Prior to Jan Dhan, an estimated 35% of Indian households did not have a bank account. Morgan Stanley estimates that most households now have access to a bank account, while the surge of mobile phone usage makes it easier for Indians to manage their accounts and conduct cashless transactions using their phones.

Currently, India has around 800 million unique mobile users, and about 430 million have Internet access—a third of India's population. “We believe Internet access will double in the next 10 years and we estimate that 915 million Indians will be on the Internet by 2026,” says Ridham Desai, Head of India Research. Further, the government is further nudging the country toward cashless payments by restricting values of cash transaction and incentivizing digital payments; its target is to increase digital transactions six-fold this year.

Yet another boost to digitization is demographics. India has among the highest numbers of young people entering the work force over the next two decades. “These individuals are not attached to old banking habits and they will have access to mobile phones and smartphones," says Desai. “We would expect them to adopt digital banking much more quickly than past generations."