DIGITAL BANKING IN RURAL INDIA: ASSESSING USAGE AND IDENTIFYING ADOPTION BARRIERS

Abstract

The study "Digital Banking in Rural India: Assessing Usage and Identifying Adoption Barriers" explores the extent of digital banking usage and the key factors hindering its adoption among rural customers in Krishna district, Andhra Pradesh. Adopting a quantitative and descriptive research design, the study collected primary data from 120 rural bank customers using a structured questionnaire. The analysis reveals that while rural customers actively use digital banking services for basic functions such as mobile recharges and bill payments, the overall adoption remains limited due to infrastructural, operational, and trust related challenges. Key deterrents include poor internet connectivity, fear of financial risk, lack of digital confidence, and discomfort with digital interfaces. Moreover, the findings indicate that mere awareness of digital banking is insufficient to drive usage without hands-on support and digital literacy efforts. The study emphasizes the need for inclusive digital education, reliable infrastructure, and simplified user experiences to encourage sustained adoption of digital financial services in rural areas. These insights offer valuable implications for banks, policymakers, and fintech providers working to bridge the rural digital divide and promote financial inclusion.