• Dr. Gayathri Devi A
• Ms. Thejaswini P K

The transformation of digital technology plays an important role in influencing India's economy by driving innovation, productivity, and fostering inclusive growth. Digital transformation occurs when a company integrates digital technology to develop new or modify current products, services, and operations by converting business processes into a digital format. Rural banks must adopt digital transformation as a strategic necessity to foster economic growth. It tackled financial inclusion challenges while also improving efficiency, granting credit access, boosting local economies, and benefiting rural communities' well-being. This research analysed how rural Banking is affected by digital transformation and pinpointed the obstacles encountered when implementing digital transformation projects in rural banking. The research utilized secondary data and found that while digital transformation has significantly improved financial inclusion, transaction efficiency, and service delivery in rural banking, its full potential is hindered by persistent challenges such as inadequate infrastructure, low digital literacy, resistance to change, and regulatory rigidity.

Digital Transformation, Rural Banking, Financial Inclusion.

"Empowering Rural Banking: The Impact And Challenges Of Digital Transformation", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.12, Issue 8, page no.e330-e333, August-2025, Available :http://www.jetir.org/papers/JETIR2508447.pdf

"Empowering Rural Banking: The Impact And Challenges Of Digital Transformation", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.12, Issue 8, page no. ppe330-e333, August-2025, Available at : http://www.jetir.org/papers/JETIR2508447.pdf