A STUDY ON IMPACT OF AADHAAR-LINKED WELFARE REFORMS ON INCLUSIVE BANKING IN INDIA: A FISCAL POLICY PERSPECTIVE

ABSTRACT Financial inclusion has become a central objective of India’s fiscal policy reforms over the last decade. The integration of Aadhaar into welfare delivery mechanisms has significantly reshaped the structure of public expenditure management. By linking beneficiaries’ biometric identity with bank accounts through the Direct Benefit Transfer framework, the government has attempted to reduce leakages, enhance transparency, and expand formal banking access. This study evaluates the influence of Aadhaar-linked welfare reforms on inclusive banking in India using secondary data sources. The findings indicate that identity-based targeting has strengthened account ownership, increased digital transaction usage, and improved fiscal efficiency. However, structural challenges such as digital illiteracy and authentication failures remain concerns. The study concludes that Aadhaar-linked reforms represent a significant fiscal innovation supporting inclusive growth.