A

PROJECT REPORT
ON
“A STUDY OF AWARENESS & FINANCIAL LITERACY
AMONG THE STUDENTS”
SUBMITTED TO
SAVITRIBAI PHULE PUNE UNIVERSITY
IN PARTIAL FULFILMENT OF THE COURSE
BACHELOR OF BUSINESS ADMINISTRATION
BY
GAURAV NANDLAL KASAT
SEAT NO: ____
B.B.A. Sem-III

UNDER THE GUIDANCE OF PROJECT GUIDE

Asst. Prof. Pankaj Ghorpade

MARATHAWADA MITRA MANDAL’s COLLEGE OF

COMMERCE, PUNE 302/A, DECCAN GYMKHANA, PUNE-
411004
YEAR 2023-24
 MARATHWADA MITRA MANDAL’S COLLEGE OF COMMERCE
202 A, Deccan Gymkhana, Pune – 411004.

DEPARTMENT OF BUSINESS ADMINISTRATION

CERTIFICATE

This is to certify that the project entitled “A Study of

Awareness & Financial Literacy Among the Students” is being
submitted by Gaurav Nandlal Kasat in partial fulfillment for the degree
of Bachelor of Business Administration – (SYBBA Sem III) under the
guidance of Asst. Prof. Pankaj Ghorpade. As per syllabus laid down by the
Savitribai Phule Pune Universityduring academic year 2023-24.

Date: -

Exam Seat No.: -

Internal Examiner External Examiner

 DECLARATION
This is to certify that the project-work titled “A Study of Awareness
& Financial Literacy Among the Students” has been completed
satisfactorily and submitted in partial fulfillment of Bachelor Degree
in Business Administration of Savitribai Phule Pune University for the
academic year 2023-2024 by the following student of
MARATHAWADA MITRA MANDAL’s COLLEGE OF
COMMERCE, PUNE 411004. My intention to understanding
this project lies towards enhancing myknowledge in the field of
Banking & Finance.

PROJECT GUIDE HOD PRINCIPAL

Asst. Prof, Pankaj Ghorpade Dr. Ashwini Kulkarni Dr. Devidas Golhar
 ACKNOWLEDGEMENT

I would like to express my sincere thanks to the Savitribai Phule Pune

University and Principal- Dr. DEVIDAS GOLHAR, Head of Department- Dr.
Ashwini Kulkarni, and Marathwada Mitra Mandal’s college of Commerce for
giving me the opportunity to prepare and present this report.
“There is a good saying that the work is successfully completed if the person
is guided properly at the right time by the right person”, with that the good
opportunities that we receive as well as the efficient supervision and the most
valuable the internal guidance.
Hereby, I would like to express my deep gratitude towards our ‘Asst. Prof.
Pankaj Ghorpade, who helped and guide me in project work. His
encouragement and whole-hearted co-operation throughout the progress
helped me in completion of the project.
Last but not the least I would like to thank my family and friends for their
encouragement and direct or indirect support in completion of the project.

Gaurav Nandlal Kasat

SYBBA (Banking & Finance)
 INDEX
Sr.No. Title Pg.No.

PART A
1) Report On Guest Lecture 1

PART B
2) A Study of Awareness & Financial Literacy 7
Among the Students.
 Executive Summary 8
 Introduction 9
 Review of literature 11
 Research Methodology 14
 Data Interpretation 15
 Findings & Conclusion 33
 Recommendations 35
 Bibliography 36
 Annexure 37

3) PART C 42
Experiential Learning
 Bank Account 42
 RTGS 52
 NEFT 53
 Cheques 55
 Debit & Credit Card 60
 PART A

 Ms. Jaslena Bawa's lecture covered a wide range of topics

related to the finance industry, including:

o Recent trends in the finance industry

o Investor analysis
o Stock market
o Investor analysis project report over share market
o Financial modeling
o Holding in the market
o Relicare Motilal Oswal broking
o CFA CHARTER FINANCIAL ANALYSIS
o Tracking the industry
o Records analysis company report
o Joining PMS of old companies
o Mutual funds (Equity/debt)
o Fund manager (manage portfolio)
o Trader (operation trading)
o Technical analysis
o Budgeting
o Skill set
o Financial modeling
o Recent trade in finance
o Fin takes credit approval model
o Credit rating agency

1
 Here is a brief summary of some of the key points
from her lecture:

 Recent trends in the finance industry:

The finance industry is constantly evolving, and there are a number of new
trends that are emerging. Some of the most notable trends include the
rise of artificial intelligence (AI) and machine learning (ML), the growth
ofopen banking, and the increasing popularity of digital currencies.

 Investor’s Analysis:
Investor analysis is the process of evaluating a potential investment
opportunity. This involves assessing the company's financial
performance, management team, and industry outlook. It is also
important to consider your own investment goals and risk tolerance.

 Stock Market:
The stock market is a marketplace where investors can buy and sell shares
of publicly traded companies. The stock market is a volatile market, and
prices can fluctuate wildly. However, it can also be a very rewarding
placeto invest, as investors can potentially earn significant returns over the
longterm.

 Investor’s analysis project report over share market:

An investor analysis project report is a document that outlines the findings
of your investment research. It should include an assessment of the
company's financial performance, management team, and industry
outlook. It should also include your own investment recommendation.

2
 Financial Modeling:

Financial modeling is the process of creating a mathematical

representation of a company's financial performance. Financial models
can be used to forecast future earnings, assess the impact of different
business decisions, and value the company.

