Abstract

Digital microfinance has emerged globally as an innovative mechanism for extending financial access to underserved populations. However in India its implementation encounters several structural cultural technological and socio-economic constraints that challenge its feasibility. This research paper undertakes a conceptual analysis of the perceived impossibility of digital microfinance in India by examining the disconnect between digital systems and the lived realities of low-income borrowers. Although financial inclusion initiatives such as the Pradhan Mantri Jan Dhan Yojana Aadhaar-based verification and Unified Payments Interface have expanded digital access the transition to full digital microfinance remains limited. Structural issues such as inadequate digital literacy gendered access to mobile devices algorithmic biases trust deficits linguistic barriers and rural infrastructural gaps shape resistance to digital financial systems. The paper further highlights how informal borrowin