Naresh Major Project A7

A Study on
Financial Literacy Among Students in Rural Area of Rayalaseema
A Project Report Submitted to

JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY ANANTAPUR
In partial fulfilment of the requirements
for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
By
V. NARESH
Regd.No.20691E00A7
Under the Guidance and Supervision of

Dr. SHAHRUKH SALEEM
ASSISTANT. PROFESSOR
DEPARTMENT OF MANAGEMENT STUDIES
DEPARTMENT OF MANAGEMENT STUDIES

MADANAPALLE INSTITUTE OF TECHNOLOGY & SCIENCE
(UGC AUTONOMOUS)
(Affiliated to Jawaharlal Nehru Technological University Anantapur, Anantapuramu)
MADANAPALLE – 517 325.
ANNAMAYYA DISTRICT, A.P.
2020-2022
i
CERTIFICATE
This is to certify that the project report entitled “A STUDY ON FINANCIAL LITERACY
AMONG STUDENTS IN RURAL AREA OF RAYALASEEMA” submitted by V NARESH
(Reg.No.20691E00A7) under the guidance of Dr. SHAHRUKH SALEEM, ASST. PROFESSOR,
Department of Management studies for the award of Master of Business Administration to
Jawaharlal Nehru Technological University Anantapur, Anantapuramu, is a record of
independent project work undertaken by her/him under my supervision and guidance and the project
has not been submitted either in partial or whole for the award of any other degree or diploma of
any university.
Dr. SHAHRUKH SALEEM Dr. SREMMANT BASU

