Financial Literacy In India – A New Way Forward

Abstract

The concept of Financial Literacy can be presented as a combination of financial awareness, knowledge, skills, attitude and behaviour necessary to make sound financial decisions and ultimately achieve individual financial well-being. The study is made to put light on financial literacy, its need and importance in the current economic situation in India. It will certainly help in understanding the basic need for being financially literate or educated to sustain, survive and compete in this changing dynamic socio-economic environment. It may prove useful for financial institutions involved in providing financial services, investors, Government at center and states, academicians, general people and most importantly to the research scholars undergoing their research on Financial Education, Literacy and Inclusion related areas. The primary objective of the study is to explore the need and importance of financial literacy and to put light on different types of financial services available at present time from different financial institutions with special reference to banks and insurance companies in India. It is purely a descriptive study. Data are collected from secondary sources especially from Internet Sources, Research Papers, Journals, Periodicals; Conference Proceedings and from different books. Concepts are presented in a lucid manner to satisfy the primary objective of the study. Financial literacy can be considered as the need of the hour. Financial Inclusion can be fruitful in true sense if people can understand the benefits of financial services provided by Government and Financial Institutions from time to time. It’s not enough to only be literate, one is to be “Financially Literate”.