SOCIO-ECONOMIC BASED DIFFERENTIATION IN FINANCIAL LITERACY AND ITS ASSOCIATION WITH FINANCIAL INCLUSION IN UNDERDEVELOPED REGIONS: A CASE STUDY IN INDIA

In the recent developments, financial inclusion is considered as a one of the key determinant and largely important for the development of rural communities of regions which are not only have deficiency of resources but also relevant for the communities which are facing socio-economic deprivation. On the other side, financial literacy is also considered as a one of the major aspect which determines the standing and degree of financial inclusion. Financial literacy reflects the capability and potential of an individual to understand finance and to take effective decisions regarding the use and management of individual or households finance. The present study is an attempt to determine the differentiation in the level of financial literacy on the basis of socio-economic variables. Further, this study has also focused to understand the level of impact of financial literacy on financial inclusion. For examining the financial inclusion, five criterions were demarcated; being a bank account holder, frequency of using bank account,User of mobile banking and insurance and institutional credit holders. Financial literacy was found high among males, higher income groups and among the younger population while it was low among Scheduled caste and older age individuals. Further,the study also found that financial literacy has strong association with financial inclusion and have positive impact on the financial inclusion