 Holding in the market:

Holding in the market refers to the practice of continuing to hold an

investment even when the market is volatile or declining. This can be a
risky strategy, but it can also be rewarding if the market eventually
recovers.

 Relicare Motilal Oswal Broking:

Relicare Motilal Oswal Broking is a leading Indian brokerage firm that

offers a wide range of financial services, including stockbroking, mutual
funds, and insurance.

 CFA (CHARTER FINANCIAL ANALYSIS)

The CFA Charter is a professional designation for financial analysts. It
is offered by the CFA Institute, a global association of investment
professionals. To earn the CFA Charter, candidates must pass a three-
levelexam and meet certain work experience requirements.

 Tracking the industry:

Tracking the industry is the process of monitoring the latest developments

in the finance industry. This can be done by reading industry
publications, attending industry events, and networking with other
professionals.

3
 Records analysis company report:

A records analysis company report is a document that summarizes the

findings of a review of a company's financial records. This type of report
is often used by investors to assess the company's financial health and
performance.

 Joining PMS of old companies:

PMS stands for Portfolio Management Service. PMS providers offer
investment management services to high-net-worth individuals. Joining
a PMS of an old company can be a good way to access the expertise of
experienced investment managers.

 Mutual Funds (Equity/Debt):

Mutual funds are investment vehicles that pool money from many
investors and invest it in a basket of securities. Equity mutual funds invest
in stocks, while debt mutual funds invest in bonds. Mutual funds are a
good way to diversify your investment portfolio and gain exposure to
different asset classes.

 Fund Manager (manage portfolio):

Fund managers are financial professionals who oversee investment funds,

making decisions to achieve returns and manage risk. They analyze
markets, conduct research, and build portfolios within the fund's
objectives. Their goal is to outperform benchmarks and they earn fees and
incentives for their services.

4
 Trader (Operation Trading):

A trader in operational trading is responsible for executing buy and sell

orders for financial instruments within a trading operation, with a focus on
efficient and timely trade execution while adhering to risk and compliance
guidelines. Their primary objective is to facilitate trades that align with the
firm's trading strategies and objectives.

 Technical Analysis: Technical analysis involves studying historical

price and trading data to predict future price movements. Analysts use
charts, indicators, and patterns to make investment decisions based on the
belief that past market behavior can offer insights into potential future
trends.

 Budgeting: Budgeting is the process of creating a financial plan that

outlines expected income and expenses. It helps individuals and
organizations manage finances, allocate resources efficiently, and set
financial goals for a specific period.

 Skill Set: A skill set refers to a combination of competencies, expertise,

and knowledge in a particular field. In finance, a well-rounded skill set
might encompass financial analysis, risk management, data interpretation,
and effective communication.

 Financial Modeling: Financial modeling involves building

mathematical representations of financial processes or assets to make
forecasts, assess risks, and aid in decision-making. This can include
creating complex spreadsheets or software models to evaluate investments,
business plans, or financial strategies.

5
 Recent Trade in Finance: A recent trade refers to the most recent
buying or selling of financial assets in the market, providing insight into
current market conditions and asset valuations.

 FinTech Credit Approval Model: FinTech credit approval models

are advanced systems that use technology and data analytics to assess
borrowers' creditworthiness, making lending decisions faster and more
accurate than traditional methods.

 Credit Rating Agency: Credit rating agencies are independent

organizations that assign credit ratings to assess the credit risk of entities,
helping investors gauge the safety of investments. These ratings are
essential in the bond and debt market, where higher ratings typically
indicate lower risk. Common rating agencies include S&P, Moody's, and
Fitch.

6
 PART B

A STUDY OF AWARENESS & FINANCIAL LITERACY

AMONG THE STUDENTS

7
 Executive Summary:

The Topic “A Study of Awareness & Financial Literacy Among the

Students” is related to understanding from the students about their financial
knowledge, source of their financial knowledge, etc. This survey will help us
to get some financial knowledge and also the financial literacy rate among
students. Financial literacy among students is very necessary for their stable
financial position in future. Schools also have a role to play and must
restructure their syllabus to nurture this skill to allow children to make
financially wise decisions as they become adults.
Literacy means being able to read, write, and understand information in
today's digital world. It's not just about basic reading and writing; it's about
understanding and using information effectively.
Financial literacy is about understanding how to manage your money, like
budgeting, saving, and investing. It helps protect you from scams and fraud.
In India, there's an organization called NCFE that helps people learn about
financial matters.
So, in simple terms, literacy is about understanding and using information,
and financial literacy is about knowing how to manage your money.

8
 Introduction:

Literacy is the ability to read, write, speak and listen in a way that lets us
communicate effectively and make sense of the world.
Acquiring literacy is not a one-off act. Beyond its conventional concept as a
set of reading, writing and counting skills, literacy is now understood as a
means of identification, understanding, interpretation, creation, and
communication in an increasingly digital, text-mediated, information-rich
and fast-changing world. Literacy is a continuum of learning and proficiency
in reading, writing and using numbers throughout life and is part of a larger
set of skills, which include digital skills, media literacy, education for
sustainable development and global citizenship as well as job-specific skills.
Literacy skills themselves are expanding and evolving as people engage
more and more with information and learning through digital technology.

“Literacy matters because it brings students into a life-long community of

learning that links people across borders. Literacy matters because it engages
citizens in meaningful ways to participate in building a society and
government of their choosing. Literacy matters because in a world with a
widening gap between connected and unconnected, reading and writing and
its partner, critical thinking, allow young and old to engage on equal
footing”.

