A Perspective on Financial Literacy and Inclusion in India

Abstract

The financial inclusion is a crucial element in the fight against poverty. The ability to take effective decisions regarding the use and management of money with required informed judgments is financial literacy. It enables a person to understand the importance of savings and thus regarded as an important requirement for functioning effectively in modern society. Large sections of the rural population borrow from moneylenders (their sole resource) at a very high and unreasonable cost causing slavery and have no access to any financial services. The article highlights that considering the immensely large population of the country, the progress on financial inclusion is not enough and financial institutions and banks need to manage their efforts towards financial inclusion since the development of the economy is impacted and linked with the extent of financial inclusion in the country. Access to finance by the underprivileged group, poor, and disadvantaged is essential to remove poverty on one hand and the economic growth on the other.