Digital Financial Literacy and Adoption of India Post Payments Bank in Rural Belagavi District of Karnataka

Digital finance is now become as a driver of inclusive growth in India, yet rural people continue to face barriers that restrict the full use of available services. The India Post Payments Bank (IPPB), launched in 2018, seeks to overcome these barriers by leveraging the vast postal network (around 1.55 lakh post offices) to deliver digital and doorstep banking. While this infrastructure expands access, the ability of rural households to effectively adopt such services depends largely on their digital financial literacy. This study examines the relationship between digital financial literacy and adoption of IPPB services in rural Belagavi district, Karnataka. A survey of 200 respondents was conducted, and a Digital Financial Literacy Index (DFLI) was constructed to measure awareness, knowledge, and usage of digital tools. Statistical analysis revealed a strong positive association between digital literacy and IPPB adoption. Education, smartphone ownership, and age emerged as significant predictors of adoption, while gender and limited awareness of advanced services created gaps. Although most respondents used IPPB for deposits, linking to their existing Post Office Savings Bank Account and government benefit transfers, uptake of mobile banking and UPI-based services remained modest. The findings highlight that strengthening digital financial literacy is essential to deepen IPPB’s impact in rural areas. Tailored awareness campaigns and targeted training through postal staff could further bridge the rural digital divide.