Financial literacy: Financial literacy is the ability to understand and

effectively use various financial skills, including personal financial
management, budgeting, and investing.
Financial literacy refers to the knowledge and understanding of various
financial products. It helps individuals manage their money, personal
finances, investment, and tax planning. Its primary purpose is safeguarding
individuals from financial frauds and scams.

9
It is crucial for the realization of long-term goals—a child’s higher
education, buying a house, or establishing a business. It highlights
emergency funds, retirement funds, insurance, and estate planning.
Educating one individual creates a chain reaction—creating awareness
among friends, family, colleagues, neighbors, clients, etc.
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 financial literacy survey in 2015 to find the
level of financial awareness in India. It organises various programs to
improve financial literacy including collaborating with schools and
developing new curriculum to include financial management concepts. It
also conducts a yearly financial literacy test. The topics NCFE covers in its
awareness programs include investments, types of bank accounts, services
offered by banks, Aadhaar cards, demat accounts, pan cards, power of
compounding, digital payments, protection against financial frauds etc.

Key Takeaways:
o Financial literacy refers to basic personal finance skills—to competently
earn, spend, invest, save, budget, and borrow money.
o It includes personal financial management, succession planning,
investment decision-making, and tax planning.
o Individuals can acquire financial knowledge from short-term courses on
investing, financial management, and budgeting.
o In addition, one can read books, and blogs, intern at a financial firm, and
consult financial advisors.

10
 Review of literature: Certainly, here is a review of the literature
related to the study of awareness and financial literacy among students.

 Awareness of Financial Literacy:

1. Importance of Financial Literacy:

Numerous studies highlight the importance of financial literacy in
individuals lives. Lusardi and Mitchell (2011) argue that financial literacy is
a fundamental skill for economic well-being, and a lack of awareness in this
area can lead to adverse financial outcomes.

2. Awareness Levels:
Research by Mandell and Klein (2009) suggests that students often lack
awareness of their financial illiteracy. They may overestimate their financial
knowledge, leading to overconfidence in their decision-making abilities.

3. Perceived Relevance:
Gapsch and Koellinger (2016) found that the perceived relevance of
financial literacy was positively correlated with awareness. Students who
recognized the importance of financial skills were more likely to seek
financial education.

 Financial Literacy Levels:

1. Assessment of Financial Knowledge:

A study by Fernandes et al. (2014) used a standardized financial literacy test
to assess students knowledge. They found that a significant proportion of
students lacked understanding in basic financial concepts.

11
2. Demographic Variations:
The literature suggests that demographic factors, such as age, gender, and
educational background, can influence financial literacy. For example,
Lusardi and Tufano (2015) found gender disparities in financial literacy,
with women often having lower levels of financial knowledge.

3. Educational Interventions:
Interventions, such as financial education programs, have been shown to
improve financial literacy. The study by Hung et al. (2014) demonstrated
that students who received financial education exhibited greater financial
knowledge and more responsible financial behaviors.

 Factors Affecting Financial Literacy:

1. Family Influence:
Research by Dwyer and McCloud (2019) suggests that family background
and parental teaching play a vital role in shaping students financial attitudes
and behaviors.

2. Cultural and Socioeconomic Context:

The cultural and socioeconomic context can impact financial literacy. Chen
and Volpe (1998) explored the influence of culture on financial literacy
levels, highlighting variations among different ethnic groups.

3. Financial Attitudes and Behaviors:

The relationship between financial attitudes, behaviors, and literacy has been
explored by various studies. Shim et al. (2009) found that financial attitudes,
such as risk tolerance, can influence financial literacy.

12
Conclusion:
The literature review underscores the significance of awareness and financial
literacy among students. While some students may recognize the importance
of financial literacy, many lack adequate knowledge in this area. Factors
such as demographics, education, family background, and cultural context
influence students' financial literacy levels. Educational interventions have
shown promise in improving financial literacy, emphasizing the need for
educational institutions to prioritize financial education. Understanding these
findings is critical in developing effective strategies to enhance financial
literacy among students and equip them with the skills needed for financial
success in their future endeavors.

13
Research Methodology
 Objectives of study:

i. Understand how students use their money and make financial

decisions.

ii. Determine the level of financial knowledge of the students.

 Scope of the study:

The aim of the study is to find out the financial literacy level among the
students. The study covers 100 students in Pune district which is one of
the leading educational district in Maharashtra.

 Sample Size:

To conduct a survey of minimum 100 responses to understand the study

of Awareness & Financial Literacy Among the Students.

 Sources of data collection:

a) Primary Data: The data for studying the awareness and financial
literacy among the students is collected through google form of about
100 students.

b) Secondary Data: Websites

Internet
Reference Book (Banking & Finance)

14
Data Interpretation:

Interpretation:
o 55% of students are between 18 to 20 years old, which is a common age
range for higher education.
o 20% fall within the 20 to 22 age group, suggesting a somewhat older
segment.
o 9% of students are in the 16 to 18 age group, likely representing those
still in high school or early in college.
o 16% of students are above 22, indicating a more mature segment,
possibly including graduate students or those returning to education after
work experience.

This age diversity highlights the need for tailored financial literacy
programs to address the varying financial knowledge and needs of
students in different age groups.

15
Interpretation:
o 81% of students identified as male.
o 19% of students identified as female.
o 0% of students chose to prefer not to disclose their gender.

