Financial Literacy

Financial wisdom from Rajendra Kumar Sinha:

Financial literacy is the possession of a set of skills and knowledge that allows individuals to make informed and effective decisions with regard to their financial resources. It helps them to become self sufficient and achieve financial stability; else they become victims of predatory lending and fraud.

Financial literacy is not yet a priority for an average Indian; 76 % of India's adult population does not understand the basic concepts.

The goal of National Strategy for Financial Education and initiatives of other market participants like banks, stock exchanges, broking houses, MF and insurers is to change Indian perspective of financial management.

Financial education helps to make well-informed decisions, encourages responsible financially behaviour.

Financial education can help initiate a plethora of positive changes in the economy of a country.

One of the primary objective is to provide the masses access to financial services at an affordable cost.

It is essential that all stakeholders- including government agencies, banks, financial institution and consumers must work in synergy for achieving financial literacy.

Source: Indian Management, August 2018.