Empirical Study on Relationship between Financial Inclusion and Financial Literacy and Its Impact on Consumer Financial Behaviour: A Theortical Framework of Unbanked People
Published: 2019
Author(s) Name: Pooja Bhagwan |
Author(s) Affiliation: Assistant Professor, P.G. Deptt of Commerce, Sri Guru Gobind Singh College, Chandigarh, India.
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Abstract
Financial Education and Financial Inclusion plays an important role in framing the Reserve Bank of India’s guidelines
developed for overall national development. Financial Inclusion (FI) and Financial Literacy (FL) are the two pillars of our economy: FL
encourages demand side – making awareness of money to be claimed and FI performs as giving side providing the financial market/services.
FI means that it is the procedure of allowing admittance to suitable financial products and services essential by susceptible group, such as
unbanked groups at a reasonable cost in a fair and apparent approach by various financial institutions. FL is the learning and accepting
of various money linked areas. It helps in analyzing and supervising personal finance in a realistic way and involves the information of
building right decisions. The survey was conducted to analyze the impact of FL and inclusion on the consumer financial behavior. The study
was conducted in the different nearby areas of Chandigarh and 50 respondents had been selected basically unbanked people. The survey
has been done with the help of comprehensive questionnaire. The study reveals the positive and significant relation between the FL and the
financial behavior. In this research, review has been done regarding the complexity of the issue of FI, the linkages between FL and FI, its
accessibility, and its impact on consumer financial behavior.
Keywords: Financial Education, Financial Literacy, Consumer Financial Behavior, Financial Services
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