Project Guide Professor & Head
Department of Management studies. Department of Management studies.
INTERNAL EXAMINER EXTERNAL EXAMINER
ii
DECLARATION
I hereby declare that the project entitled “A STUDY ON FINANCIAL LITERACY AMONG
STUDENTS IN RURAL AREA OF RAYALASEEMA” is a bonafide work submitted to
Jawaharlal Nehru Technological University Anantapur, Ananthapuramu under the guidance and
supervision of DR. SHAHRUKH SALEEM, Assistant Professor, Department of Management Studies,
Madanapalle Institute of Technology & Science, Madanapalle, for the award of MASTER OF
BUSINESS ADMINISTRATION. It is a record of original work done by me and that the project
has not previously formed the basis for the award of any degree.
Date: V. NARESH
Place: Regd.No.20691E00A7
iii
iv
ACKNOWLEDGEMENT
I would like to thank all those persons who have contributed toward the successful completion of
the project work, I am glad to say that working on this project has been both illuminating and
enjoyable for me.
I have deep sense of gratitude to Dr. Shahrukh Saleem, MBA, Assistant Professor, Project
guide, Department of Management Studies, for his encouragement, guidance and valuable
suggestions throughout the project.
I take this opportunity to thank sri. Dr. N. VIJAY BHASKAR CHOUDARY GARU, PH.D.,
Secretary & Correspondent, MITS Dr. C. YUVARAJ, Principal, MITS and
Dr. SREMMANT BASU, Ph. D, Professor & Head, Department of Management Studies, for
their continuous support and encouragement.
My heartfelt thanks to my parents & friends for going out of their way to see that I successfully
implementing and completing this project. Their words of wisdom and patience were more than
a blessing.
I would like to thank all the faculty members of Department of Management Studies, MITS and
friends who directly and indirectly helped me to complete this project.
V. Naresh
Roll. No: 20691E00A7
v
LIST OF TABLES
Chapter and
Title Page No.
Table No
3.1 Descriptive Statistics Table for Question no 2 15
vi
4.1 Regression Result Output 55
4.2 Regression Anova Output 56
4.3 Regression Coefficients 56
4.4 Factor Analysis KMO and Bartletts Test Output 58
4.5 Factor Analysis Descriptive Statistics 58
4.6 Total Variance Explained 59
4.7 T test Result Output 60
vii
LIST OF GRAPHS
Chapter and
Title Page No.
Graph No.
3.1 Descriptive Statistics Figure for Question no 2 15
viii
4.1 Total variance explained in Screen plot 59
ix
CONTENTS
Chapter No. Title Page No.
CERTIFICATES i - iii
PLAGIARISM REPORT iv
ACKNOWLEDGEMENT v
LIST OF TABLES vi - vii
LIST OF GRAPHS viii - ix
1. INTRODUCTION 2–6
2. INDUSTRY AND COMPANY PROFILE 7 – 10
3. RESEARCH METHODOLGY 11 – 53
4. DATA ANALYSIS AND INTERPRETATION 54 – 60
5. FINDINGS, SUGGESTIONS & CONCLUSION 61 - 66
REFERENCES 67 - 68
ANNEXURE 69 - 73
x
Abstract
Abstract Financial literacy is increasingly important as it has become essential that individuals
acquire the skills to be able to survive in modern society and cope with the increasing diversity and
complexity of financial products and services available. Financial literacy is the ability to make
informed judgments and to take effective decisions regarding the use and management of money. It
enables individuals to improve their overall wellbeing and to plan for their future security. The main
objective of the study is to analyse the level of financial literacy among the college students by
evaluating the influence of various demographic factors like gender, age group, discipline of study,
level of study, annual household income, parent’s occupation and source of income to the students.
It is the possession of the set of skills and knowledge that allows an individual to make informed
and effective decision with all of their financial resources. This study is an evaluation to underpin
the relationship between financial literacy level and nature of financial behaviour of undergraduates
and post graduates of Rayalaseema. Knowledge on money management, savings, investments, and
credit has been considered to measure the financial literacy level and students current and past
manners related to same dimensions is used to measure financial behaviour using questionnaire.
In this study, the sample responses received were from 394 students. The results were analysed
based on gender and qualification. Significant relationships were found between financial literacy
and student characteristics.
1
Chapter - I
Introduction
2
INTRODUCTION
” Financial literacy is the education and understanding of various financial areas including topics
related to managing personal finance, money and investing.”
Financial literacy is the ability to make informed judgements and to take effective decisions
regarding the use and management of money. Financial literacy is therefore a combination of a
person’s skills, knowledge, attitudes and ultimately their behaviours in relation to money.
Long term investments and future aspects of emergency needs, regarding these things people must
need a proper plan. And the students also should have a strong financial literacy about their personal
finances to take better decisions on investments and financial actions. This is very helpful for the
students when they start to earn. Now a days life insurance and medical needs are also very
important they need to manage these things without any disturbances. The present situation is not
suitable to younger generation to make correct decisions in the financial aspects. They are lacking
the knowledge on basic finance which is needed everywhere. They love spending rather than saving.
Students should have an aware on their future regarding the habit of saving and investing their
money in various financial products(instruments). There are many financial facilities and services
are available in the banks and financial bodies. These things should be fully aware by the students.
This makes students to take second decisions in their actions and to plan the safe and better future
with a financial backup. It makes students not to be dependent on another person.
In the financial inclusion financial literacy is an integral part. It is about changing financial patterns,
activities, behaviour of individuals. It is not just about importing the financial information and
knowledge.
The People should take action by themselves without falling on others, this is the ultimate goal.
When people get to know about the financial products and they need to analyse the demerits and
merits of the financial product services and suitability of their product for the needs, then the people
are in a good and better position to choose what they really want and feel empowered in a meaning
full way.
3
Financial literacy is a great skill which is essential for life. And this has a great impact on families,
individuals wellbeing on the broader economy. The country’s which are developed and developing
have become increasingly concerned about their citizens in the level of financial literacy particularly
among young people. Ultimately the literature suggests that, worldwide, financial literacy is a major
reason for mounting consumer debt, reducing saving rates, inadequate planning for retirement, poor
mental health, divorce and variety of other negative and unhappy experiences, because of emotional
stress and lower self-esteem and depression. These things have been changed the financial position
of the financial literacy and recognised the importance of financial literacy, and financial literacy
skills and it was contributed to improved financial decision making. This decision making has
greatly impacted the house holds but also on economic and financial stability of a country and it
terns all negative into positives.
The OECD defines financial literacy as a combination of awareness, knowledge, skill, attitude and
behaviour necessary to make sound financial decisions and ultimately achieve individual financial
well being.
In the first place, the current and future monetary decisions looked by the present youth are probably
going to be more difficult than those of past ages, given the more noteworthy intricacy in the
monetary items, administrations and frameworks now accessible.
Second, youngsters will likely bear more monetary endangers in adulthood because of expanded
future, a diminishing in government assistance and word related benefits, and dubious financial and
work possibilities.
Third, furnishing youngsters with legitimate monetary training may likewise assist with spanning
monetary proficiency aberrations because of contrasts in their financial status. Late examinations
displayed blended results fair and square of monetary proficiency among youngsters, especially
college understudies in both created and agricultural nations. This proposes that extra factors merit
assessment for their effect on monetary proficiency among the young. All the more critically, the
proof show that the degree of monetary education among female college understudies is low
contrasted with their male partners. This review, accordingly looks to additionally investigate an
understudied piece of the globe and build up existing information and models by dissecting the
degree of monetary proficiency among college understudies in Rural region.
4
Literature review
Agarwalla Sobhesh Kumar, Barua Samir, Jacob Joshy, Jayanth R. Varma (2012) conducted a
study among 3000 individuals, and found that financial knowledge among Indians is very low than
the international standards. But the financial behaviour and attitude of the employees and retired
seems to be positive. The financial knowledge among the women are marginally high than the men.
Greater access to consumption credits has influenced the financial behaviour of young employees.
Financial literacy was examined among wave11 individuals which showed that the financial literacy
is low and fewer than one third of the young adult possess the basic knowledge of interest rates,
inflation and risk Diversification. Financial literacy was strongly related to socio demographic
characteristics and family financial sophistication. Specifically, a college educated male whose
parents had stocks and retirement savings was about 45 percentage points more likely to know about
risk diversification than a female with less than a high school education whose parents were not
wealthy (Lusardi, Mitchell and Curto 2006).
Sages and Grable, (2009) in their study found that the individuals who has the lowest level of
financial risk tolerance is the least competent in terms of financial matters, have the lowest
subjective evaluation of net worth and are less satisfied with their financial management skills. The
level of financial risk tolerance of the individuals determines the financial behaviour.
Ansong and Gyensare (2012) conducted a study among 250 UG and PG University students of
Cape Coast reveals that the age and work experience are positively related to financial literacy.
Also, mother’s education is positively correlated with respondents’ financial literacy. But, level of
study, work location, father’s education, access to media and the source of education on money has
no influence on financial literacy.
Mandell (2008) made a survey among college students in 2008, Mandell calculated average
accuracy rate of the questions on financial literacy by their major. From the result, the average of
all respondents is 61.9%. Although the accuracy rate of Business or Economics major is 62.4% and
is higher than overall average, its rate is lower than Engineering (63.2%), Science (64.0%), and
5
Social Science (64.0%). In addition, Koshal et al. (2008) reported that the difference between Indian
MBA students’ grades does not show a statistically significant effect on economic literacy score.
Tiboh (2015) used logistic regression and ANOVA procedures to examine the level of financial
literacy a sample of 120 Polytechnic students in the Kumasi Metropolis. The results showed that
the participants answered approximately 41% of financial literacy questions correctly. None of the
mean scores for financial literacy categories were above 60%. The results also revealed that many
of the students are familiar with issues relating to simple interest calculations and loan guarantee.
In contrast, the students are less knowledgeable and inexperienced with issues concerning personal
financial planning and budgeting, mutual funds and risk return associated with investment decisions.
On the basis of the findings, the authors concluded that policy makers should include financial
literacy programmes in the academic curriculum.
Lastly, Gyimah et al. (2018) used the survey research method to investigate the financial literacy
level among a sample of 480 students across public and technical universities as well as teacher-
training colleges in Ghana. The findings suggest that on the average, students lack financial
knowledge especially on insurance. On the contrary, the results revealed that students are financially
literate in terms of savings and borrowing. Also, information technology positively influences 95%
of student’s financial literacy. Based on the findings, Gyimah et al. (2018) recommended that policy
makers should redesign the curriculum to include financial literacy courses especially for non-
business students.
6
Chapter - II
Industry and company profile
7
Industry and company profile
Financial literacy is the possession of the set of skills and knowledge that allows an individual to
make informed and effective decisions with all of their financial resources. Raising interest
in personal finance is now a focus of state-run programs in countries including Australia, Canada,
Japan, the United States, and the United Kingdom. Understanding basic financial concepts allows
people to know how to navigate in the financial system. People with appropriate financial literacy
training make better financial decisions and manage money better than those without such training.
The Organization for Economic Co-operation and Development (OECD) started an inter-
governmental project in 2003 with the objective of providing ways to improve financial education
and literacy standards through the development of common financial literacy principles. In March
2008, the OECD launched the International Gateway for Financial Education, which aims to serve
as a clearinghouse for financial education programs, information and research worldwide. In the
UK, the alternative term "financial capability" is used by the state and its agencies: the Financial
Services Authority (FSA) in the UK started a national strategy on financial capability in 2003. The
US government established its Financial Literacy and Education Commission in 2003.
India
National Centre for Financial Education (NCFE), a non-profit company, was created under section
8 of companies act 2013, to promote financial literacy in India. It is promoted by four
major financial regulators Reserve Bank of India, SEBI, IRDA and PFRDA.
NCFE conducted a benchmark survey of financial literacy in 2015 to find the level of financial
awareness in India. It organises various programs to improve the financial literacy including
collaborating with schools and developing new curriculum to include financial management
concepts. It also conducts a yearly financial literacy test. The list of topics covered by NCFE in
its awareness programs includes investments, types of bank accounts, services offered by
banks, Aadhaar card, demat account, pan cards, power of compounding, digital payments,
protection against financial frauds etc.
8
The Hindi words for “capable” (Saksham) and “development” (Unnati), are helping to define
financial inclusion in India. For Indians, developing capability is a call to action. This is why
seminars on financial literacy skills are so effective. Financial literacy can be the difference between
drowning in unregulated debt, often from loan sharks, or breaking free by building through
successful small businesses.
India has made great progress in improving financial inclusion by making loans and other financial
services available to low-income borrowers, through support from the Government of India,
microfinance institutions (MFIs), and NGOs. In 2014 the government launched Pradhan Mantri
Jan-Dhan Yojana, a program aimed at providing a bank account for every household. The program
generated a record 443 million accounts for India’s households since its August 2014 launch through
to early January 2022.
However, closing the banking gap also requires at least a basic understanding of how the financial
system works. Only 27% of Indian adults – and 24% of women – meet the minimum level of
financial literacy as defined by the Reserve Bank of India.
Women are particularly responsive to financial literacy outreach. Traditionally they manage the
household budget and are often eager to start home-based businesses. When armed with
foundational knowledge, financial literacy tools, and small-scale business opportunities, women
entrepreneurs can make a remarkable impact on their families and communities.
Financial literacy is helping Rekha Devi to improve her family’s living conditions and prospects. A
mother of three living in Danapur, Bihar State, in eastern India, her modest household income comes
from her husband’s job as a rickshaw driver. She manages daily household expenses and repayments
for informal loans. More often than not, the family had very little left in the end of the day for
savings. “Whenever we had a major expense, I resorted to taking out loans. The loan repayments
often depleted our daily income.”
Financial literacy training taught Rekha how to start a small savings fund for her family. “I learned
the importance of setting aside a small amount daily and consistently. I started setting aside 5 rupees
every day until I was able to increase this to 20 rupees,” she says.
RBL Bank, one of India’s leading private sector banks, is helping to deliver this life-changing
training. Its Saksham financial literacy training programs, launched in December 2013 in Gujarat,
9
Maharashtra, and Rajasthan provinces, are classroom-based financial literacy courses tailored for
women in lower-income communities.
Designed to cater to a wide range of needs, Saksham utilizes visual aids, stories, role-playing
activities and exercises that resonate with the clients’ lives and experiences. Trainees are taught life
skills alongside financial principles: while they learn how to access banking services and to repay
loans responsibly, they also acquire planning skills, such as how to create investment and savings
plans for their families.
“When you educate a woman, you educate the entire family and ensure the wellbeing of future
generations.”
10
Chapter III
Research Methodology
11
Research Methodology
The Analysis is bases on the region of primary data. A Structured Questionnaire was developed to
capture the financial literacy level of the students in the rural area of Rayalaseema. The
questionnaire used in the survey covers the most important dimensions of financial literacy:
financial knowledge, financial behaviour, and financial attitude. The study attempts to analyse the
financial literacy of the respondents on the basis of the socio demographic variables.
Sampling and data collection
The research was conducted to assess the financial literacy level of the students of Rayalaseema.
From the sampling frame, the study uses a sample of 396 respondents.
Tools used for analysis
Regression
Factor analysis
Descriptive statistics
T test
Objectives of the study
1. To study the financial literacy among students in rural area of Rayalaseema.