The data reveals a significant gender disparity among the surveyed

students. A substantial majority, 81%, identified as male, while a smaller
proportion, 19%, identified as female. Notably, no respondents chose the
“Prefer not to say” option for gender.

Therefore, the survey findings could potentially guide the development of

more inclusive and gender-sensitive financial education programs.

16
Interpretation: The survey data on student’s educational qualifications
shows:
o 9% of students have completed SSC (Secondary School Certificate).
o 15% have completed HSC (Higher Secondary Certificate).
o 57% are pursuing undergraduate degrees.
o 19% are pursuing postgraduate degrees.

This data emphasizes the diversity of educational backgrounds among the

surveyed students, underlining the necessity of tailoring financial
education programs to address the unique needs of students at various
academic stages.

17
Interpretation:
o A significant percentage (40%) of students consider school or college as
their main source of financial knowledge. This suggests that educational
institutions play a pivotal role in imparting financial education to
students.

o A notable proportion (20%) of students prefer financial books, indicating

a preference for written, in-depth materials for acquiring financial
knowledge. This group may include individuals who enjoy self-paced
learning.

o A substantial number (27%) of students turn to financial videos,

reflecting the influence of multimedia and visual content in learning
about finance. Online platforms like YouTube and educational websites
are likely instrumental in this preference.

o Additionally, 13% of students rely on financial articles, suggesting that

written content, possibly from websites, blogs, or financial magazines, is
a source they find valuable for learning about finance.

18
Interpretation:
o A quarter of the respondents (25%) believe that the teenage years are the
most appropriate time to start investing. This group likely recognizes the
benefits of early investing to capitalize on compounding and long-term
growth.

o Half of the students (50%) consider the early 20s as the best time to begin
investing. This majority opinion aligns with the idea that starting early in
one's career or educational journey can lead to greater financial security
and wealth accumulation over time.

o A notable proportion (21%) suggests that the late 20s to early 30s is a
suitable time to commence investing. These students may focus on
building a financial foundation first, such as completing education or
securing a stable income, before diving into investments.

o A small percentage (4%) thinks that one should start investing in their
mid-30s and beyond. This group may prioritize other financial goals or
responsibilities before embarking on investment ventures.

19
Interpretation:

o 65% of students responded “yes” indicating that they have knowledge

about financial terms.

o 9% of students answered “No” signifying that they do not possess

knowledge in this area.

o 26% of students responded “maybe” suggesting uncertainty or a partial

understanding of financial terms.

20
Interpretation:

o 70% of students have heard of the term “financial literacy”.

o 13% of students have not heard of the term.

o 17% of students respond with “maybe”, indicating potential uncertainty

or a partial understanding of the term.

21
Interpretation:

o 87% of students are aware of basic banking processes.

o 5% of students are not aware of these processes.

o 8% of students respond with “maybe” indicating potential uncertainty or

a partial understanding of these processes.

22
Interpretation:

o 65% of students have some idea about financial budgeting.

o 21% of students have no idea about financial budgeting.

o 14% of students respond with “maybe” indicating potential

uncertainty or a partial understanding of financial budgeting.

23
Interpretation:

o A significant majority (81%) of student’s report using E-banking,

signifying a high level of engagement with electronic banking services.
This group is likely comfortable with online banking, mobile apps, and
other digital financial platforms.

o A minority (19%) of students do not use E-banking. They may prefer

traditional banking methods or have limited access to electronic banking
services.

In summary, the survey data shows that a substantial majority of students

(81%) use E-banking, highlighting the prevalence of digital financial
services in their financial lives, while (19%) do not use E-banking.

24
Interpretation:
o A significant majority (53%) of students strongly agree that students
should receive financial education from a young age. This group
recognizes the value of early financial literacy and its long-term benefits.

o An additional 34% of students agree with the statement, further

indicating strong support for financial education in early stages of
education.

o A notable portion (11%) of students remain neutral, potentially reflecting

uncertainty or a lack of strong opinion on the matter.

o A very small percentage (2%) of students disagree with the statement,

suggesting that they may have reservations about the timing or content of
financial education in early education.

o Notably, no students strongly disagree with the idea of financial

education from a young age.

25
Interpretation:
o 34% of students strongly agree that they are knowledgeable about
insurance and its role in financial planning.

o An even larger proportion (44%) of students agree with the statement,

indicating that they have some level of knowledge and understanding of
insurance in the context of financial planning.

o 15% of students are neutral, possibly reflecting uncertainty or a lack of

strong opinion on their knowledge.

o 6% of students disagree with the statement, indicating that they may not
feel knowledgeable about insurance in the context of financial planning.

o A very small percentage (1%) of students strongly disagree, indicating

strong disagreement with the idea that they are knowledgeable about
insurance in the context of financial planning.

26
Interpretation:
o A substantial portion (42%) of students strongly agree that it is important
to understand taxes for financial literacy, indicating a clear recognition of
the role of tax knowledge in overall financial understanding.

o An even larger percentage (44%) of students agree with the statement,

emphasizing their belief in the importance of tax understanding for
financial literacy.

o A notable proportion (11%) of students are neutral, which may signify

uncertainty or a lack of a strong stance on the topic.

o A small minority (2%) of students disagree with the statement, indicating

they do not see a strong link between understanding taxes and financial
literacy.

o A very small minority (1%) of students strongly disagree with the

statement, suggesting strong disagreement with the idea that tax
knowledge is important for financial literacy.

