Financial Literacy, Financial Attitude: Pedictors of Financial Inclusion

Abstract

          Financial inclusion (FI) is the process of clinch access to financial services. It also provides affordable, timely and appropriate credit where susceptible groups such as vulnerable groups and low-income groups need it. In diverse countries like India, FI is animportant part of the development process. The collective efforts of government and regulatory agencies (institutions), the financial inclusion has improved in the country. However, FI hasnot reached the poorest and has many bottlenecks and challenges like lack of financial literacy, unawareness of financial services, digital illiteracy which need immediate attention(Hasan et al., 2021). Financial literacy is a predetermine factors that influence financial inclusion. The importance of financial literacy has increased significantly over the past several years among educators, community groups, businesses, government agencies and policy makers (Hogarth et al., 2002). Financial attitude is a state of mind and opinion of a person about finance. This study focuses on the demand side perspective with the purpose of examining the influence of financial literacy and financial attitude towards the financial inclusion among women (especially working women). The results show the positive relationship between financial attitude and financial literacy towards financial inclusion.