Role of Literacy Level in Financial Inclusion in India: Empirical Evidence

Abstract

 Abstract—Sustainable development of a country is closely related to the level of inclusion of the population into the financial net. Financial Inclusion is the issue at global level. Various authors have developed the Financial Inclusion Index based on different dimensions.The present study tries to assess the correlation between the Usage Dimension of Financial Inclusion Index and literacy level in India. Correlation has been statistically tested by using Karl Pearson coefficient of correlation. The results depict a large variation in extent of correlation among the different states of the country with a very low correlation at the national level. Thus, the Government should promote the use of Information Communication Technology models like biometric ATM, telecentres to achieve Financial Inclusion in India as these models does not compulsorily requires high literacy levels.