Financial Inclusion and Financial Literacy: Two Pillars of Indian Economy

Abstract

Financial inclusion may be defined 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. According to the World Bank, globally,
about two billion people make absolute use of the set of formal
financial services. Also, about half of the adult population in the most
disadvantaged households are either un-banked or under-banked
(Nanda and Kaur 2017). To create an awareness, all the legal bodies
associated with Financial Inclusion and Financial literacy have
started with many initiatives to increase the level of financial literacy.
As per the RBI annual report (2016-17), financial literacy level has
been increased in knowledge, attitude and behavior parameters.