A STUDY ON CHALLENGES IN MOBILE BANKING USAGE IN RURAL AREA

Abstract

The increasing penetration of smartphones and digital technologies has made 
mobile banking a vital tool for promoting financial inclusion in India. Mobile banking 
provides customers with convenient access to a wide range of banking services such as 
fund transfers, bill payments, and account management without the need to visit physical 
branches. Despite these advantages, its adoption in rural areas has been relatively slow 
due to a variety of challenges. This study aims to examine the barriers faced by rural 
populations in utilizing mobile banking services, with specific focus on issues such as 
poor internet connectivity, lack of digital literacy, limited availability of smartphones, 
fear of fraud, language constraints, and trust deficits in technology- based banking. The 
research is based on primary data collected from rural respondents along with secondary 
data from published sources to analyze the extent of usage and the problems encountered.