27
Interpretation:

o A significant portion (46%) of students feel very confident about their

ability to manage their finances, indicating a high level of self-assurance
in their financial management skills.

o Another substantial group (34%) of students are somewhat confident,

suggesting that they have a moderate level of confidence in their
financial management abilities.

o A notable percentage (18%) of students do not feel very confident about

managing their finances. This group expresses some doubt or lack of
confidence in their financial management skills.

o A very small percentage (2%) did not provide a response, which may
reflect uncertainty or a decision not to answer the question.

28
Interpretation:

o A significant minority (24%) of students do not maintain any financial

records, suggesting a lack of record-keeping in their financial
management.

o A substantial majority (47%) of students maintain minimal financial

records. This group may keep basic records but not in a detailed or
comprehensive manner.

o A noteworthy proportion (29%) of students maintain very detailed

financial records, indicating a strong commitment to keeping track of
their financial transactions and activities.

29
Interpretation:

o A significant proportion (41%) of students believe that 30-40% of their

earnings should be saved for bigger goals. This group emphasizes the
importance of substantial savings to meet future financial aspirations.

o Another notable group (36%) suggests that 10-20% of earnings should be

saved. While not as aggressive in saving, this group recognizes the value
of setting aside a portion of their income for larger goals.

o A smaller proportion (16%) of students advocates for saving 50-60% of

their earnings, highlighting an even stronger commitment to savings.

o A minority (7%) of students prefer to spend all their earnings now and
save later. This group may prioritize immediate consumption over long-
term savings.

30
Interpretation:

o A significant majority (79%) of students correctly identified that “KYC”

stands for “Know your customer”. This group demonstrates a good
understanding of this important financial term.

o A small minority (6%) of students chose the incorrect option “Know your
character”, indicating a misunderstanding of the abbreviation.

o An even smaller group (4%) selected “Both of above”, including the

correct and incorrect answers, which suggests some confusion or
uncertainty.

o A notable percentage (11%) of students responded with “None of above”,

indicating that they are not familiar with the abbreviation “KYC” or its
meaning.

31
Interpretation:

o A minority (14%) of students correctly identified that education loans

cover tuition fees and related expenses, reflecting some knowledge of the
purpose of these loans.

o A smaller minority (4%) chose the option “Are repayable after

completion of the course”, which is one aspect of education loans, but not
the complete definition.

o An additional group (10%) of students selected “Granted for studies in

India & Abroad”, which is another aspect of education loans but also not
the complete definition.

o A significant majority (72%) of students chose “All of above”, indicating

that they believe that an education loan encompasses all the provided
options, which is generally correct.

32
Findings and Conclusion:

 Findings:

1. Varying Levels of Financial Knowledge: The survey showed that

students have different levels of knowledge about financial topics. Some are
well-informed, while others have gaps in their understanding.

2. Mixed Understanding of Financial Terms: Students had varying levels

of understanding when it came to financial terms like “KYC” and “education
loans”. Some knew the correct meanings, while others were unsure or
provided incorrect answers.

3. Diverse Savings Habits: Students had different opinions on how much of

their earnings they should save, indicating a lack of consensus on the “ideal”
savings rate.

4. Financial Record-Keeping Practices: While many students maintained

financial records, a significant portion did not, highlighting the need for
education on the benefits of keeping financial records.

5. Differing Confidence in Financial Management: Most students

expressed confidence in managing their finances, but a notable minority did
not feel very confident.

6. Agreement on Tax Importance: There was a consensus among students

about the importance of understanding taxes in financial literacy.

33
 Conclusion:

To sum it up, students have varying levels of financial knowledge, which

calls for tailored financial education programs that cater to individual needs.
Standardizing financial terminology is important to ensure clear
communication, and these programs should emphasize consistent definitions
of financial terms.

Additionally, personalized financial planning guidance can help students

with their diverse savings habits. Education on the benefits of maintaining
financial records is necessary for those who don't keep any records. Boosting
the financial confidence of students who are less assured about their
financial management skills is essential. The consensus on the importance of
understanding taxes is a positive sign, highlighting the significance of tax
knowledge in personal finance. Overall, comprehensive financial education
is crucial to empower students to make informed financial decisions.

34
Recommendations:

o Introduce comprehensive financial education programs in schools and

colleges.

o Ensure standardized and clear language in financial education materials.

o Encourage students to set individual financial goals and savings plans.

o Promote the benefits of maintaining financial records for informed

decision-making.

o Implement programs to boost the financial confidence of students with

lower self-assurance.

o Include tax-related topics in the curriculum for a well-rounded financial

education.

o Collaborate with financial experts and institutions to provide real-world

insights.

o Encourage students to pursue ongoing financial education through

reputable resources.

o Make sure lessons fit each student's understanding.

o Help students set their own money goals and plans.

o Explain the benefits of keeping track of their money.

o Boost the confidence of students who feel unsure about money.

35
Bibliography:
o Department of Financial Services, Ministry of Finance, Government of
India. (2017). Financial Literacy Centre’s in India.
Retrieved from
https://financialservices.gov.in/sites/default/files/Policy%20Note%20on
%20Financial%20Literacy%20Centres%20%28FLCs%29.pdf

o Kapoor, A., & Vakade, A. (2018). Assessment of financial literacy

among youth: A study of students in Pune city, India. International
Journal of Economics, Commerce, and Management, 6(7), 52-63.

o Reserve Bank of India. (2017). Financial Literacy Initiatives in India.

