JJEM: Special Edition 1 (December 2023)
JJEM: Special Edition 1 (December 2023)
2023-12-08
Digital Banking and Rural Entrepreneurship: Issues and Concerns
Seema H. M. and Dr. Sarala K. S
The financial system of a country plays an important role in promoting economic growth not only by channelizing savings into investment but also by improving efficiency of resources. The banking system plays a major role in representing the financial system in India. India is one of the fastest digitally growing economy which has witnessed the wave of digitalisation through Digital India initiative by transforming industry and lives in multi-dimensional ways. Rural enterprises are considered as the back bone of large scale enterprises in India. Recently, due to Covid 19 pandemic digital banking is playing a vital role in making financial transactions of any enterprise and also in banking transactions of rural enterprises. Digital Banking has not only improving the speed of banking services but also increasing customer satisfaction through 24X7 customer services through various digital platforms saving time and cost of banks and customers as well as enabling customers to perform banking activities from the comfort of their homes. Even though rural entrepreneurs have many opportunities and benefits through digital banking they are facing several challenges in the adoption and managing their financial transactions and other related services through digital platforms. Hence, it is intended to examine the impact of digital banking on rural entrepreneurs and digital banking practices of the rural entrepreneurs in Sagara taluk of Shivamogga district, Karnataka state. The study is carried out with the sample size of 80 respondents using simple random sampling method using a well-structured questionnaire. The study results revealed that more number male rural entrepreneurs have undertaken micro business activities in the service sector and are mainly using mobile phones for digital banking transactions. It was observed that respondents preferred debit card and UPI payment applications as their digital banking methods and are facing the issues of digital illiteracy, low internet access, lack of awareness about digital payment modes and poor electricity. It is suggested to create awareness and motivate the rural entrepreneurs to go for digital banking technology and its proper implementation helps to overcome such challenges enhancing their contribution to the economy
Benefits, Challenges, Digital Banking, Payment Modes, Rural Entrepreneurship