RBI Champions Financial Inclusion with Low-Bandwidth Apps for Feature Phones
June 13, 2025 — In a decisive push toward its mission of 100% financial inclusion, the Reserve Bank of India (RBI) has called on banks and financial institutions to develop low-bandwidth digital apps and products specifically designed for feature phones. The move is aimed at unlocking access to financial services in India’s most remote and underserved regions, where smartphone penetration and internet connectivity remain challenges.
As part of this digital transformation drive, the RBI has also emphasized the integration of robust cybersecurity features to prevent online fraud and ensure safe banking experiences for all users.
Bridging the Digital Divide
While retail banking is largely available via smartphone apps, the RBI has noted a significant service gap for users of basic mobile phones. The central bank is now urging the industry to reimagine mobile banking for low-bandwidth environments, ensuring even users in low-connectivity zones can benefit from digital banking.
“Design digital products that cater to the real India,” is the message from RBI to banks, encouraging user-centric innovation for feature phone users. This includes adaptable apps and products with simpler interfaces, low data needs, and offline capabilities.
Financial Inclusion on the Rise
Under the leadership of RBI Governor Sanjay Malhotra, the country’s Financial Inclusion Index (FI-Index) has already shown improvement—from 60.1 in March 2023 to 64.2 in March 2024, reflecting growing accessibility and usage of financial services. The RBI has set its sights on an even more robust score for FY26.
Surveying the Road Ahead
To further inform its policy moves, the RBI announced plans to conduct a nationwide survey on digital payment usage. The goal: to gain deep insights into transaction behavior, challenges faced by users, and areas needing innovation. This data will help shape strategies to enhance both inclusion and payment system efficiency.
Custom Solutions for Real Needs
RBI Deputy Governor M. Rajeshwar Rao highlighted the need for flexible, context-aware products—like seasonal savings schemes, variable repayments, and locally adapted services. These customer-first offerings, he said, would ensure that India’s diverse population receives tailored solutions that meet their financial realities.
The RBI is not just building apps—it’s building bridges. With this bold initiative, India moves one step closer to a future where no citizen is left behind in the digital financial revolution.
