Vocational training and financial literacy: Blending digitization process of self help groups in India

The financial SHG are an important identity in the Indian rural financial sector; their role in mobilizing funds in rural sector cannot be ignored in the objective of Financial Inclusion of Indian Economic System. The historical date in the Indian Economy, 8th November 2016, The “D” movement i.e. Demonetization has compelled the adoption of other “D” in the financial sector of the Indian Economy i.e. Digitization of the Banking and Financial Systems. Post demonetization, digital economy is the fore requisite for successful working of the financial system in India. Digitalization of banks has compelled imparting of vocational training and financial literacy to these villagers so that they may use the banking system to their optimum efficiency. This research paper is an attempt to highlight the importance of imparting vocational training and financial literacy as the pre requisite for digitization of SHGs in India. The study concludes that financial literacy and vocational training may not be the only requirement for the process of digitization of SHG, but, the blend of these two elements in the overall process offinancial inclusion would definitely increase the rate of successful digitization of SHGs in India.”