By Dilip Modi – Founder & CEO, Spice Money
In the past decade, India has shown the world that financial inclusion is not a distant dream but an achievable reality. Nowhere is this more evident than in rural India, where the convergence of digital public infrastructure — Unified Payments Interface (UPI), Open Network for Digital Commerce (ONDC), the Account Aggregator (AA) framework, Common Service Centres (CSCs) and affordable broadband connectivity — is transforming the way people earn, spend and access opportunities. These are not mere platforms or policy initiatives. These are the backbone of an inclusive financial ecosystem that empowers millions in Bharat to participate in the economy on equal footing.
The UPI story is, perhaps, the most striking example of how technology can scale inclusively. What began as a payments innovation has become the world’s largest real-time payments system, processing over 19.47 billion transactions in a single month in July 2025. For rural India, UPI is more than just convenience. It is trust and accessibility. Shopkeepers, farmers and micro-entrepreneurs who once relied solely on cash now accept instant, reliable payments directly into their accounts. With Aadhaar-enabled Payment System (AePS), even those without smartphones can withdraw or deposit money securely using just their Aadhaar number and biometrics at local banking correspondents. Similarly, e-KYC has simplified account opening, making it possible for first-time users in villages to access formal banking within minutes. This shift is significant because digital transactions reduce leakage, help build transaction histories and open doors to formal credit, which has long been a lifeline missing for many small businesses.
If payments are the starting point, commerce is the next frontier. ONDC is reshaping the way rural sellers reach markets. Traditionally, farmers and small producers were constrained by geography. Their buyers were only as many as their local mandis or weekly haats could attract. Today, ONDC allows these producers to showcase their goods to a nationwide pool of customers. As of June 2025, 9,000 Farmer Producer Organisations (FPOs) have already been onboarded to ONDC, giving them visibility and bargaining power like never before. Even fair price shops, long considered the most traditional of distribution models, are experimenting with ONDC integration.
Importantly, ONDC is not only enabling large-scale participation but also nurturing grassroots innovation. Platforms such as eSamudaay are showing how small towns can build their own local digital marketplaces, powered by ONDC and India Stack. By offering entrepreneurs a ready-to-use digital storefront, integrated logistics, and secure payment options, eSamudaay helps shopkeepers, women-led enterprises and producer groups compete in the digital economy while staying rooted in their communities. This local-first model demonstrates that digital commerce is not about replacing traditional markets but expanding them, blending the best of local trust with the reach of national networks.
But commerce and payments alone are not enough. For proper inclusion, rural entrepreneurs and households need timely, affordable access to credit. This is where the Account Aggregator (AA) framework plays a pivotal role. By allowing individuals and small businesses to share their financial data securely and with consent, AAs bridge the trust gap between borrowers and lenders. In the financial year 2024–25 alone, the AA ecosystem facilitated loans worth ₹1.6 lakh crore across nearly 1.9 crore accounts. For rural borrowers, this means that a history of small digital payments or a savings account record can now translate into actual working capital. It transforms informal economic activity into a credible financial footprint.
When combined, these infrastructures — UPI for payments, ONDC for commerce, AAs for credit, CSCs for handholding support and broadband for connectivity form a powerful ecosystem. Together, these enable a farmer to sell beyond the village, receive instant payment and leverage that income proof for a micro-loan, all within a seamless digital journey. Adding to this, e-KYC ensures that identity verification is quick, low-cost and paperless, while AePS provides last-mile access to cash and banking services, ensuring inclusion even for those outside the smartphone ecosystem. This integration reduces dependence on middlemen, enhances transparency and fosters entrepreneurship. More importantly, it shifts rural households from being passive participants in the economy to being active drivers of growth.
Of course, progress does not mean perfection. There are challenges that must be addressed with urgency and sensitivity. Many rural merchants hesitate to fully embrace digital commerce due to uncertainties around Goods and Services Tax (GST) compliance. Digital literacy, though improving, still varies widely, particularly among older populations and women. Infrastructure costs such as last-mile broadband and device affordability remain burdensome for small operators. These are not reasons to slow down but opportunities to fine-tune policy. Simplifying tax processes for micro-enterprises, investing in vernacular digital literacy programmes, subsidising rural connectivity and embedding financial education into community touchpoints such as CSCs will be essential to ensure no one is left behind.
Digital public infrastructure is not just supporting Bharat’s financial inclusion journey. It is shaping its very foundation. By building on this momentum with thoughtful policies, collaborative innovation and community participation, we can ensure that every rural household has not just access to financial services but the confidence and capacity to use them.