A Study on the Challenges and Threats faced by Below Poverty Line Groups in Digital Financial Inclusion in Madhya Pradesh

Abstract

Digital financial inclusion is increasingly being recognized as a cornerstone of equitable economic growth and poverty alleviation in India. The rapid spread of digital technologies and government-backed financial inclusion initiatives have created unprecedented opportunities for marginalized populations, including those living below the poverty line (BPL). Yet, despite these advances, the path to true digital financial inclusion in states such as Madhya Pradesh remains beset by formidable challenges and threats. This research paper provides a comprehensive analysis of the barriers faced by BPL groups in Madhya Pradesh, drawing on academic literature, policy reports, and empirical studies. Key issues examined include infrastructural deficits, low digital literacy, socio-cultural exclusion, affordability, cybersecurity vulnerabilities, and systemic policy gaps. The paper also explores the role of gender, caste, and rurality in shaping access to digital financial services and provides detailed policy recommendations for making digital financial inclusion more inclusive and effective for the most vulnerable.