2. To identify and analyse the factors impacting the financial literacy among the students in
rural area of Rayalaseema.
3. To provide suggestions to the students for improving financial literacy among students.
12
Importance of the study
1. Financial growth and success is only based on the skill of financial literacy.
2. To avoid the debt and use of credit cards and managing the accounts is only done by the
financial literacy.
3. Financial literacy provides you the basic knowledge of managing money, savings,
buying, investing and insurance.
4. The Financial responsibilities are increasing. So, financial decisions are based on
financial literacy only.
5. A good decision in financial management can change one’s life and can make better life,
financial literacy is very important to everyone.
Statement of problem
1. Clearly to know the financial efficiency of the students in rural area.

2. To know about student’s savings.
3. This may lead to over spending or lack of budget.
4. Financial illiteracy makes lack of income or lack of job.
5. It affects every one: men and women, young and old, across all racial and socioeconomic
lines.
Need of the study
1. Financial literacy is needed to pay off debts.

2. It would be help in creating a budget.
3. Helps to improve the ability to manage personal finances.
4. Protecting their families in the emergencies like covid-19.
5. Gives you expenditure that are essential for you to be able to live & work.
13
Scope of the study
1. Financial literacy is a vast concept. It makes us well known of budgetary, education, banking
tools and understanding economic concepts.
2. Financial literacy is very important requirement for running of modern society in a smooth
way.
3. To remove poverty in the country it is very important to have knowledge on financial
literacy.
4. Having well aware of financial literacy is helpful in banking sector, financial institutions and
other sectors which are related to finance.
5. Low financial literacy makes people to have less knowledge in calculations, low education
and low income.
Limitations
1. Only questionnaire method was used to measure the financial literacy of the students.
2. Opinions of the respondents can differ from time to time based on situations.
14
Figure – 3.1
Frequency Percent Valid Percent Cumulative Percent

Valid 12 - 14 14 3.6 3.6 3.6
15 - 17 32 8.1 8.1 11.7
18 - 20 66 16.8 16.8 28.4
21 - 23 209 53.0 53.0 81.5
other 73 18.5 18.5 100.0
Total 394 100.0 100.0
Table – 3.1
Interpretation
Most of the Respondents are from the 21 – 23 age group. It has 209 respondents which is 53% of
total. Second highest is other group which has 73 respondents and occupies 18.5%. The age group
between 18 – 20 is the third highest respondents having 66 in frequency and 16.8 in percentage. The
age group between 15 – 17 has a frequency of 32 and occupies 8.1%. And the age group between
12 – 14 has the frequency of 14 and 3.6 in percentage.
15
Figure – 3.2

Valid Male 217 55.1 55.1 55.1
Female 177 44.9 44.9 100.0
Total 394 100.0 100.0
Table – 3.2
Interpretation
The gender has total respondents of 394. In that 217 are male persons with the percentage of 55.1.
And female persons are 177 with the percentage of 44.9.
16
Figure – 3.3
Cumulative
Frequency Percent Valid Percent Percent
Valid Secondary 44 11.2 11.2 11.2
Intermediate 58 14.7 14.7 25.9
Under graduate 137 34.8 34.8 60.7
Post graduate 150 38.1 38.1 98.7
p.hd 5 1.3 1.3 100.0
Total 394 100.0 100.0
Table – 3.3
Interpretation
Most of the persons are post graduates the frequency is 150 and the percentage is 38.1. Second
highest frequency is under graduates that is 137 and percentage is 34.8. The intermediate has a
frequency of 58 and the percentage is 14.7. Secondary students frequency is 44 and the percentage
is 11.2. Finally p.hd has a lowest frequency with the percentage of 1.3.
17
Figure – 3.4
Cumulative
Valid Below 2.5 lakhs 232 58.9 58.9 58.9
2.5 to 5.0 lakhs 94 23.9 23.9 82.7
5.0 to 7.5 lakhs 47 11.9 11.9 94.7
7.5 to 10 lakhs 17 4.3 4.3 99.0
Above 10 lakhs 4 1.0 1.0 100.0
Total 394 100.0 100.0
Table – 3.4
Interpretation
This particular Question shows us the income level of the respondents. Most of the response has
came to the 1st option below 2.5 lakhs income per year, 232 responses with the percentage of 58.9.
Then the second option 2.5 to 5.0 lakhs has got second highest responses that is 94 in frequency and
23.9 in percentage. Third option 5.0 to 7.5 lakhs has a frequency of 47 and 11.9 in percentage. 7.5.to
10 lakhs has got a frequency of 17 and in percentage 4.3. Above 10 lakhs have 4 responses with the
percentage of 1.0.
18
Figure – 3.5
Cumulative
Valid Strongly agree 203 51.5 51.5 51.5
Agree 130 33.0 33.0 84.5
Strongly disagree 24 6.1 6.1 90.6
Disagree 13 3.3 3.3 93.9
Neutral 24 6.1 6.1 100.0
Total 394 100.0 100.0
Table – 3.5
Interpretation
The frequency for strongly agree is 203 with the percentage of 51.5. Most of the respondents are
strongly agreed to manage their own finance. The frequency for agree is 130 with the percentage of
33.0. There are 24 respondents who opted for neutral, this shows either they agree or dis agree. And
strongly disagree has frequency of 24 with the percentage of 6.1. In the same way disagree has 13
as frequency and 3.3 as percentage.
19
Figure – 3.6
Cumulative
Valid Strongly agree 216 54.8 54.8 54.8
agree 133 33.8 33.8 88.6
Strongly disagree 16 4.1 4.1 92.6
Disagree 15 3.8 3.8 96.4
Neutral 14 3.6 3.6 100.0
Total 394 100.0 100.0
Table – 3.6
Interpretation
The respondents have interest in increasing their financial knowledge. Strongly agree has 216
frequency with the percentage of 54.8 and agree has 133 frequency with the percentage of 38.8.
And neutral has 14 frequency and 3.6 percentage. And strongly disagree and disagree has 16 and
15 frequency with the percentage of 4.1 and 3.8.
20
Figure - 3.7

Valid Yes 364 92.4 92.4 92.4
No 30 7.6 7.6 100.0
Total 394 100.0 100.0
Table – 3.7
Interpretation
From the 394 responses 364 persons have a bank a/c and the percentage is 92.4. And the 30
respondents have no bank a/c the percentage is 7.6.
21
Figure – 3.8
Cumulative
Valid SBI 193 49.0 49.0 49.0
HDFC 35 8.9 8.9 57.9
Andhra bank 36 9.1 9.1 67.0
ICICi 18 4.6 4.6 71.6
other 112 28.4 28.4 100.0
Total 394 100.0 100.0
Table – 3.8
Interpretation
By knowing the respondent’s interest, we know that SBI and Other has a great frequency of 193 and
112 with the percentage of 49.0 and 28.4. Andhra bank has 36 responses with the percentage of 9.1
and HDFC has frequency of 35 and percentage of 8.9. And ICICI has low frequency of 18 with the
percentage of 4.6. Here the frequency represents persons having bank account in their respective
banks.
22
Figure – 3.9
Cumulative
Valid Savings bank a/c 374 94.9 94.9 94.9
Current A/c 20 5.1 5.1 100.0
Total 394 100.0 100.0
Table – 3.9
Interpretation
From 394 responses 374 are using Savings bank account with the percentage of 94.9. And current
account holders are 20 respondents the percentage is 5.1.
23
Figure – 3.10

Valid Yes 362 91.9 91.9 91.9
No 32 8.1 8.1 100.0
Total 394 100.0 100.0
Table – 3.10
Interpretation
362 respondents out of 394 are satisfied with the bank that they have an account with the percentage
of 91.9. And 32 respondents are not satisfied with their bank that they have an account with the
percentage of 8.1.
24
Figure – 3.11

