Digital economy is rapidly developing worldwide as the largest driver of innovation, competition, and growth. Even though many people have been excluded, tremendous opportunities are available for the digital economy to support financial inclusion for sustainable economic development. Digital India is an initiative taken by the Indian Prime Minister Shri Narender Modi on 1st July, 2015 to ensure that the governmental services are made available electronically to the citizens. The concept of digital banking under digital India will be very helpful in financial inclusion. This paper highlights the effect of digital India initiative on the concept of financial inclusion. The digital India initiative can easily connect the different groups of society and can help to achieve the objective of financial inclusion through digital banking.