Retrieved from
https://rbi.org.in/Scripts/PublicationsView.aspx?id=18633

o Rathi, S. (2015). A study on financial literacy of college students with

special reference to Pune city. International Journal of Research in
Management, Economics and Commerce, 5(5), 11-16.

o https://www.investopedia.com/

o https://www.unesco.org/en/literacy/need-know

o https://literacytrust.org.uk

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Annexure:

1) Age
o 16 to 18
o 18 to 20
o 20 to 22
o Above 22

2) Gender
o Male
o Female
o Prefer not to say

3) Educational Qualifications
o SSC Passout
o HSC Passout
o Under Graduation
o Post-Graduation

4) Which is best source of get financial knowledge?

o School / College
o Financial Books
o Financial Videos
o Financial Articles

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5) When is the most appropriate time to start investing for
your future?
o During your teenage years
o In your early 20s
o In your late 20s to early 30s
o In your mid-30s and beyond

6) Do you have knowledge about financial terms?

o Yes
o No
o Maybe

7) Have you heard of the term “financial literacy” before?

o Yes
o No
o Maybe

8) Are you aware of basic banking process like deposit &

withdraw of money?
o Yes
o No
o Maybe

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9) Do you have any idea about financial budgeting.
o Yes
o No
o Maybe

10) Do you use E-banking?

o Yes
o No

11) Students should receive financial education from a young

age?
o Strongly Agree
o Agree
o Neutral
o Disagree
o Strongly Disagree

12) Students are knowledgeable about different types of

insurance and their importance in financial planning.
o Strongly Agree
o Agree
o Neutral
o Disagree
o Strongly Disagree

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13) Students believe understanding taxes is important for
financial literacy.
o Strongly Agree
o Agree
o Neutral
o Disagree
o Strongly Disagree

14) How confident do you feel about your ability to manage

your own finances?
o Very confident
o Somewhat confident
o Not very confident
o Not confident at all

15) In what manner do you maintain financial records?

o Maintain no records
o Maintain minimal records
o Maintain very detailed records

16) What percentage of your pocket money or earnings should

you think about saving for bigger goals?
o 10-20%
o 30-40%
o 50-60%
o Spend it all now, save later

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17) KYC Means?
o Know your customer
o Know your character
o Both of above
o None of above

18) Education loan stands for?

o Cover tuition fee & expenses
o Are repayable after completion of course
o Granted for studies in India & Abroad
o All of above

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 PART C
EXPERIENTIAL LEARNING

BANK ACCOUNT

 A bank account is a financial account maintained by a bank or other

financial institution in which the financial transactions between the
bank and a customer are recorded. each financial institution sets the
terms and conditions for each type of account it offers, which are
classified in commonly understood types, such as deposit
accounts, credit card accounts, current accounts, loan accounts or many
other types of account. a customer may have more than one account.
once an account is opened, funds entrusted by the customer to the
financial institution on deposit are recorded in the account designated
by the customer. funds can be withdrawn from loan loaders.
 Bank accounts offer numerous benefits, including a safe place to store
money, easy access to funds, the ability to earn interest or dividends on
deposits, and the convenience of electronic transactions. They play a
crucial role in personal finance, helping individuals build credit,
establish financial stability, and manage expenses effectively.
Ownership and access to a bank account are typically granted through
unique account numbers and security measures like PINs, password,
and, in cases, biometric authentication.
 There are several types of bank accounts, each designed to cater to
specific financial needs and goals. Here are some of the most common
types of bank accounts:

 TYPES OF BANK ACCOUNT

1. Savings Bank Account

2. Current Bank Account

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 Saving Account: A savings account is a financial product
offered by banks and credit unions that provides a secure place
for individuals to deposit and store their money while earning
interest. It is designed for saving rather than frequent spending.
Some key features of savings accounts include interest earnings,
safety due to government-backed insurance, high liquidity with
easy access to funds, no risk to the principal amount, potential
minimum balance requirements, and the possibility of fees for
certain transactions or falling below the minimum balance.
Many savings accounts offer online and mobile banking
services for convenient account management. The interest
earned on savings accounts is generally considered taxable
income, and it's important to report it on your tax return.
Savings accounts are commonly used for various purposes, such
as building an emergency fund, saving for specific goals, or
simply setting aside funds for future needs. The choice of a
savings account should align with your financial goals and
preferences, taking into consideration the terms and offerings
provided by the financial institution.

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 Advantages of Savings Bank Account:

 Savings accounts are typically insured up to a certain limit by

government agencies like the Federal Deposit Insurance Corporation
(FDIC) in the United States. This means that your money is protected,
even if the bank fails.
 Savings accounts offer a high degree of liquidity, meaning you can
access your money easily and quickly. You can withdraw funds from
your savings account through ATMs, in-person bank visits, online
transfers, or even checks, depending on the bank's policies.
 Most savings accounts do not have a lock-in period or a fixed term. You
can deposit and withdraw money at any time without incurring penalties
or fees.
 Opening a savings account is a straightforward process. It usually
requires minimal documentation, making it accessible to a wide range of
individuals, including students and low-income earners.
 Savings account statements provide a record of your transactions, making
it easier to track your savings and monitor your financial progress .
 You can use savings accounts to save for specific financial goals, such as
a vacation, a down payment on a home, or your child's education. Having
separate accounts for different goals can help you track your progress.

