Toward Inclusive Finance: Mapping Digital Disparities Across India

We draw upon a recently released, large-scale dataset to conduct an empirical analysis of the determinants underlying regional disparities in digital payment technology adoption in India. Older individuals and women are less likely to adopt these technologies. Educational attainment plays a significant role. While caste and religion do not directly influence digital payment usage, their effects appear to be mediated through education and economic access. A counterintuitive finding is that economically advanced states such as Chandigarh, Delhi, Gujarat, and Karnataka have relatively low adoption of digital payment systems. Individuals prefer to conduct high-value transactions in cash to evade paying income tax.