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"Financial inclusion will only succeed when there is transparent government, honest government. For the honest government to succeed, it is very important that things are available digitally which you can identify, quantify, research and deliver.
"Therefore financial inclusion and digital inclusion go hand-in-hand," Prasad said at a UN Conclave on financial inclusion.
The minister cited the example of linking driving licence with Aadhaar.
Prasad said earlier, if a driver's licence was revoked due to some offence, he went to another state or place to get a new licence.
But linking driving licences with Aadhaar is curbing such practices and leading to better governance, Prasad said.
The minister also said questions around privacy are being raised with increase in digitisation.
"I know this question will be asked if not to IT minister of India then to Law minister of India. The Supreme Court has held right to privacy is not an independent right. It is part of Article 21 and it is not absolute as other fundamental rights of India are not absolute but let me assure you that we are committed to respect the judgement and committed to respect privacy of Indians," Prasad said.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)