RBI Launches Initiative for Feature Phones to Boost Financial Inclusion in India, ET Government
MUMBAI: In a move aimed at accelerating 100% financial inclusion, the Reserve Bank of India (RBI) is engaging with banks and non-banking finance companies (NBFCs) to develop low-bandwidth mobile applications and customised financial products tailored for users in India’s remote and underserved regions.
According to official sources, the RBI is advocating for digital solutions that work seamlessly on feature phones, addressing the ongoing challenge of low connectivity and limited digital access in rural and semi-urban areas.
While most banking services today are optimized for smartphones, feature phone users remain underserved. The central bank wants financial institutions to bridge this digital gap by designing apps that are bandwidth-light yet secure, ensuring protection against cyber fraud.
The RBI has also directed banks to prioritize cybersecurity features while developing these products, given the rising risks associated with digital transactions.
This initiative aligns with the broader agenda laid out by RBI Governor Sanjay Malhotra, who has made inclusive banking a key priority of his tenure. The central bank’s Financial Inclusion Index (FI-Index), which tracks access, usage, and quality of financial services, rose to 64.2 in March 2024, up from 60.1 a year earlier. However, officials indicate the index will be revised in FY26 to better reflect new dimensions of inclusion.
To further inform its policies, the RBI has announced plans to conduct a nationwide survey on digital payment usage, aimed at understanding transaction behaviors and the challenges users face.
Separately, the RBI also intends to review existing regulations around internet and mobile banking for all banks, to ensure they remain relevant in the evolving financial landscape.
Earlier this month, RBI Deputy Governor M. Rajeshwar Rao emphasized the need for flexible financial products—such as variable savings options, seasonal loan repayment schedules, and user-centric design—to make services more accessible and meaningful for diverse population segments.
This renewed push by the RBI reflects a shift from simply expanding digital infrastructure to designing inclusive, adaptive, and secure solutions that can bring the last-mile population into the formal financial fold.
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