RBI„S Initiative in Promoting Financial Literacy A Study with Special Reference to Mumbai

Abstract

Financial literacy is the process by which investors improve their understanding of financial markets, products, concepts and risks. Financial literacy is important because it benefits not only the consumers, but also the financial system and the economy. Financial literacy causes consumers to behave in a particular way, and develop particular attitudes concerning money. The microeconomic benefits to the household extend out to produce macroeconomic benefits for the economy and the financial system and thus it is an important function of the central bank of any country to develop adequate financial literacy among its people. The Reserve bank of India has been actively engaged in development of various financial literacy programs in the recent years This study is motivated by the need to determine common man's ability to understand and use financial information, the impact of financial literacy programs and the role of central bank in creating more financially savvy consumers. The major objectives of this study are to study and understand the different financial literacy programs of the Reserve bank of India and to measure the effectiveness of financial literacy programs. An attempt has also been made to determine the level of financial literacy among target group and to identify the factors having an influence on financial behavior and attitude. The study has great implication for policy makers and developers of financial literacy programs .The study will be particularly useful to investors in better financial decision making and creating awareness about the importance of financial education. It will also provide a platform for future research covering the role of SEBI, government, academicians, private banks and other financial bodies in field of financial literacy