Financial Literacy: Challenges for Indian Economy

Abstract

Financial System Plays An Important Role In The Growth And Development Of A Nation. The Growing Complexity Of Financial Products Over The Past Decade, Coupled With Financial Innovations, Has Put Enormous Pressure And Responsibilities On Shoulders Of Financial Investors. Financial Services Are Becoming Freely Accessible, But, Increasingly Complex Financial Services Market Offers The Consumers Myriad Of Products With Intricate Features And Services, Which Leave Many People Ill Equipped To Cope Up With The Sophisticated Financial Needs. The Economies Around The World Have Increasingly Considered Financial Literacy As A Key Pillar For The Development Of Financial System Of A Country. As Financial Markets Become More Sophisticated And Households Assume A Growing Share Of The Responsibility And Risk For Financial Decisions, Financial Education Is Necessary To Ensure Sufficient Levels Of Investors And Consumer Protection As Wells As The Smooth Functioning Of The Financial Markets. Creating Financial Literacy Can Play A Critical Role In Equipping The Consumers With The Information, Fundamental Knowledge, And Skills To Evaluate Their Options And Enables Them To Understand The Implications Of Alternative Financial Decisions. Through This Paper, Author Would Explain Importance Of Financial Literacy And Challenges Faced By The Indian Economy In Inculcating Financial Literacy.