Does the Digital Payment System Affect the Poverty Score in India?

This research aims to study the relationship between financial inclusion efficiency (FIE) and poverty score. The data for this research includes 28states and 3 union territories of India. A data envelopment analysis (DEA) is a popular and effective tool revealed by literature research studies to assess countries' financial inclusion levels. This study used a panel data model with DEA wherethe Poverty Score (PS) is presented as the dependent variable, and the independent variables selected are Financial Inclusion Efficiency (FI_CRS), Number of ATMs (No_ATM), and Literacy Rate (Lit_rt). From the optimal weights of the DEA model, descriptive statistics, correlation matrix scores, and endogeneity test results, the results of the study show that there is a significant impact on poverty scores by financial inclusion efficiency. The Financial Inclusion Efficiency (FI_CRS) is significant and negative which signifies that there is a negative relationship between Financial Inclusion Efficiency (FI_CRS) and Poverty Score (PS). Thus, this research shows that the rise in fie resulted in a decrease in the Poverty Score of 28 Indian states and 03 union territories.