Financial Inclusion and Digital Banking in India: An Empirical Evaluation of the State Bank of India

Financial inclusion and digital banking are central pillars of India’s inclusive growth strategy. As the largest public sector bank, the State Bank of India (SBI) has emerged as a key driver of this transformation by leveraging its extensive branch network and rapidly scaling digital platforms such as YONO and UPI integration. This study evaluates SBI’s role in advancing financial inclusion using the Access–Usage–Quality (AUQ) framework, drawing on secondary data from the Reserve Bank of India (RBI), Department of Financial Services (DFS), National Payments Corporation of India (NPCI), and official SBI reports covering the period 2015–2025. The findings indicate that SBI has contributed significantly to account penetration under PMJDY, facilitated massive growth in UPI transactions, and fostered adoption of mobile banking services, especially in rural areas. At the same time, challenges such as dormant accounts, limited digital literacy, and cybersecurity risks persist. Policy recommendations emphasize the need for vernacular digital interfaces, targeted literacy campaigns, assisted digital banking services, and enhanced fraud detection mechanisms. The study underscores the critical role of SBI in balancing technological advancement with inclusive outreach, highlighting policy implications for sustaining financial inclusion in India’s evolving digital economy.