A study on relevance of financial literacy in achieving financial inclusion

This paper tries to show the relationship of Financial Inclusion (FI) and Financial Literacy in India. Majority of the people in India lives in rural parts of the country. Hence, development of rural India is a key to the economic growth of the country. Financial inclusion or inclusive financing is the delivery of financial services at reasonable costs to sections of underprivileged and low-income segments of society. Financial literacy is the ability to understand how money works in world. It is mainly used in connection with personal financial matters. Thus if RBI succeeds in achieving Financial Literacy in rural India, it will be very easy to get people enrolled in banks and we will achieve our 2020 vision of Financial Inclusion very easily.