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 Disadvantages Of Savings Bank Account:

 One of the most significant drawbacks of savings accounts is their typically

low interest rates. The interest earned on savings accounts may not keep
pace with inflation, potentially reducing the real value of your savings over
time.
 Many savings accounts have restrictions on the number of withdrawals or
transfers you can make per month. Exceeding these limits may result in
fees or account closure.
 Because savings account interest rates are often lower than the inflation
rate, your purchasing power may decrease as the cost of goods and services
rises. This means your money might not grow enough to maintain its real
value.
 Some savings accounts require a minimum balance to open or maintain the
account. If your balance falls below this threshold, you may be subject to
monthly fees or account closure.
 If you hold a savings account in a foreign currency, you may be exposed
to currency exchange rate fluctuations, which can impact the value of your
savings.
 While savings accounts are suitable for short-term goals and emergency
funds, they are generally not the best choice for long-term wealth
accumulation or retirement savings.

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 Current Account: Current bank account is opened by businessmen
who have a higher number of regular transactions with the bank. It
includes deposits, withdrawals, and contra transactions. It is also known
as Demand Deposit Account.
Current account can be opened in co-operative bank and commercial
bank. In current account, amount can be deposited and withdrawn at any
time without giving any notice. It is also suitable for making payments to
creditors by using cheques. Cheques received from customers can be
deposited in this account for collection.
In India, current account can be opened by depositing Rs.5000 to Rs.
25,000. The customers are allowed to withdraw the amount with cheques,
and they usually do not get any interest. Generally, current account
holders do not get any interest on their balance lying in current account
with the bank.
Current account holder gets one important advantage of overdraft facility.

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 Advantages Of Current Bank Account:

 Current account is mainly opened for businessmen such as proprietors,

partnership firms, public and private companies, trust, association of
persons, etc. that has a large number of daily banking transactions, i.e.,
receipts and/or payments.
 It enables businessmen to carry out their business transactions properly
and promptly.
 The businessmen can withdraw from their current accounts without any
limit, subject to banking cash transaction tax, if any levied by the
government.
 Home branch is that location where one opens his bank account. There
are no restrictions on deposits made in the current account opened in a
home branch of a bank. However, the current account holder can deposit
the cash from any other branch of a bank other than the home branch by
paying a nominal charge as applicable.
 It helps businessmen to make a direct payment to their creditors by
issuing cheques, demand-drafts or pay-orders, etc.
 It enables a bank to collect money on behalf of its customers and credits
the same in their customers' current accounts.
 It enables the current account holder to obtain overdraft (short-term
borrowing) facility.
 The creditors of the account holder can get credit-worthiness information
of the account holder through inter-bank connection.
 It facilitates the industrial progress of the country. Without its help,
businessmen would face difficulties in running their businesses.
 It has the facilities of Internet-banking and mobile-banking to carry out
important business transactions with ease and quickly.
 It also provides various other advantages (benefits) such as:
 Deposit and withdrawal of money (cash) at any location.
 Multi-location funds transfer.
 Support from customer care executives.

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 Disadvantages Of Current Account:

 Low or No Interest: Unlike savings accounts or other investment

options, current accounts typically offer minimal to no interest on the
deposited funds. This means that the money in a current account does not
grow significantly over time, which can be a disadvantage for those
looking to earn a return on their savings.
 Account Fees: Many current accounts come with account maintenance
fees, transaction fees, and other charges. These fees can eat into the
account holder's balance, particularly for businesses with a high volume
of transactions.
 Overdraft Fees: While the overdraft facility can be advantageous, it can
also be a drawback. Using the overdraft incurs interest charges and fees,
making it an expensive form of borrowing.
 Limited Investment Options: Current accounts are not designed for
investment purposes. They do not offer the same range of investment
options as other financial products, such as mutual funds or retirement
accounts.
 Not Suitable for Savings: Current accounts are not intended for long-
term savings or wealth accumulation. Using them as a primary savings
vehicle may result in lower returns compared to other savings or
investment options.
 Security Concerns: While current accounts are generally secure, they
are not as heavily insured as savings accounts. In the event of a bank
failure, the funds in a current account may not be fully protected.
 Tax Considerations: Interest earned on a current account is typically
subject to income tax, which can reduce the effective return on the
account balance.
 Currency Risk: If the account is denominated in a foreign currency, it
may be exposed to exchange rate fluctuations, which can impact the
value of funds when converted to the local currency.

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 Deposit Slip of Savings Account:

 A deposit slip is a form provided by banks for account holders to deposit

money. It includes details like the account holder's name, account
number, date, deposit amount (cash and checks), and often requires a
signature. This slip is attached to the funds being deposited and serves as
a record of the transaction. It helps banks process deposits accurately and
provides proof of the deposit for the account holder.

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 Withdrawal Slip of Savings Account:

 A withdrawal slip is a form provided by banks that account holders use to

take money out of their bank accounts. It includes details like the account
holder's name, account number, date, withdrawal amount (in cash or
checks), and a signature for authorization. The completed slip is
submitted to the bank for processing, with the requested funds either
dispensed in cash or issued as checks, as specified. It serves as a record
of the transaction and ensures the withdrawal is accurately processed.

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 Account Opening Form: Savings & Current A/C

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 RTGS

 REAL TIME GROSS SETTLEMENT

 RTGS is a modern, robust, integrated payment and continuous (real
time) settlement system developed by RBI, whereby the Banks and
Financial Institutions (Member Banks/FIs) transfer funds (both for
customers and inter-bank transactions) to one another on an
immediate, final and irrevocable basis during the stipulated business
hours as indicated below:

 Timing for RTGS Transactions:

 RTGS has been made available for customer and inter-bank
transactions round the clock on all days of the year excluding RTGS
holidays declared by RBI.
 The timings for RTGS transactions at Branch Interface will be as per
the timings of the Branch.

