2025, Vol. 6, Special Issue 3

A large portion of the rural population still lacks access to basic financial services, which limits their ability to build resilience and improve their livelihoods. Around 70% of the world’s poor live in rural areas, making financial inclusion a critical tool for reducing poverty and promoting development. It should be viewed not just as a policy goal, but as a means to bring about real, positive changes in people’s lives. Financial strategies can help rural side areas in several ways—by helping farmers treat agriculture as a business, encouraging small non-farm enterprises, providing support to rural workers, and easing the transition for those who migrate to cities for work. In most cases, rural families use a combination of these approaches to make a living. Therefore, it's essential to offer a variety of financial services tailored to support their different needs and transitions between income sources. In India, financial inclusion initiatives are being closely aligned with the United Nations’ Sustainable Development Goals (SDGs), especially with a focus on farming communities and economically vulnerable households. This study explores how such initiatives have impacted the lives of marginalized groups and how effectively they support India’s efforts to meet the SDGs. Some of the important steps implemented by the Indian government in this regard is the JAM Trinity—short for Jan Dhan, Aadhaar, and Mobile. This initiative links bank accounts with Aadhaar identification and mobile numbers, helping to prevent leakages in subsidy delivery and making government benefits more accessible and efficient.

In summary, financial inclusion means ensuring that everyone should be above the income line and has access to and can effectively use formal financial systems like savings accounts, credit, insurance, and digital payment platforms. Studies have shown that better financial access helps lift people out of poverty and reduces inequality. On the other hand, financial exclusion—being cut off from these services—can trap people in cycles of poverty and economic instability. As a result, financial inclusion has become a central part of development strategies in recent years, especially in efforts to build inclusive and sustainable growth.