Journal Press India^®

Author Details ( * ) denotes Corresponding author

The present study tries to know the awareness and usage of e-banking in rural Himachal Pradesh and discusses significant barriers and a scope for digital financial inclusion. This study has identified the differentiation between being comfortable and unfamiliar with e-banking platforms based on findings from organised questionnaires rounded out by 360 rural respondents. The study shows that adopting E-banking is highly influenced by digital literacy, education, and trust in online systems. It is also noted that digital gaps, security and privacy concerns, and poor internet access act as major deterrents. This study emphasises that policymakers, banking institutions, and technology providers must focus on interventional strategies. These challenges require multi-stakeholder efforts to be overcome: governments, financial institutions, and technology providers must bridge the gap regarding digital literacy, put up adequate infrastructure, and develop user-friendly systems.

Keywords

E-Banking; Digital Banking; Rural Areas; Himachal Pradesh; Mobile Banking; Digital Literacy

1. Asrani, C. (2020). Bridging the digital divide in India : Barriers to adoption and usage. In Indian Council for Research on International Economic Relations.
2. Chauhan, V., Choudhary, V., & Mathur, S. (2016). Demographic influences on technology adoption behavior: A study of e-banking services in India. Prabandhan: Indian Journal of Management, 9(5), 45–59. https://doi.org/10.17010/PIJOM/2016/V9I5/92571
3. Creswell, J. W., & Creswell, J. D. (2018). Research design qualitative, quantitative, and mixed methods approaches. Sage, Los Angeles. - References - Scientific Research Publishing (5th ed.). SAGE PublicationsSage, CA: Los Angeles. Retrieved from https://www.scirp.org/ reference/referencespapers?referenceid=2895169
4. Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly: Management Information Systems, 13(3), 319–339. https://doi.org/10.2307/249008
5. Etikan, I., & Bala, K. (2017). Sampling and sampling methods. Biometrics & Biostatistics International Journal, 5(6). https://doi.org/10.15406/BBIJ.2017.05.00149
6. Friedline, T., Naraharisetti, S., & Weaver, A. (2020). Digital redlining: Poor rural communities’ access to fintech and implications for financial inclusion. Journal of Poverty, 24(5–6), 517–541. https://doi.org/10.1080/10875549.2019.1695162
7. Groves, R., Fowler, F. J., Couper, M. P., Lepkowski, J., & Singer, E. (2009). Survey Methodology (2nd ed.). Wiley. Retrieved from https://www.researchgate.net/publication/ 264951116_Survey_Methodology
8. Halunga, A. G., Orme, C. D., & Yamagata, T. (2017). A heteroskedasticity robust Breusch–Pagan test for Contemporaneous correlation in dynamic panel data models. Journal of Econometrics, 198(2), 209–230. https://doi.org/10.1016/J.JECONOM.2016.12.005
9. Jain, S., & Sahu, J. P. (2024). Banking the unbanked: exploring the impact of internet penetration on accessibility to banking services in developed and developing economies. Digital Policy, Regulation and Governance. https://doi.org/10.1108/DPRG-02-2024-0021/FULL/XML
10. Kaur, S. J., Ali, L., Hassan, M. K., & Al-Emran, M. (2021). Adoption of digital banking channels in an emerging economy: exploring the role of in-branch efforts. Journal of Financial Services Marketing, 26(2), 107–121. https://doi.org/10.1057/S41264-020-00082-W/TABLES/3
11. Kesharwani, A., & Bisht, S. S. (2012). The impact of trust and perceived risk on internet banking adoption in India: An extension of technology acceptance model. International Journal of Bank Marketing, 30(4), 303–322. https://doi.org/10.1108/026523212112 36923/FULL/XML
12. Kesharwani, A., & Tripathy, T. (2012). Dimensionality of perceived risk and its impact on internet banking adoption: An empirical investigation. Services Marketing Quarterly, 33(2), 177–193. https://doi.org/10.1080/15332969.2012.662461
13. Kumar, A., Dhingra, S., Batra, V., & Purohit, H. (2020). A framework of mobile banking adoption in India. Journal of Open Innovation: Technology, Market, and Complexity, 6(2), 40. https://doi.org/10.3390/JOITMC6020040
14. Kumar, V. (2024). Unveiling the transformative impact of the Covid-19 pandemic on online shopping behaviour: Insights from Indian consumers. PRAGATI: Journal of Indian Economy, 11(2), 88–106. https://doi.org/10.17492/JPI.PRAGATI.V11I2.1122406
