National Strategy for Financial Inclusion 2025-2030: Will the Panch-Jyoti Approach be the Panacea?

India’s National Strategy for Financial Inclusion (NSFI) 2025–30 marks a decisive shift from an access-centric approach to one focused on financial well-being. Building on near-universal account ownership achieved during NSFI 2019–24, the strategy recognises that access alone has not translated into sustained usage or welfare gains. Drawing on Global Findex evidence, we highlight persistent gaps in digital payments, formal savings and credit usage despite high account penetration. In this light we find that the Panch-Jyoti framework of NSFI, emphasising (i) improving the availability of financial services, (ii) gender-sensitive inclusion, (iii) livelihood linkages, (iv) financial education, and (v) customer protection. It aligns financial inclusion with the Sustainable Development Goals and adopts an ecosystem approach integrating digital public infrastructure, skilling and social protection. While the strategy offers a candid diagnosis of last-mile challenges—particularly within the Business Correspondent model and grievance redressal—it relies heavily on coordination and incremental reforms. Its effectiveness will ultimately depend on sharper implementation, stronger incentives and measurable improvements in household financial well-being.