Year : 2019, Volume : 9, Issue : 3
First page : ( 7) Last page : ( 13)
Online ISSN : 2249-7315. Published online : 2019 March 1.
Article DOI : 10.5958/2249-7315.2019.00006.6

Role of Literacy in Enhancing Inclusive Finances in India

Dr. Srivastava Garima*,*

*Associate Professor, LBSIMDS, Lucknow, India

* garima1480@gmail.com

Abstract

Even after so many years of independence, a large section of Indian population especially rural sector still remain deprived of using banking and financial facility. This situation has led to financial instability and insecurity among the low income group who do not have access and knowledge to financial products and services. The status of financial inclusion in India, despite of taking a lot of efforts by the government is not very encouraging. The review of aggregate macro data indicates that household debt–GDP ratio of 8.9% is among the lowest compare to neighboring growing economies like People's Republic of China at 36.8% and Thailand at around 83.0%.4 The rural India which constitute about 60% of the India population is the most deprived lot from the benefits of financial inclusion. GOI defines Financial inclusion as the process of ensuring access to financial services and timely and adequate credit where needed by vulnerable groups such as weaker sections and low income groups at an affordable cost. As per census 2011, only 54% of household availing banking facility in rural sectors whereas little bit more i.e. 67.8% urban households is availing banking services. It has grown in the last ten years not up to satisfactory level. The number of bank branches per lakh population is only 7.8 (rural and semiurban areas) and18.7 in urban areas. The research aims at studying the level of financial inclusion in India and Role of literacy and financial literacy for the success of financial inclusion and economic growth.

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Keywords

Financial Inclusion, Financial Literacy, Financial Services, Index of Financial Inclusion, Microcredit.

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