Sa-Dhan and HSBC Expand Digital Financial Literacy in 7 States

Mumbai (Maharashtra) [India], March 11: Sa-Dhan, an RBI-promoted Self-Regulating Organisation (SRO) of Microfinance and Impact Finance Institutions, revealed that its joint Digital Financial Inclusion Programme has widened the footprint of digital literacy across seven states in India, where it initially conducted the programme in mission mode. Sa-Dhan announced the outcomes of its programme in a Seminar on the subject “Transforming Lives through Digital Inclusion: Path Ahead”, organised at the Jio Convention Centre in Mumbai.

The HSBC-supported programme has impacted over 57,000 individuals directly and about 1,50,000 indirectly through various programme interventions, most of whom were women from low-income groups. Further, the programme has improved awareness of digital finance services, mobile banking, and UPI payments and reduced dependency on others for digital transactions, credit assessment, and fraud awareness.

Explaining the programme’s outcome, Mr Chandan Thakur, Deputy Director of Sa-Dhan, said, ‘In line with digital inclusion advancements, Sa-Dhan has partnered with Microfinance Institutions (MFIs) supported by HSBC to empower underprivileged communities with essential digital financial skills. Through our ‘Enabling Digital Solutions to Overcome Digital Inclusion Barriers’ programme, we have successfully trained individuals fostering sustainable digital adoption across various regions.”

Highlighting that the Microfinance sector has done significant strides towards fostering financial inclusion in underserved communities through digital inclusion, Mr Thakur added, “As technology has increasingly become a crucial tool in advancing financial inclusion and that the Digital Public Infrastructure has significantly reduced the cost of basic banking services ensuring a wider reach, India has made significant strides in financial inclusion, increasing account ownership from 53% in 2014 to 80% today. In this regard, it becomes imperative to empower underprivileged communities with essential digital financial skills.”

Sa-Dhan and HSBC conducted this programme in about 45 districts of these seven states, where about 96 percent of the beneficiaries were women. After assessing the existing financial and digital financial literacy, the programme undertook capacity-building exercises for lenders and the community by engaging them through training sessions. It provided hands-on experience with financial applications for practical learning and sustained the adoption of digital finance. Measuring the result, it assessed the behavioural changes and impact. The module covered financial literacy, use of UPI applications, ATM transactions, Digital Saathi, safety in digital transactions, digital platforms for businesses and fraud prevention.

The seminar’s Inaugural Session included thought leaders like Shri S.S. Radha Ramana, General Manager, SIDBI, Mr Abhay Parekh, Head AePs NFS & Market Initiatives, NPCI; and Mr Romit Sen, Senior Vice President, India HSBC who shared their perspectives on the critical role of digital access in fostering economic empowerment.  The discussions centred on overcoming barriers to digital inclusion and implementing scalable solutions for sustainable, inclusive growth. Industry pioneers Mr Sarat Das, Managing Director of Grameen Development; Mr Amitesh Kumar, President and COO of Midland Microfin and Mr Ujjwal Vaidya, Head of Products at Pahal Financial Services, shared their digital transformation experiences and impact on financial accessibility.

The panel discussion had sector experts who analysed various pathways to remove digital inclusion barriers and the current scenario of the Microfinance sector. Mr Sadaf Sayeed, Co-Chair Sa-Dhan and the CEO of Muthoot Microfin, predicted that the Microfinance sector will soon move to underwriting to avoid the risks. Other eminent speakers wereMr Anand Raman, Senior Financial Specialist, CGAP and Mr Yashwant Lodha, Co-founder of PayNear. MsHamsini Karthik, Banking Editor, Money Control, moderated the session.

According to Sa-Dhan, digital inclusion has enabled government initiatives such as PMJDY, Aadhaar, and UPI. As the numbers go, total UPI transactions have soared dramatically, with volumes rising from 375 crore in CY-2018 to 17,221 crores in CY-2024. The value of these transactions surged from ₹5.86 lakh crore to ₹246.83 lakh crore in the same period, underscoring the growing adoption of digital payment systems nationwide.

The seminar showcased the key learning of the initiative, deliberated the present scenario, and engaged in an interactive discussion to explore opportunities for collaboration in advancing financial literacy and inclusion, challenges, and the path ahead.

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