Financial Literacy Propulsion for the Indian Financial System

Abstract

Lack of financial literacy is one of the major reasons behind large-scale financial exclusion in India. A concentrated effort from the government and market regulators is required to improve the situation. Countries across the world are looking for ways and means to enhance financial literacy because they are now convinced that it is the backbone for a robust and efficient financial climate, which is a strong foundation for economic growth. The importance of financial literacy is also increasing because of the integration and complexity of financial markets, availability of a variety of financial products and frequent addition of new products. The government and the market regulators play a key role in highlighting the importance of financial literacy and also aware people in this regard.