Valid Yes 356 90.4 90.4 90.4
No 38 9.6 9.6 100.0
Total 394 100.0 100.0
Table – 3.11
Interpretation
From the 394 respondents 356 are aware of deposit forms in banks. The percentage is 90.4. And the
people who are not aware of deposit forms are 38 from the responses with the percentage of 9.6.
25
Figure – 3.12

Valid Yes 327 83.0 83.0 83.0
No 67 17.0 17.0 100.0
Total 394 100.0 100.0
Table – 3.12
Interpretation
From the total responses of 394 most of the persons with the frequency of 327 have used the deposit
forms the percentage is 83. And 67 respondents have not used the deposit forms until now. The
Percentage of respondents who are not used the deposit forms is 17.
26
Figure – 3.13

Valid Yes 331 84.0 84.0 84.0
No 63 16.0 16.0 100.0
Total 394 100.0 100.0
Table – 3.13
Interpretation
Most of the respondents are satisfied by using the deposit forms the frequency is 331 with the
percentage of 84. And the respondents who are not satisfied 63 in frequency with the percent of 16.
27
Figure – 3.14
Cumulative
Valid Yes 350 88.8 88.8 88.8
No 44 11.2 11.2 100.0
Total 394 100.0 100.0
Table – 3.14
Interpretation
From the total responses of 394 most of the respondents are aware of withdraw form. The frequency
of respondents is 350 with the percentage of 88.8. And the respondents who are not aware of
withdraw form frequency is 44 and the percentage is 11.2.
28
Figure – 3.15
Cumulative
Valid Yes 316 80.2 80.2 80.2
No 78 19.8 19.8 100.0
Total 394 100.0 100.0
Table – 3.15
Interpretation
Respondents choose yes with the frequency of 316 and percentage is 80.2. That means the people
who choose yes are used withdraw form for withdrawing money. The respondents who choose no
are not used the withdraw form until now, the frequency is 78 and the percentage is 19.8.
29
Figure – 3.16
Cumulative
Valid Yes 326 82.7 82.7 82.7
No 68 17.3 17.3 100.0
Total 394 100.0 100.0
Figure – 3.16
Interpretation
326 respondents from 394 are satisfied by using withdraw form in their bank. The percentage is
82.7. The respondents who opted for no is not satisfied by using the withdraw form in their bank.
The percentage who are not satisfied is 17.3.
30
Figure – 3.17
Cumulative
Valid Online banking 95 24.1 24.1 24.1
Mobile banking 66 16.8 16.8 40.9
ATM 164 41.6 41.6 82.5
Credit card 6 1.5 1.5 84.0
Other 63 16.0 16.0 100.0
Total 394 100.0 100.0
Table – 3.17
Interpretation
Most of the respondents opted for ATM with the frequency of 164 and the percentage is 41.6. The
respondents choose online banking as a second service they get from the bank. The frequency is 96
with the percent of 24.1. Mobile banking has got the frequency of 66 and the percentage of 16.8.
The respondents choose other services from the bank they get with the frequency of 63 and the
percentage of 16. Credit card service was opted by the 6 respondents with the percentage of 1.5.
31
Figure - 3.18

Valid Yes 349 88.6 88.6 88.6
No 45 11.4 11.4 100.0
Total 394 100.0 100.0
Table – 3.18
Interpretation
From the responses most of the respondents are using online banking. Frequency is 349 with the
percent of 88.6. And the respondents who are not using the online banking frequency is 45 and
percentage is 11.4.
32
Figure – 3.19

Valid Yes 357 90.6 90.6 90.6
No 37 9.4 9.4 100.0
Total 394 100.0 100.0
Table – 3.19
Interpretation
357 respondents agree that online banking is helpful. The percentage who agreed for online banking
is 90.6. The respondents of 37 are not agreed for online banking is helpful with the percent of 9.4.
33
Figure – 3.20
Cumulative
Valid Yes 275 69.8 70.0 70.0
No 118 29.9 30.0 100.0
Total 393 99.7 100.0
Missing System 1 .3
Total 394 100.0
Table – 3.20
Interpretation
Most of the respondents agreed that there are security issues with net banking. The frequency of the
respondents is 275 and the percentage is 69.8. The other 118 respondents are saying that there are
no security issues with net banking the percentage who belives there are no security issues with net
banking is 29.9.
34
Figure – 3.21

Valid Yes 312 79.2 79.2 79.2
No 82 20.8 20.8 100.0
Total 394 100.0 100.0
Table – 3.21
Interpretation
Nearly 80 percentage of respondents are agreed that they are aware of various banking or financial
frauds and scams here the frequency of the respondents is 312. And there are 82 respondents who
are not aware of the financial frauds and scams.
35
Figure – 3.22
Cumulative
Valid Fixed deposits 227 57.6 57.6 57.6
Mutual funds 93 23.6 23.6 81.2
Derivatives trading 8 2.0 2.0 83.2
Shares trading 21 5.3 5.3 88.6
Other 45 11.4 11.4 100.0
Total 394 100.0 100.0
Table – 3.22
Interpretation
We know that most of the respondents completed their education in under graduation and post-
graduation. So, the respondents are ready to invest in the fixed deposits highly, the frequency is 227
with the percentage of 57.6. 93 respondents are ready to invest in mutual funds, the frequency is 93
with the percentage of 23.6. 45 respondents choose other for investment the percentage is 11.4.
Shares trading has 21frequency with the percentage of 5.3. And derivatives trading has got
frequency of 8 with the percentage of 2. We can say that most of the respondents has no idea on
mutual funds, share, and derivatives market.
36
Figure – 3.23

Valid Yes 321 81.5 81.5 81.5
No 73 18.5 18.5 100.0
Total 394 100.0 100.0
Table – 3.23
Interpretation
With the total of 394 frequency, 321 respondents are KYC approved customers. The other 73
respondents are not KYC approved customers. This is a banking related term where every customer
needs to complete KYC compulsory. But some of the respondents are not aware of the KYC in their
banks.
37
Figure – 3.24
Cumulative
Valid Home 72 18.3 18.3 18.3
Education 39 9.9 9.9 28.2
Car 15 3.8 3.8 32.0
Business 11 2.8 2.8 34.8
All of the above 257 65.2 65.2 100.0
Total 394 100.0 100.0
Table – 3.24
Interpretation
In this particular question we can say that there are many of the respondents are not aware of the
loans. Because if we see the results, out of 394 respondents 257 has an idea regarding the loans. The
percentage of this is 65.2. Other respondents with the frequency is 131 are not aware of the loans
because they choose separate loan products in the question. Their percentage is 34.8.
38
Figure – 3.25
Cumulative
Valid RBI 326 82.7 82.7 82.7
NABARD 13 3.3 3.3 86.0
Public sector banks 22 5.6 5.6 91.6
State government 12 3.0 3.0 94.7
Central government 21 5.3 5.3 100.0
Total 394 100.0 100.0
Table – 3.25
Interpretation
By seeing the results we can say that most of the respondents are fully aware of currency notes who
issues the currency notes. 326 respondents are choose RBI which is correct answer for the question.
The percentage of the respondents is 82.7. The other respondents with the count of 67 are not aware
who issues the currency notes, the percentage of this count is 17.3.
39
Figure – 3.26
Cumulative
Valid Rs. 50 72 18.3 18.3 18.3
Rs. 100 40 10.2 10.2 28.4
Rs. 500 26 6.6 6.6 35.0
Rs. 2000 36 9.1 9.1 44.2
All of the above 220 55.8 55.8 100.0
Total 394 100.0 100.0
Table – 3.26
Interpretation
In this question only the 55.8 percentage of the respondents are aware that all currency notes have
security threads. If we see the frequency only 220 are aware. The other respondents are not aware
of that all currency notes has security threads, the frequency is different in different notes if we add
it becomes 174 as frequency and 44.2 as the percentage.
40
Figure – 3.27
Cumulative
Valid Issued by bank 105 26.6 26.6 26.6
Contains transactions 12 3.0 3.0 29.7
details of bank
Show balance in account 33 8.4 8.4 38.1

