author = {N. Nirmala Kumari},
title = {UPI Deepening & Financial Inclusion: Real Impact on Women and Rural Micro-Enterprises},
journal = {Iconic Research And Engineering Journals},
year = {2025},
volume = {9},
number = {4},
pages = {1800-1803},
issn = {2456-8880},
url = {https://www.irejournals.com/formatedpaper/1711597.pdf},
abstract = {This paper examines how the rapid expansion of India?s Unified Payments Interface (UPI) has affected financial inclusion for women and rural micro-enterprises. Using official transaction statistics (NPCI) and institutional reports (RBI, NABARD, World Bank/Global Findex, Women?s World Banking) along with recent empirical studies, we analyze transaction patterns, measure associations between UPI activity and credit expansion, and explore gendered differences in digital financial behaviour. Key findings indicate UPI?s dramatic growth in transaction volumes and its correlation with expanded credit access among underserved borrowers. However, barriers remain: digital literacy, mobile internet access for women, and last-mile onboarding. Policy suggestions include gender-targeted digital literacy, merchant onboarding support for women micro-entrepreneurs, alternative data sharing standards for credit scoring, and targeted regulatory safeguards. },
keywords = {UPI, Financial Inclusion, Women, Rural Micro-Enterprises, Digital Payments, Credit Access, India},
month = {October},
doi = {https://doi.org/10.64388/IREV9I4-1711597-2037}
}