Keywords
Financial
Financial Knowledge
Financial Inclusion
India
OECD
INFE
NCFE
G20
How to Cite
Abstract
Financial literacy is a critical element of economic empowerment and sustainability, essential for understanding complex financial products and services. This study examines the situation of financial literacy in India with a focus on gender disparities and regional variations. Day by day, the need for comprehensive financial knowledge is increasing as economies become more complex at the international level. Secondary data from NCFE surveys (2013 and 2019), Visa's International Financial Literacy Barometer (2012), and the G20/OECD INFE Report (2017) have been used. There has been a noticeable move from a ‘spending-centric’ to a ‘savings-oriented’ mindset among the Indian population. India’s score in ‘Financial Knowledge’ stands at 3.7, slightly below the G-20 average of 4.3; India is better in ‘Financial Behaviour’ with a score of 5.6, marginally higher than the G-20 average of 5.4; ‘Financial Attitudes’ in India score lower at 2.6, against an average of 3.0; the overall ‘Financial Literacy’ score for India is 11.9, below the G-20 average of 12.7. This highlights that while India performs well in certain aspects like risk understanding and financial monitoring, there is a critical need for improved education in basic financial principles, savings, and investment diversity.
References
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