None of the above 24 6.1 6.1 44.2
All of the above 220 55.8 55.8 100.0
Total 394 100.0 100.0
Table – 3.27
Interpretation
In this question only the 55.8 percentage of the respondents are aware that all points are related to
the bank. If we see the frequency only 220 are aware. The other respondents are not aware of those
are related to the banking functions, the frequency is different in different options if we add it
becomes 150 as frequency and 38.1 as the percentage. And there are respondents who thinks none
of the above is correct answer for the question, the frequency is 24 and percentage is 6.1.
41
Figure – 3.28
Cumulative
Valid Operations of account 78 19.8 19.9 19.9
through internet
Opening of account 25 6.3 6.4 26.3
through internet
Means mobile banking 43 10.9 11.0 37.2
and tele banking
None of the above 28 7.1 7.1 44.4
All of the above 218 55.3 55.6 100.0
Total 392 99.5 100.0
Missing System 2 .5
Total 394 100.0
Table – 3.28
Interpretation
Internet banking refers to all the points mentioned in the question above fourth option. But here the
respondents with the frequency of 218 are aware that they are related to the internet banking, the
percentage is 55.3. The other respondents are not aware that the points are related to the internet
banking the frequency is 146 who thinks they are different. And there are other respondents with
the frequency of 28 and the percentage is 7.1 who thinks none of the above is the correct answer for
the question.
42
Figure – 3.29
Cumulative
Valid Indian citizen 96 24.4 24.4 24.4
Non-resident Indian 27 6.9 6.9 31.2
Illiterate 9 2.3 2.3 33.5
Literate 14 3.6 3.6 37.1
All of the above 248 62.9 62.9 100.0
Total 394 100.0 100.0
Table – 3.29
Interpretation
The respondents with the percentage of 62.9 has an idea who can open a bank account. The
frequency is 248. The other respondents responded for the Indian citizen who can open a bank
account, the frequency is 96 and percentage is 24.4. The other 50 respondents are not aware who
can open a bank account.
43
Figure – 3.30
Cumulative
Valid Current 60 15.2 15.2 15.2
Savings 105 26.6 26.6 41.9
Fixed 197 50.0 50.0 91.9
Recuring 32 8.1 8.1 100.0
Total 394 100.0 100.0
Table – 3.30
Interpretation
Most of the respondents are opted for the fixed deposit option, with the frequency of 197 the
percentage is 50. The other respondents have choose their option as savings account with the
frequency of 105 and percentage is 26.6. For recuring 32 and for current account 60 respondents are
not fully aware of which account earns higher returns.
44
Figure – 3.31

Valid Yes 296 75.1 75.1 75.1
No 98 24.9 24.9 100.0
Total 394 100.0 100.0
Table – 3.31
Interpretation
Nearly 75 percentage of respondents are known about the digital rupee with the frequency of 296.
And the other respondents are not aware of the digital rupee the frequency is 98 and percentage is
24.9.
45
Figure – 3.32
Cumulative
Valid Cash 131 33.2 33.2 33.2
Cheque 37 9.4 9.4 42.6
Digital mode 31 7.9 7.9 50.5
Cash and Digital mode 195 49.5 49.5 100.0
Total 394 100.0 100.0
Table – 3.32
Interpretation
Here we can know that 50 percentage of the respondents receive money as cash and digital mode,
the frequency is 195. And 131 respondents are receiving money for their expenses in cash only, the
percentage is 33.2. Through cheque and digital mode there are 68 respondents are receiving money
for their expenses and their percentage is 17.3.
46
Figure – 3.33
Cumulative
Valid Sending money 85 21.6 21.6 21.6
Bill payment 32 8.1 8.1 29.7
Shopping 21 5.3 5.3 35.0
Booking tickets 5 1.3 1.3 36.3
Above all 251 63.7 63.7 100.0
Total 394 100.0 100.0
Table – 3.33
Interpretation
If we see the responses most of the respondents are using digital transaction for all the purposes.
Their frequency is 251 for above all. And in that mainly sending money is a major purpose for using
digital transaction. Frequency is 85 and percentage is 21.6. So, all are using digital transactions for
many reasons.
47
Figure – 3.34
Cumulative
Valid Net banking 81 20.6 20.6 20.6
Mobile banking 75 19.0 19.0 39.6
BHIM or UPI 184 46.7 46.7 86.3
Prepaid cards and mobile 17 4.3 4.3 90.6

wallets
Other 37 9.4 9.4 100.0
Total 394 100.0 100.0
Table – 3.34
Interpretation
In this question we came to know that most of the respondents are using BHIM or UPI as first
option, Net banking as second option and mobile banking as third option with the frequency of 184,
81, 75 of each with the percentage of 46.7, 20.6, 19. And the other respondents have responded for
prepaid cards and mobile wallets and other with the frequency of 54 and percentage 13.7 for both.
48
Figure – 3.35
Cumulative
Valid Yes 281 71.3 71.5 71.5
No 112 28.4 28.5 100.0
Total 393 99.7 100.0
Missing System 1 .3
Total 394 100.0
Table – 3.35
Interpretation
281 respondents are responded for yes with the percentage of 71.5 as they change pin regularly.
And 112 respondents are not changing their pin and passwords regularly, their percentage is 28.4.
49
Figure – 3.36
Cumulative
Valid Never 159 40.4 40.4 40.4
Rarely 77 19.5 19.5 59.9
Sometimes 115 29.2 29.2 89.1
Usually 23 5.8 5.8 94.9
Always 20 5.1 5.1 100.0
Total 394 100.0 100.0
Table – 3.36
Interpretation
The respondents mainly preferred the first option that is never, the frequency of this is 159 and the
percentage is 40.4. And also 115 Respondents have an intention that sometimes they will prepare a
budget for a month. The 20 percentage of people mentioned rarely, frequency is 77. And 5 percent
of respondents are with the frequency 20 they said they will prepare always a budget for the month.
Same respondents for the option usually.
50
Figure – 3.37
Cumulative
Valid Never 140 35.5 35.5 35.5
Rarely 90 22.8 22.8 58.4
Sometimes 116 29.4 29.4 87.8
Usually 23 5.8 5.8 93.7
Always 25 6.3 6.3 100.0
Total 394 100.0 100.0
Table – 3.37
Interpretation
Most of the respondents has not interested in spending money according to their goals, the frequency
is 140, in percentage 35.5. The respondents with the frequency of 116 and percentage 29.4 are saying
that they will spend according to the goals and they will discuss it with their family sometimes. And
6 percent of the respondents are saying that they will spend money according to their goals and
discuss it with their family always.
51
Figure – 3.38
Cumulative
Valid Never 148 37.6 37.6 37.6
Rarely 74 18.8 18.8 56.3
Sometimes 128 32.5 32.5 88.8
Usually 25 6.3 6.3 95.2
Always 19 4.8 4.8 100.0
Total 394 100.0 100.0
Table – 3.38
Interpretation
Majority of the respondents are not aware of their regular expenses because they are not tracking
their expenses on a regular basis. The Frequency is 148 and the percentage is 37.6. The other
respondents are responded for the option sometimes with the frequency of 128 and percentage 32.5.
There are 74 respondents who choose rarely, the percentage is 18.8. 19 respondents are fully aware
of tracking their expenses on a regular basis. Their percentage is very low i.e 4.8. Some of the
respondents usually do the tracking of their expenses.
52
Figure – 3.39
Cumulative
Valid Never 114 28.9 28.9 28.9
Rarely 62 15.7 15.7 44.7
Sometimes 140 35.5 35.5 80.2
Usually 33 8.4 8.4 88.6
Always 45 11.4 11.4 100.0
Total 394 100.0 100.0
Table – 3.39
Interpretation
We can say that 45 respondents are fully aware of their savings and future goals. 140 respondents
are saying they will save for future at sometimes. 114 respondents are not at all aware of their
savings and future expenses. 62 respondents are saying rarely they will do savings and for future
expenses.
53
Chapter IV
Data Analysis and Interpretation
54
Regression
Model Summary
Std. Error Change Statistics
Mode R Adjusted R of the R Square F Sig. F
b
l R Square Square Estimate Change Change df1 df2 Change
a
1 .935 .875 .872 1.143 .875 335.701 8 384 .000
a. Predictors: 35. Pref mode digital payment, 6. Manage finance, 23. Prefer for Invest, 32. DIgital
Rupee, 29. Intrnt Banking ref, 24. KYC app cust, 19. Using Online banking, 8. Bank ac
b. For regression through the origin (the no-intercept model), R Square measures the proportion of
the variability in the dependent variable about the origin explained by regression. This CANNOT be
compared to R Square for models which include an intercept.
Table – 4.1
Interpretation
There is a significant relationship between the education (Dependent Variable), & Manage finance
(IV1), Bank Ac (IV2), Usage of online banking (IV3), KYC approved customer (IV4), Internet
Banking Refers (IV5), Digital Rupee (IV6), Prefer for investment (IV7), Digital payment (IV8),
with the significance value .000. Which is less then 0.05. The following values are beta coefficient
values and significance values of each independent variables. Manage finance (-.032) (.418), Bank
Account (.413) (.000), Using online banking (.230) (.001), Preference for investment (.080) (.017),
KYC approved customer (-.055) (.402), Internet banking refers (.325) (.000), Digital rupee (.010)
(.866), Preference mode of digital payment (.003) (.953).
The R square value is = .875, which means the independent variables explains variance about 97%
on dependent variable (Education).
55
ANOVA
Model Sum of Squares df Mean Square F Sig.

