credit gap to expanding financial reach: Weighing the potential of digital banks in India

Notwithstanding the rapid strides India has taken to further its financial-inclusion agenda, a substantial fraction of MSMEs remains outside the ambit of formal finance. A full-stack digital bank license can address the financial-deepening challenges Indian policymakers face today.
India’s fintech sector mopped up USD2.7 billion in investments in 2020. It followed that up with USD2 billion findings in the first half of 2021. The policy and technology catalysts that enabled this in-bound investment activity are now up and running. The Pradhan Mantri Jan-Dhan Yojana (PMJDY) has seen 420 million new bank accounts.