ANALYSIS OF LEVEL OF FINANCIAL LITERACY: A COMPARITIVESTUDYOFINDIA VS. OTHER DEVELOPED AND DEVELOPING NATIONS

Abstract

For the development of the economy of any nation, the financial system should be developed firstly, and for that theresidents should be aware of the financial concepts, markets and services. The term Financial Literacy and Financial Inclusion has become a buzz word and the reason behind this is Pradhan Mnathri Jan Dhan Yojana and the quotegiven by honourable Prime Minister Shri Narender Modi is “Sabka Sath, Sabka Vikas”. Financial Literacy is verylow world-wide and in the country like India, it is much lower. This paper tries to explore the level of financial literacy in India. The report given by NISM, 2014 that has been retrieved from National Centre for Financial Education website and Report on Financial Literacy around the world : Insights from Standard and Poor’s RatingServices Global Financial Literacy Survey.has been analysed. It was found that the level of financial literacy inIndiais 24% which is very low in comparison to the other developed and developing nations across the globe. Further thesuggestions are given to improve the level of financial literacy in India.