1 Regression 3507.485 8 438.436 335.701 .000c
Residual 501.515 384 1.306
d
Total 4009.000 392
a. Dependent Variable: 4. Education
b. Linear Regression through the Origin
c. Predictors: 35. Pref mode digital payment, 6. Manage finance, 23. Prefer for Invest, 32. DIgital
Rupee, 29. Intrnt Banking ref, 24. KYC app cust, 19. Using Online banking, 8. Bank ac
d. This total sum of squares is not corrected for the constant because the constant is zero for
regression through the origin.
Table – 4.2
Coefficients
Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 6. Manage finance -.048 .059 -.032 -.811 .418
8. Bank ac 1.190 .206 .413 5.770 .000
19. Using Online .637 .187 .230 3.399 .001
banking
23. Prefer for Invest .111 .046 .080 2.393 .017
24. KYC app cust -.141 .168 -.055 -.840 .402
29. Intrnt Banking ref .256 .040 .325 6.419 .000
32. DIgital Rupee .024 .141 .010 .168 .866
35.Pref mode digital .004 .063 .003 .059 .953
payment
a. Dependent Variable: 4. Education
b. Linear Regression through the Origin
Table – 4.3
56
Interpretation
For managing own finance sig. value is .418 and beta value is -.032 which means managing finance
is not depended on the education.
Bank Account sig. value is .000 which means education is needed. But if we see the beta value .413
which means, to do bank account education is important.
Using online banking sig. value is .001 which is perfect match for the dependent variable. The beta
value is .230 it shoes the education is also needed for the using of online banking.
Prefer for investment sig value is .017 and the beta value is .080 which means education is most
important for the investment.
KYC approved customer sig. value is .402 and beta value is -.055 this is the negative. It means for
kyc approval education is not required.
Internet banking sig. value is .000 which is perfect match for dependent variable. The beta value is
.325 it means the education is required for the internet banking.
Digital rupee and education is not related. We can say this by seeing the results, the sig. value is
.866 and beta value is .010.
Preference mode of digital payment is also not related to the education. Now most of the people are
using Digital payments by using BHIM or UPI related applications.
57
Factor analysis
KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .659
Bartlett's Test of Sphericity Approx. Chi-Square 416.232
Df 28
Sig. .000
Table – 4.4
Interpretation
As we see the above table, the significant value is .000, which is considered. And kaiser-Meyer-
Olkin measures of sampling adequacy is .659. kaiser-Meyer-Olkin value is close to the 0.05, which
is acceptable and approximate value of chi square is 416.232.
Descriptive Statistics
Mean Std. Deviation Analysis N
4. Education 3.03 1.015 392
12. Aware dep form 1.10 .296 392
15. Aware witdl form 1.11 .316 392
19. Using Online banking 1.11 .316 392
23. Prefer for Invest 1.88 1.343 392
24. KYC app cust 1.18 .388 392
29. Intrnt Banking ref 3.72 1.625 392
32. DIgital Rupee 1.25 .432 392
Table – 4.5
Interpretation
A standard deviation is a measure of how dispersed the data is in relation to the mean. Low standard
deviation means data are clustered around the mean, and high standard deviation indicates data are
more spread out. A standard deviation close to zero indicates that points are close to the mean.
58
Total Variance Explained
Extraction Sums of Squared Rotation Sums of Squared
Initial Eigenvalues Loadings Loadings
Compon % of Cumulati % of Cumulati % of Cumulati
ent Total Variance ve % Total Variance ve % Total Variance ve %
1 2.246 28.081 28.081 2.246 28.081 28.081 1.832 22.896 22.896
2 1.350 16.873 44.954 1.350 16.873 44.954 1.697 21.208 44.105
3 1.223 15.289 60.243 1.223 15.289 60.243 1.291 16.139 60.243
4 .785 9.808 70.051
5 .741 9.261 79.312
6 .678 8.475 87.788
7 .559 6.987 94.775
8 .418 5.225 100.000
Extraction Method: Principal Component Analysis.
Table – 4.6
Figure – 4.1
59
Interpretation
A screen plot shows the eigen values on the Y axix and the number of factors on the X axis. Screen
plot is always shows downward curve. The point where the slope of the curve is clearly levelling
off (the ‘elbow’) indicates the number of factors that should be generated by the analysis.
T – test
One-Sample Test
Test Value = 0.05
95% Confidence Interval of
Sig. (2- Mean the Difference
t Df tailed) Difference Lower Upper
6. Manage finance 31.385 393 .000 1.744 1.64 1.85
8. Bank ac 76.699 393 .000 1.026 1.00 1.05
19. Using Online 66.329 393 .000 1.064 1.03 1.10
banking
23. Prefer for Invest 27.042 393 .000 1.843 1.71 1.98
24. KYC app cust 57.927 393 .000 1.135 1.10 1.17
32. DIgital Rupee 54.974 393 .000 1.199 1.16 1.24
35.Pref mode digital 44.950 393 .000 2.579 2.47 2.69
payment
Table – 4.7
The one sample statistics table displays the N, Mean, Standard deviation, Standard Error Mean for
each of the seven samples. The sample means disperse around the 0.05mm standard by what appears
to be a small amount of variation. The one sample t test table shows that there is a significance
difference between the Manage finance, Bank A\c, Online banking, Prefer for investment, KYC,
Digital rupee, Digital Payment. The samples with significant (2-tailed) value is less than 0.05 and t
statistics value is 31.385, 76.699, 66.329, 27.042, 57.927, 54.974, 44.950. Hence the null hypothesis
is rejected, and the alternative hypothesis is accepted.
60
Chapter V
Findings, Suggestions, Conclusion
61
Findings
➢ The Majority of the respondents were male 217 (55.1%), and rest of them 177 (44.9%) were
female respondents.
➢ Analysis for the financial literacy among students has been done through the regression
analysis, Factor analysis and descriptive statistics.
➢ Respondents answered some of the questions which shows their financial literacy is good.
➢ It is found out that Majority of the people are ready to increase their financial literacy. That
is because some of the respondents are not aware of Savings, Future expenses and budget
preparation for the month. Thus there is need a financial education.
➢ It is found out that it is an positive information that most of the respondents are well aware
of the banking aspects like bank account, deposit form, withdraw form and online banking.
➢ Most of the students are from the educational background of under graduation and post-
graduation.
➢ Most of the students prefers mutual funds and fixed deposits as their investment. Here we
know that mutual funds is an popular financial product, students are aware regarding the
mutual funds.
➢ Most of the students are well aware of the digital banking through BHIM or UPI
applications.
➢ Majority of the students has an idea about loans and currency notes.
➢ The 203 respondents are strongly agreed that they can manage their own finances, and 130
respondents agreed they can manage their own finances.
➢ The factor which impacts the financial literacy among the students is Education.
➢ The independent variables like preference for investment, Using online banking, Internet
banking are fully depended on the depended variable Education.
62
Suggestions
1. Schools and colleges can begin diverse packages related to managing private finances and
need to be made obligatory for all disciplines. These packages must offer realistic
experience, selling involvement as well as transfer of know-how regarding numerous
authorities rules, and so forth and financial control talents to college students.
2. Courses in handling private budget can be supplied to college students in campus. These
should be made obligatory for all disciplines. These publications should provide sensible
enjoy, promoting involvement in addition to switch of knowledge and monetary control
capabilities to college students.
3. Students can be influenced and motivated to use free online learning portals on various apps
and websites, like on Swayam, etc.
4. Parents are the primary and predominant teachers and can have an impact on the behaviour
of kids with the aid of developing nice financial attitude and making recognise
approximately the activities like saving conduct, planning, budgeting, idea of threat, return,
consumer recognition etc.
5. The Reserve financial institution of India (the important financial institution), has been
actively participating in this area for eradicating monetary literacy inside the United States
and has already released a task known as “Project economic literacy” the principal objective
of this undertaking is to disseminate records concerning the principal bank and trendy
banking principles.
63
Suggestions for the rural area students.
1. The Panchayat is the political system in the pastoral parts of the country. To begin with,
initiatives need to be taken by these supreme authority and ultimate decision-making bodies to
providing thrust to spreading financial knowledge at the vestigial level. They can either
themselves conduct sessions (by first themselves acquiring the necessary training), else can help
organise such sessions by trained professionals, whatever is more suitable keeping in mind the
feasibility and sustainability. This is to warrant trickle down of availability of information right
till the grass root level so as to empower people and make them financially capable.
2. The presentations need to be such that they teach all the required concepts through relatable
real life stories. For instance, a story around a financially literate farmer can be created. Both
positive and negative impacts arising out of his decisions should be highlighted showing how
he was better off in terms of living standards, productivity at work, etc. Such efforts would help
an individual to resonate with the concepts. Moreover, a two-way interactive session is always
more fruitful than just a monologue or an address. Efforts should be made to promote the same.
3. Various forms of entertainment and recreational media can be used to promote financial
literacy. Puppet shows are one example that can prove to be effective in ensuring learning.
Informative movies or documentaries can be made focusing on the importance of elementary
financial tools and their application. The movie ‘One Idiot’ was a well-appreciated initiative
taken by the Infrastructure Development Finance Co. Ltd. in this regard.
4. More of similar initiatives need to be emboldened. Financial Literacy Roadshows such as the
one organised by VISA can be initiated in India as well. These are engrossing and at the same
time cogent in achieving the desired objective. One very popular medium in India, which can
be used more frequently for this purpose, is ‘Nukkad Nataks’(street plays).
5. The type of products introduced to the villagers are also of extended concern. These should be
in line with their requirements. To begin with, unnecessary complex products may be of no
good. Plain vanilla products, which are simple, easy to understand and guaranteed by the
64
government to have no underlying hidden clauses can be, tailor made to suit the demand and
requirements of the villagers.
6. One of the major factors ensuring success of these programmes is the participation rate. To
encourage higher attendance, it is important to provide incentives to people .The level of
poverty in India is so acute that people can’t even afford three meals a day and often go to bed
with an empty stomach. Some don’t have permanent employment and sit idle for a substantial
part of the year. Schemes focusing on free provision of nutritious food or providing training to
enhance the skill set which can help in procuring employment can be taken up to foster
participation.
Also, since India is majorly an agrarian economy, most of the rural dwellers earn their
livelihood from agriculture and erratic allied activities. Incentives, which assist in improving
productivity, can play a great role in pulling audiences to these sessions.
65
Conclusion
This study is directed to impart the conclusions about the levels of financial literacy among the
college students of Rayalaseema.
The students of rural area of rayalaseema gave their responses through the questionnaire this was
studied and analysed, their financial knowledge on different financial aspects like bank, currency
notes, own finance managing skills and mainly about the investments. Most of the students are
aware about all the aspects.
The factor which impacts the student’s financial knowledge is education. Education has a great
impact on the financial knowledge of the students. And some suggestions were provided to the
students to improve their financial knowledge.
While it is critical to start showing monetary abilities at school level, accomplishing and keeping up
with monetary skill is a deep-rooted endeavour. The kinds of monetary choices that individuals need
to make fluctuate through the course of their lives, and consequently an endeavour has been made
by the trust to guarantee that admittance to monetary instruction is promptly accessible at all phases
of life. In addition, important, exact, and dependable monetary data should be promptly accessible
to buyers at the time they are settling on their choices. Through monetary training, the trust is
attempting to furnish understudies with the information and abilities they need to settle on better
decisions about funds and defending people against destructive practices and terrible data that lead
to poor monetary decisions. Achieving these two objectives we accept will bring about financial
strengthening for all concerned.
So there ought to be legitimate spotlight on plan of specific projects as expressed in ideas and
suggestions of this review to have a more noteworthy effect to build the monetary proficiency
among Indian young people. As they are the spines to this economy, as India being a youthful
country and there is long approach and ventures and monetary instruments are straightforwardly
influencing the development of the economy.
66
References
WWW.ECONSTOR.EU
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http://www.jumpstartcoalition.com/
https://www.oecd.org/daf/fin/financial-education/2015_OECD_INFE_Toolk
http;//financiallit.org/about/background.aspx
http://jnanajyothiflcc.com/Form/contactUs.aspx?linkId=35
http;//www.oecd.org/finance/financial -education/37742200.pdf
http;//en.wikipedia.org/wiki/Financial literacy
http;//articles.economictimes.indiatimes.com/2012-07
https://www.researchgate.net/publication/337184831
• Central Council for Financial Services Information
(Secretariat: Public Relations Department, Bank of Japan)
• Journal of Psychology in Africa, 2019
Vol. 29, No. 5, 460–465, https://doi.org/10.1080/14330237.2019.1667151
© 2019 Africa Scholarship Development Enterprise
• Journal of Emerging Issues in Economics, Finance and Banking (JEIEFB)

