[13] DIGITAL BANKING AND FINANCIAL INCLUSION IN RURAL KARNATAKA: A PATHWAY TOWARD SUSTAINABLE ECONOMIC EMPOWERMENT

How to Cite the Article: Srinivas K.R (2026). Digital Banking and Financial Inclusion in Rural Karnataka: A Pathway toward Sustainable Economic Empowerment. International Journal of Multidisciplinary Research & Review, 5(s2). 110-129.

Abstract

This study explores the impact of digital banking on financial inclusion and economic empowerment in rural regions of Karnataka. With the rapid expansion of digital financial infrastructure across the state, rural populations are increasingly exposed to platforms such as AEPS, UPI, and mobile banking applications. The study employed a mixed-method approach, surveying 180 respondents from selected rural districts in Karnataka to assess digital banking usage patterns, perceived benefits, and barriers to adoption. Results indicate that digital banking significantly reduces time and travel costs, improves savings behavior, and facilitates access to government schemes through Direct Benefit Transfers. However, challenges such as language limitations, digital illiteracy, and dependence on tech-savvy intermediaries continue to hinder full participation. Chi-square analysis confirmed a statistically significant relationship between digital banking usage and indicators of financial empowerment. The findings underscore the importance of localized digital literacy programs, simplified multilingual interfaces, and targeted outreach efforts to ensure that digital banking is an inclusive and sustainable pathway to economic development in rural Karnataka.