15. Kumar Vaid, Y., Singh, V., & Sethi, M. (2020). Determinants of successful financial inclusion in low-income rural population. The Indian Economic Journal, 68(1), 82–100. https://doi.org/10.1177/0019466220962057
16. Mathur, S. (2015). E-banking in India with special focus on rural banking. National Law University, Jodhpur. Retrieved from https://www.academia.edu/11744015/E_Banking_ In_India_With_Special_Focus_On_Rural_Banking
17. Ministry of Finance, G. of I. (2022). Economic Survey. Retrieved May 26, 2024, from Department of Economic Affairs website: https://www.indiabudget.gov.in/economicsurvey/
18. Mishra, D., Kandpal, V., Agarwal, N., & Srivastava, B. (2024). Financial inclusion and its ripple effects on socio-economic development: A comprehensive review. Journal of Risk and Financial Management, 17(3), 105. https://doi.org/10.3390/ JRFM17030105
19. Navdeep. (2019). Consumer awareness and adoption of mobile banking services in rural India. ECONSPEAK: A Journal of Advances in Management IT & Social Sciences, 9(5), 227–242. Retrieved from https://skirec.org/consumer-awareness-and-adoption-of-mobile-bankin g-services-in-rural-india/
20. P. R., P., & Shashidhar, R. (2024). Adoption of digital banking among rural customers: An empirical analysis. GBS Impact: Journal of Multi Disciplinary Research, 9(2), 233–241. https://doi.org/10.58419/GBS.V9I2.922316
21. Pallant, J. (2020). SPSS Survival Manual : A step by step guide to data analysis using IBM SPSS (7th ed.). United Kingdom: Routledge. https://doi.org/10.4324/9781003117452
22. Podsakoff, P. M., MacKenzie, S. B., Lee, J. Y., & Podsakoff, N. P. (2003). Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology, 88(5), 879–903. https://doi.org/10.1037/0021-9010.88.5.879
23. Reserve Bank of India. (2024). Reserve Bank of India - Annual Report. Retrieved from https://www.rbi.org.in/Scripts/AnnualReportPublications.aspx?Id=1150
24. Rodríguez-Espíndola, O., Chowdhury, S., Dey, P. K., Albores, P., & Emrouznejad, A. (2022). Analysis of the adoption of emergent technologies for risk management in the era of digital manufacturing. Technological Forecasting and Social Change, 178, 121562. https://doi.org/ 10.1016/J.TECHFORE.2022.121562
25. Rogers, E. M. (2003). Diffusion of innovations. In The Free Press (3rd ed.). New York City, United States: The Free Press, A Division of Macmillan Publishing Co., Inc. https://doi.org/10.4324/9781315263434-16
26. Singh, D. S., Agarwal, M. M., Singh, D. S., & Agarwal, M. M. (2020). Progress of digital banking in rural India. PRASTUTI: Journal of Management & Research, 9(1), 31–36. https://doi.org/10.51976/GLA.PRASTUTI.V9I1.912004
27. Singh, N., Zhou, Y., Williams, K., Kendall, J., & Kaushik, P. D. (2013). Bridging the digital divide in rural India. Review of Market Integration, 5(1), 1–42. https://doi.org/10.1177/ 0974929213496499
28. Tay, L. Y., Tai, H. T., & Tan, G. S. (2022). Digital financial inclusion: A gateway to sustainable development. Heliyon, 8(6), e09766. https://doi.org/10.1016/J.HELIYON.2 022.E09766
29. Vatnani, R., & Verma, S. (2014). Comprehensive framework for internet banking adoption: An empirical analysis in the Indian context. International Journal of Business Information Systems, 15(3), 307–324. https://doi.org/10.1504/IJBIS.2014.059753
30. Wang, C., Ahmad, S. F., Bani Ahmad Ayassrah, A. Y. A., Awwad, E. M., Irshad, M., Ali, Y. A., … Han, H. (2023). An empirical evaluation of technology acceptance model for Artificial Intelligence in E-commerce. Heliyon, 9(8), e18349. https://doi.org/10.1016/J.HELI YON.20 23.E18349
31. Weck, M., & Afanassieva, M. (2023). Toward the adoption of digital assistive technology: Factors affecting older people’s initial trust formation. Telecommunications Policy, 47(2), 102483. https://doi.org/10.1016/J.TELPOL.2022.102483
32. World Bank. (2014). Digital Financial Inclusion. Washington, D.C., U.S. Retrieved from https://www.worldbank.org/en/topic/financialinclusion/publication/digital-financial-inclusion
33. Yadav, P. (2015). Progress and management of electronic banking services in Himachal Pradesh (Himachal Pradesh University, Summer Hill, Shimla). Himachal Pradesh University, Summer Hill, Shimla. Retrieved from https://www.researchgate.net/publication/  320163795_progress_and_management_of_electronic_banking_services_in_himachal_pradesh
34. Yousafzai, S. Y., Foxall, G. R., & Pallister, J. G. (2010). Explaining internet banking behavior: Theory of reasoned action, theory of planned behavior, or technology acceptance model? Journal of Applied Social Psychology, 40(5), 1172–1202. https://doi.org/10.1111/J.1 559-1816.2010.00615.X