Why is Financial Literacy important?
In India: 59 per cent of adult populations have bank accounts. Thus, 41 per cent of the adult population is financially excluded. The un-banked segment is much higher at 61 per cent in rural areas. Only 10 per cent life insurance cover 2 per cent credit card.
Financial Literacy is important as financial markets have become increasingly complex and there is information asymmetry between markets and the common people. It is difficult for the common people to make informed choices.