 Charges for NEFT/RTGS transactions:

 For RTGS, the minimum amount (floor limit) is Rs.2 lakh for
customer Transactions. There is no maximum limit]

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 NEFT

 NATIONAL ELECTRONIC FUNDS TRANSFER

 NEFT is an electronic payment system developed by RBI to facilitate
transfer of funds by customers from one bank to another bank in
India. It is a secured, economical, reliable and efficient system of
funds transfer between banks.
At the time of funds transfer, the remitter has to furnish the necessary
details i.e., Name & Account No. of the beneficiary, Name of
bank/branch and IFSC Code of the beneficiary branch. All our CBS
branches have been enabled for both RTGS/NEFT transactions.

 Timings for NEFT Transactions:

 NEFT has been made available for customer on all days of the year
(24x7), including holidays.
The timings for NEFT transactions at Branch Interface will be as per
the timings of the Branch.

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 RTGS AND NEFT FORM

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 CHEQUES:

 What Is Cheque: A cheque is a document that orders a bank to pay a

certain sum of money from a person’s account to another person or
company’s account in whose name the cheque has been issued. A cheque
is used to make safe, secured, and hassle-free payments. It serves as a
convenient option as there is no involvement of hard cash during the
transfer process.

 Features of Cheques:

 Always drawn on a banker where the drawer has an account

 Always payable on demand
 Does not require acceptance. However, there is a custom among the
banks to mark cheques as good for purposes of payment
 Cheques may be payable to the drawer himself. It may be made payable
to bearer on demand unlike a bill or a promissory note
 Banker is liable only to the drawer
 A holder has no remedy against the banker if a cheque is dishonored
 A cheque is usually valid for 3 months in India from the date of its
issuance. However, it is not valid if it is postdated or antedated cheque.
 No stamp is required to be affixed on cheques

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1. Bearer Cheque: The bearer cheque is a type of cheque in which the bearer
is authorised to get the cheque encashed. This means the person who
carries the cheque to the bank has the authority to ask the bank for
encashment.

This type of cheque can be used for cash withdrawal. This kind of
cheque is endorsable. No kind of identification is required for the bearer
of the cheque.

2. Traveller’s Cheque: As the name suggests, the Traveler’s cheque can

be used when a person is travelling abroad where the Indian currency is
not used.
If a person is travelling abroad, he can carry the traveller’s cheque and
get encashment for the same in abroad countries.

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3. Order Cheque: This type of cheque cannot be endorsed, i.e., only the
payee, whose name has been mentioned in the cheque is liable to get cash
for that amount. The drawer needs to strike the “OR BEARER” mark as
mentioned on the cheque so that the cheque can only be encashed to the
payee.

For Example: If a cheque has been signed with the name of Varun, then
only the payee can visit the bank to get an encashment for the same for an
order cheque

4. Crossed Cheque: In this type of cheque, no cash withdrawal can be

done. The amount can only be transferred from the drawer’s account to
the payee’s account. Any third party can visit the bank to submit the
cheque.

In case of a crossed cheque, the drawer must draw two lines at the left top
corner of the cheque.

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5. Account Payee Cheque: This is the same as the account payee
cheque but no third-party involvement is required. The amount shall be
transferred directly to the payee’s account number. To ensure that it is an
account payee cheque, two lines are made on the left top corner of the
cheque, labelling it for “A/C PAYEE”.

6. Blank Cheque: When a cheque only has a drawer’s signature and all
the other fields are left empty, then such a type of a cheque is called a
blank cheque. The above-mentioned types of cheques are the most
commonly known and used in the Indian banking industry. Let us now
know the parties associated with a cheque.

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7. Canceled Cheque: A cancelled cheque is a type of crossed cheque
that has two parallel lines drawn across it and the word “CANCELLED”
written between the lines. This makes it impossible for anyone to use the
cheque for unauthorized financial transactions.
However, cancelled cheques still contain sensitive information, such as
bank account numbers, account holder’s name, cheque number, MICR
code, and IFSC code, that could potentially be stolen or misused through
cybercrime. As a result, it is important to handle cancelled cheques with
care and ensure that they are stored and disposed of securely.

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 Debit & Credit Card:

1. Debit Card: A debit card is a payment card that deducts money directly
from your checking account. Also called “check cards” or “bank cards”,
debit cards can be used to buy goods or services or to get cash from an
ATM. Debit card can help you reduce the need to carry cash, although using
these cards can sometimes entail fees.

Key Points:
 Debit cards are payment cards that reduce the need to carry cash or
physical checks to make purchases.
 You can use debit cards at ATMs to withdraw cash.
 Debit card purchases may require a personal identification number
(PIN), but some purchases can be made without one.

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2. Credit Card: A credit card is a thin rectangular piece of plastic or metal
issued by a bank or financial services company that allows cardholders to
borrow funds with which to pay for goods and services with merchants that
accept cards for payment. Credit cards impose the condition that
cardholders pay back the borrowed money, plus any applicable interest, as
well as any additional agreed-upon charges, either in full by the billing date
or over time.

Key Points:
 Credit cards are plastic or metal cards used to pay for items or services
using credit.
 Credit cards charge interest on the money spent.
 Credit cards may be issued by stores, banks, or other financial
institutions and often offer perks like cash back, discounts, or reward
miles.
 Secured credit cards and debit cards offer options for those with little or
bad credit.

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