Volume : 3, Issue : 3, March - 2014

Financial Literacy an Essential Prerequisite for Financial Inclusion

Pratima Trivedi, Saumya Trivedi

Abstract :

 Financial system in a country is the backbone of economy. But it can bear its fruits only when properly utilized by the population. In a country like India where there is high number illiterates , uneducated people financial literacy is the utmost requirement for any financial product to be successful. This research paper tries to find out level of financial literacy in our country and steps initiated for making population financially literate. In the paper definition of financial literacy is considered on the basis of the definition of OECD(organization for economic cooperation and development) an International organization for economic progress and world trade. On the basis of the definition financial literacy is judged by the level of financial knowledge , financial behavior and financial attitude of the population. Research methodology followed is survey through questionnaire. Sampling used is convenient sampling from rural as well as urban area. Care has been taken to cover people from different gender, income group, age group etc. But limitation of the study is that it could cover data from Barabanki ,Mohanlalganj and Lucknow districts only. Study has tried to find out status of financial literacy at different strata and the steps initiated by different organization towards financial literacy and suggestions/ conclusions.