Importance of Financial Literacy in Financial Development
Author : Dr. Narinder Pal Singh
Abstract :
Financial literacy is having utmost importance in the current complex financial environment as the needs of human beings and the range of financial products have been becoming complex day by day. Everybody must be educated to take informed selections and right decisions on various financial matters. Financially literates can take good financial decisions and manage funds efficiently. Financial literacy is the ability and awareness, to use knowledge and skills to manage one’s financial resources effectively for lifetime financial security. But most of the Indian population is financially excluded as they don’t have financial awareness about various financial products and services which ultimately affects the economic and financial development of the country. People are reluctant to transact with formal financial institutions as they are unaware about the benefits attached with it. Govt has initiated various measures and directions to support financial literacy and to bring everyone under the formal financial stream.
Keywords :
Finance, Financial literacy, Financial Inclusion, Banks.