An Online International Research Journal (ISSN: 2306-367X)
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http://www.ncfeindia.org/national-survey. Accessed on January 4, 2017.
• Chakrabarty, K. C. (2013). The what, why, who and how of financial literacy. Retrieved
from RBI
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• S&P survey: More than 70% Indians fare badly in financial literacy. (2014). Retrieved from
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http://www.livemint.com/Money/2l9bZsVo7eempRU9yLvPAL/SP-survey-More-than-70-
Indians-fare-
badly-in-financial-li.html on September 1, 2016.
• International Journal of Economic Research
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„ Serials Publications Pvt. Ltd.
Volume 14 • Number 16 (Part 3) • 2017
• Skill Development: The Key to Economic Prosperity”. Tactful Management Research
Journal. ISSN: 2319-7943.
• ISSN 2348–0661 Print
© 2015 Symbiosis Centre for Management Studies, Pune
Annual Research Journal of Symbiosis Centre for Management Studies, Pune
Vol. 3, April 2015, pp. 1–25
• icle in Asian Journal of Accounting Perspectives · December 2017
DOI: 10.22452/AJAP.vol10no1.4
68
A STUDY ON FINANCIAL LITERACY AMONG STUDENTS IN
RURAL AREA OF RAYALASEEMA. (Questionnaire)
1. Name ……………………. (optional)
2. What is your age?

A. 12 – 14
B. 15 – 17
C. 18 – 20
D. 21 – 23
E. others
3. What is your gender?

A. Male
B. Female
4. What is your educational qualification?

A. Secondary
B. Intermediate
C. Under graduate
D. Post graduate
E. P.hd
5. What is your income per year?

A. Below 2.5 lakhs
B. 2.5 to 5.0 lakhs
C. 5 to 7.5 lakhs
D. 7.5 to 10 lakhs
E. Above 10 lakhs
6. Do you agree that you have the ability to manage your own finance?
A. Strongly agree
B. Agree
C. Strongly dis agree
D. Dis agree
E. Neutral
7. Are you interested in increasing your financial knowledge?

A. Strongly agree
B. Agree
C. Strongly disagree
D. Disagree
E. Neutral
69
8. Do you have a bank account?
A. Yes
B. No
9. In which bank do you have an account?

