Abstract

In this digital era, there is no sphere of life that does not use technology. In our daily schedule, it's clear that the day begins with a machine and ends with a machine. In such a phase, the financial sector, too, has shifted to digital platforms, which can help the masses save time by avoiding long queues at banks waiting for their turn to withdraw cash. Digital inclusion offers many benefits, making it the need of the hour for the financial sector to adopt it. Along with the pros, everything has some cons. Therefore, the financial industry was digitised, but numerous challenges arose. This study aims to understand the role of digital technology in the financial industry and the issues arising from the digitalisation of the Indian financial sector. This study will focus on the reasons behind these issues by reviewing secondary data from the literature, so the financial industry can take appropriate measures to resolve them. The digitisation of payment methods enables the development of new products and services in a more efficient market. Along with this, users want to make secure payments in a simple, almost imperceptible manner.

Keywords: Digitalisation; Financial Inclusion; Indian Financial Sector; Regulatory challenges