Page 35 - Banking Finance April 2019

ARTICLE

of financial literacy among the Asia-pacific region, which proves that the lack of financial literacy is the main stumbling
block here. In the countries like Norway, Sweden and Denmark, 71% people are financially literate, in other European
countries, 52%, even in BRICS countries, 28% possess the basic knowledge of saving and credit whereas in India only 24%
people are financially literate. The State/UT wise status of Financial Literacy in India (2015) is given as under:-

Name of state/UT General Financial Name of state/UT General Financial
Literacy Literacy Literacy Literacy
(in %age) (in %age) (in %age) (in %age)
Andhra Pradesh 60 23 Mizoram 77 6
Arunachal Pradesh 55 10 Nagaland 68 8
Assam 61 20 Odisha 64 9
Bihar 50 8 Punjab 67 13
Chhatishgarh 60 4 Rajasthan 56 20
Goa 80 50 Sikkim 73 8
Gujarat 68 33 Tamilnadu 72 22
Haryana 65 21 Tripura 67 21
Himachal Pradesh 73 16 Uttar Pradesh 57 10
Jammu Kashmir NA NA Uttarakhand 68 23
Jharkhand 56 15 West Bengal 67 21
Karnataka 67 25
Kerala 84 36 A & N Island 82.43 14
Madhya Pradesh 59 23 Chandigarh 81.19 38
Maharashtra 73 17 Daman and Dui 79.55 29
Manipur 69 36 Dadra and Nagar Haveli 64.32 31
Meghalaya 60 24 Delhi 80.76 32
Pudducherry 80.67 21
Lakshadweep 87.95 22
Data compiled from National Centre for Financial Education Report (11)

Now, let us ponder over the concept- "Financial Literacy is the significance of making thoughtful and informed decisions
the combination of awareness, knowledge, skills, attitude, about financial matters:-
and behaviours, necessary to make sound financial decisions Y The gap between the complexities increasing day by
and ultimately achieve individual financial well-being". In day, in the financial markets and the information
other words, it is the confluence of financial, credit and debt available to masses, has been making more and more
management and the knowledge that is necessary to make difficult for the common people, to choose the best
financially responsible decisions-decisions that are integral possible thing among the so many alteratives available.
to our everyday lives. It includes understanding, how to Y For including the excluded and also augmenting their
operate one's bank account, how a Debit/Credit card works financial stability.
and how to avoid debt. It impacts the daily issues, an
average family makes, when trying to balance the budget, Y Today the amount paid by the Indian Govt. towards
buy a house, fund the children's education and ensure an social security is barely minimum and in future it may
income at retirement. not be there a tall, as reported by concerned aurhorities
that by 2033, the Social Security fund trust may be
Now I would like to discuss the five trends that demonstrate depleted.

BANKING FINANCE | APRIL | 2019 | 35