Journal of Commerce and Accounting Research

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Empirical Study on Relationship between Financial Inclusion and Financial Literacy and Its Impact on Consumer Financial Behaviour:A Theortical Framework of Unbanked People


Affiliations
1 Deptt of Commerce, Sri Guru Gobind Singh College, Chandigarh, India
     

   Subscribe/Renew Journal


Financial Education and Financial Inclusion plays an important role in framing the Reserve Bank of India’s guidelines developed for overall national development. Financial Inclusion (FI) and Financial Literacy (FL) are the two pillars of our economy: FL encourages demand side – making awareness of money to be claimed and FI performs as giving side providing the financial market/services. FI means that it is the procedure of allowing admittance to suitable financial products and services essential by susceptible group, such as unbanked groups at a reasonable cost in a fair and apparent approach by various financial institutions. FL is the learning and accepting of various money linked areas. It helps in analyzing and supervising personal finance in a realistic way and involves the information of building right decisions. The survey was conducted to analyze the impact of FL and inclusion on the consumer financial behavior. The study was conducted in the different nearby areas of Chandigarh and 50 respondents had been selected basically unbanked people. The survey has been done with the help of comprehensive questionnaire. The study reveals the positive and significant relation between the FL and the financial behavior. In this research, review has been done regarding the complexity of the issue of FI, the linkages between FL and FI, its accessibility, and its impact on consumer financial behavior.

Keywords

Financial Education, Financial Literacy, Consumer Financial Behavior, Financial Services.
Subscription Login to verify subscription
User
Notifications
Font Size


  • Agarwal, P. (2015). Financial literacy: When, what and how. IFMR Lead, article in Ideas for India.

  • Agarwal, S., Driscoll, J., Gabaix, X., & Laibson, D. (2009). The age of reason: Financial decisions over the lifecycle with implications for regulation. Brookings Papers on Economic Activity, 2, 51–117.

  • Ajzen, I. (1991). The theory of planned behaviour. Organizational Behavior and Human Decision Processes, 50(2), 179–211.

  • Arora, R. U. (2014). Access to finance: An empirical analysis. The European Journal of Development Research, 26(5), 798–814.

  • Atkinson, A., & Messy, F. (2012). Measuring financial literacy: Results of the OECD/International Network on Financial Education (INFE) pilot study. Working Paper No. 15.

  • Beal, D., & Delpachitra, S. (2003). Financial literacy among Australian students. Economic Papers, 22(January), 65-78.

  • Bhushan, P., & Medury, Y. (2014). An empirical analysis of inter linkages between financial attitudes, financial behaviour and financial knowledge of salaried individuals. Indian Journal of Commerce and Management Studies, 5(3), 58.

  • Brown, M., & Graf, R. (2013). Financial literacy and retirement planning in Switzerland. Numeracy, 6(2).

  • Calamato, M. P. (2010). Learning financial literacy in the family. Unpublished Master’s thesis, The Faculty of the Department of Sociology, San José State University.

  • Chakrabarty, K. C. (2011, November). Financial inclusion and banks: Issues and perspectives. RBI Bulletin.

  • Chinen, K., & Endo, H. (2012). Effects of attitude and background on personal financial ability: A student survey in the United States. International Journal of Management, 29(1), 33.

  • Clarke, M. D., Heaton, M. B., Israelsen, C. L., & Eggett, D. L. (2005). The acquisition of family financial roles and responsibilities. Family and Consumer Sciences Research Journal, 33(4), 321–340.

  • Cole, S., Sampson, T., & Zia, B. (2009). Valuing financial literacy training. World Bank.

  • Cole, S., & Shastry, G. K. (2009). Smart money: The effect of education, cognitive ability and financial literacy on financial market participation. Harvard Business School.

  • Criddle, E. (2006). Financial literacy: Goals and values, not just numbers. Alliance, 34, 4

  • Frączek, B., Bobenič Hintošová, A., Bačová, M., & Siviček, T. (2017). Simultaneous use of the financial literacy level and the financial inclusion degree as a result of financial education efficiency in Visegrad Group countries. Journal of Economics & Management, 27, 5–25.

  • Frijns, B., Gilbert, A., & Tourani-Rad, A. (2014). Learning by doing: The role of financial experience in financial literacy. Journal of Public Policy, 34(1), 123–154.

  • Hastings, J. S., Madrian, B. C., & Skimmyhorn, W. L. (2013). Financial literacy, financial education, and economic outcomes. NBER Working Paper No. 18412, Issued in September 2012, revised in October 2012, Chicago.

  • Khalily, M. A. B. (2016). Financial inclusion, financial regulation, and education in Bangladesh. ADBI Working Paper Series, 621.

  • Khan, M. N. A. A., & Siang, L. H. (2013). Public investor perception towards internet financial reporting in Malaysia.

  • Khan, M. N. A. A., & Omar, N. A. (2013). A study of importance items of internet financial reporting: A case of Malaysian auditors. Middle-East Journal of Scientific Research, 17(3), 395–406.


Abstract Views: 223

PDF Views: 0




  • Empirical Study on Relationship between Financial Inclusion and Financial Literacy and Its Impact on Consumer Financial Behaviour:A Theortical Framework of Unbanked People

Abstract Views: 223  |  PDF Views: 0

Authors

Pooja Bhagwan
Deptt of Commerce, Sri Guru Gobind Singh College, Chandigarh, India

Abstract


Financial Education and Financial Inclusion plays an important role in framing the Reserve Bank of India’s guidelines developed for overall national development. Financial Inclusion (FI) and Financial Literacy (FL) are the two pillars of our economy: FL encourages demand side – making awareness of money to be claimed and FI performs as giving side providing the financial market/services. FI means that it is the procedure of allowing admittance to suitable financial products and services essential by susceptible group, such as unbanked groups at a reasonable cost in a fair and apparent approach by various financial institutions. FL is the learning and accepting of various money linked areas. It helps in analyzing and supervising personal finance in a realistic way and involves the information of building right decisions. The survey was conducted to analyze the impact of FL and inclusion on the consumer financial behavior. The study was conducted in the different nearby areas of Chandigarh and 50 respondents had been selected basically unbanked people. The survey has been done with the help of comprehensive questionnaire. The study reveals the positive and significant relation between the FL and the financial behavior. In this research, review has been done regarding the complexity of the issue of FI, the linkages between FL and FI, its accessibility, and its impact on consumer financial behavior.

Keywords


Financial Education, Financial Literacy, Consumer Financial Behavior, Financial Services.

References