Financial sector development (FSD) has been recognised as a supportive factor, acting as a shift variable in the growth function, besides the fundamental variables of capital stock and labour. Since the beginning of the new millennium, rapid strides in the spread of information and communication technology (ICT) have enabled the hitherto reluctant, urban-based banking institutions to reach the rural masses for mobilising savings. Digitisation through various innovations has made it possible that ‘brick and mortar less’ bank branches now increasingly provide financial services to rural India. This study examines the role of digitisation as a contingent factor in India’s FSD and growth nexus during the last 13 years (2003–2015). The findings of the empirical study through employment of ARDL methodology and application of bounds testing procedure by utilising 52 quarterly observations of the data series of relevant variables reveal that digitisation has indeed emerged a significant factor in the FSD and growth nexus, by playing a complementary role to FSD. There are two policy implications: (a) as ICT has emerged a major tool, it has to be supported at all levels, and (b) the financial inclusion process should be carried forward as it has all the potential to speed up economic growth and development. JEL: G21, O16, O33

中文翻译：

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数字化是印度金融业发展与增长的偶发因素：一项实证研究

除资本存量和劳动力的基本变量外，金融部门的发展（FSD）被认为是支持因素，在增长函数中作为转移变量。自新千年开始以来，信息和通信技术（ICT）的迅速发展使迄今不情愿的城市银行机构能够接触到农村群众，以动员储蓄。通过各种创新进行的数字化使得“少花钱，少买东西”的银行分支机构现在越来越有可能为印度农村地区提供金融服务。这项研究探讨了数字化在过去13年（2003-2015年）中在印度FSD和增长联系中作为或有因素的作用。通过使用ARDL方法和使用边界测试程序进行实证研究的结果，利用相关变量数据系列的52个季度观察，发现数字化确实通过发挥补充作用，已成为FSD和增长联系的重要因素。消防处。政策涉及两个方面：（a）由于ICT已成为一种主要工具，因此必须在所有级别上予以支持；（b）应继续推进金融普惠进程，因为它具有加速经济增长的所有潜力。发展。JEL：G21，O16，O33 （a）由于信息通信技术已经成为一种主要工具，因此必须在所有各级予以支持；并且（b）应继续推进金融普惠进程，因为它具有加速经济增长和发展的全部潜力。JEL：G21，O16，O33 （a）由于信息通信技术已经成为一种主要工具，因此必须在所有各级予以支持；并且（b）应继续推进金融普惠进程，因为它具有加速经济增长和发展的全部潜力。JEL：G21，O16，O33