A. SBI
B. HDFC
C. Andhra bank
D. ICICI
E. Others
10. Which type of account do you have in your bank?

A. Savings bank ac
B. Current ac
11. Are you satisfied with the bank that you have account with?
A. Yes
B. No
12. Are you aware of deposit form in your bank?

A. Yes
B. No
13. Have you used deposit form until now?

A. Yes
B. No
14. Are you satisfied by using deposit forms?

A. Yes
B. No
15. Are you aware of withdrawal form in your bank?

A. Yes
B. No
16. Have you used withdrawal form before the days?

A. Yes
B. No
17. Are you satisfied by using withdrawal forms?

A. Yes
B. No
18. What services do you get from the bank?

A. Online banking
B. Mobile banking
C. ATM
70
D. Credit card
E. Others
19. Are you using online banking?

A. Yes
B. No
20. Do you think online banking is helpful for you?

A. Yes
B. No
21. Do you think there are any security issues with net banking?
A. Yes
B. No
22. Are you aware about various banking/financial frauds and scams?
A. Yes
B. No
23. What do you prefer for investment?

A. Fixed deposits
B. Mutual funds
C. Derivatives trading
D. Shares trading
E. Others
24. Are you a KYC Approved customer?

A. Yes
B. No
25. Bank provides loans for?

A. Home
B. Education
C. Car
D. Business
E. All of the above
26. Currency notes are issued by

A. RBI
B. NABARD
C. Public sector banks
D. State government
E. Central government
71
27. Which currency note has security thread?
A. Rs. 50
B. Rs. 100
C. Rs. 500
D. Rs. 2000
E. All of the above
28. Bank pass book is

A. Issued by bank
B. Contain transaction details of bank
C. Shows balance in account
D. All of the above
E. None of the above
29. Internet banking refers to

A. Operation if account through internet
B. Opening of account through ATM
C. Means mobile banking and tele banking
D. All of the above
30. Who can open a bank account?

A. Indian citizen
B. Non resident Indian
C. Illiterate
D. Literate
E. All of the above
31. Which type of deposits earns higher interest rates?

A. Current
B. Savings
C. Fixed
D. Recuring
32. Do you know about digital rupee?

A. Yes
B. No
33. How do you generally receive the money for regular expenses?
A. Cash
B. Cheque
C. Digital mode
D. Cash and digital mode
72
34. Purpose of digital transactions done by you?
A. Sending money
B. Bill payment
C. Shopping
D. Booking tickets
E. Above all
35. Preferred mode of digital payment?

A. Net banking
B. Mobile banking
C. BHIM or UPI
D. Prepaid cards and mobile wallets
E. Other
36. Do you often change pin/OTP for card, bank account etc.
A. Yes
B. No
37. Will you prepare a budget every month?

A. Never
B. Rarely
C. Sometimes
D. Usually
E. Always
38. Will you spend money according to your goals and would you discuss it with your family?
A. Never
B. Rarely
C. Sometimes
D. Usually
E. Always
39. I keep track of my expenses on a regular basis?

A. Never
B. Rarely
C. Sometimes
D. Usually
E. Always
40. I put money aside for savings, future purchases or emergencies?

A. Never
B. Rarely
C. Sometimes
D. Usually
E. Always
73
MADANAPALLE INSTITUTE OF TECHNOLOGY & SCIENCE
An Autonomous Institution
(Approved by AICTE, New Delhi &Affiliated to JNTUA, Anantapuram)
Department of Management studies
PROGRAMME OUTCOMES (POs)
At the end of the programme, graduate will be able to
PO Statement
PO1: Apply knowledge of management theories and practices to solve business

problems.
PO2: Foster Analytical and critical thinking abilities for data-based decision
making.
PO3: Ability to develop Value based Leadership ability.
PO4: Ability to understand, analyze and communicate global, economic, legal,

and ethical aspects of business.
PO5: Ability to lead themselves and others in the achievement of organizational

goals, contributing effectively to a team environment.
PO6: Apply statistical tools and techniques for better decision making in
managing an organization.
PO7: Possess the skills required to integrate concepts from various disciplines to
identify and develop business strategies.
PO 8: Ability to engage in independent and life-long learning in the broadest

context.
74
Contribution of Project work towards attainment of POs
A Study on financial literacy among students in rural area of rayalaseema
PO1: Theory of Financial Literacy is applied to understand the Financial literacy among 3
students and can solve the problems appropriately.
PO2: Financial literacy of students was analyzed through different factors and provides 3
to take decisions critically towards for the benefit of their life in the future.
PO4: Ability to understand the finance, analyze the situations and communicate widely, 3
in economic, legal, and ethical aspects in the business as well as in the life.
PO6: The project applied Multiple Linear Regression, descriptive Statistics, Factor 3
analysis and t test as statistical tools for better understanding of students perceptions in
the financial literacy.
PO7: The students can possess the skills through the analysis of financial literacy of 3
students from different places of Rayalaseema and helps them to develop financial
strategy in their life in future.
PO8: The knowledge on finances of students helps ability to engage in independent 2

decisions and would be life-long learning in their future.
1 – Slightly; 2 – Moderately; 3 - Strongly
V. Naresh Project Guide

Roll no: 20691E00A7 Dr. Shahrukh Saleem
Assistant Professor
Department of management studies
75

Naresh Major Project A7

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A Study on

Financial Literacy Among Students in Rural Area of Rayalaseema

A Project Report Submitted to

Under the Guidance and Supervision of

DEPARTMENT OF MANAGEMENT STUDIES

AMONG STUDENTS IN RURAL AREA OF RAYALASEEMA” submitted by V NARESH

(Reg.No.20691E00A7) under the guidance of Dr. SHAHRUKH SALEEM, ASST. PROFESSOR,

Department of Management studies for the award of Master of Business Administration to

Jawaharlal Nehru Technological University Anantapur, Anantapuramu, is a record of

Dr. SHAHRUKH SALEEM Dr. SREMMANT BASU

INTERNAL EXAMINER EXTERNAL EXAMINER

STUDENTS IN RURAL AREA OF RAYALASEEMA” is a bonafide work submitted to

supervision of DR. SHAHRUKH SALEEM, Assistant Professor, Department of Management Studies,

Chapter No. Title Page No.

LIST OF TABLES vi - vii

LIST OF GRAPHS viii - ix

2. INDUSTRY AND COMPANY PROFILE 7 – 10

4. DATA ANALYSIS AND INTERPRETATION 54 – 60

5. FINDINGS, SUGGESTIONS & CONCLUSION 61 - 66

Industry and company profile

Sampling and data collection

Tools used for analysis

Objectives of the study

1. To study the financial literacy among students in rural area of Rayalaseema.

1. Clearly to know the financial efficiency of the students in rural area.

Need of the study

1. Financial literacy is needed to pay off debts.

Frequency Percent Valid Percent Cumulative Percent

Frequency Percent Valid Percent Cumulative Percent

Female 177 44.9 44.9 100.0

Total 394 100.0 100.0

Strongly disagree 16 4.1 4.1 92.6

Disagree 15 3.8 3.8 96.4

Neutral 14 3.6 3.6 100.0

Total 394 100.0 100.0

Frequency Percent Valid Percent Cumulative Percent

No 30 7.6 7.6 100.0

Total 394 100.0 100.0

Current A/c 20 5.1 5.1 100.0

Total 394 100.0 100.0

Frequency Percent Valid Percent Cumulative Percent

No 32 8.1 8.1 100.0

Total 394 100.0 100.0

Frequency Percent Valid Percent Cumulative Percent

No 38 9.6 9.6 100.0

Total 394 100.0 100.0

Frequency Percent Valid Percent Cumulative Percent

No 67 17.0 17.0 100.0

Total 394 100.0 100.0

Frequency Percent Valid Percent Cumulative Percent

No 63 16.0 16.0 100.0

Total 394 100.0 100.0

No 44 11.2 11.2 100.0

Total 394 100.0 100.0

No 78 19.8 19.8 100.0

Total 394 100.0 100.0

No 68 17.3 17.3 100.0

Total 394 100.0 100.0

ATM 164 41.6 41.6 82.5

Credit card 6 1.5 1.5 84.0

Other 63 16.0 16.0 100.0

Total 394 100.0 100.0

Frequency Percent Valid Percent Cumulative Percent