Development of Inclusive Finance Amidst Pandemic in India: A Conceptual Framework

The study aims to develop a conceptual model for inclusive finance regarding any economic or health crisis through microfinance. The conceptual framework seeks to show how different factors help microfinance institutions navigate the COVID-19 health crisis and reach the ultimate aim of Inclusive Finance. The paper is theoretical and develops a conceptual framework for establishing Inclusive Finance (IF) and Microfinance Institutions access (MFIA) in emerging economies like India. The study provides the dimensions of the inclusion of the informal sector (IIS) as a mediator between the relationship of MFIA and IF. Further, the study designs the conceptual framework and suggests the importance of the Government Intervention (GI) as a moderator and includes the informal section (IIS) as the mediator between the MFIA and the IF. The framework also offers the factors affecting MFIA are Financial Literacy (FL), Flexible Repayment Model (FRM), Digital Financial Services (DFS), and Corporate Disclosure (CD) during COVID -19. The study will help the researchers, practitioners, and policymakers redesign the policies for specific vulnerable sectors like microfinance to absorb the shock-like health crisis- COVID -19 or any financial shock and reach their aim of inclusive finance.