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Aman-Mrinal Financial Management Assignment
Aman-Mrinal Financial Management Assignment
OF
FINANCIAL MANAGEMENT
PRESENTED BY
AMAN KUMAR IMS, UNIVERSITY OF LUCKNOW
MBA(IB)
MRINAL PANDEY
MBA(FC)
PRESENTED TO
DR VASUDHA MA’AAM
TOPIC NAME
• Financial literacy is the ability to use skills and knowledge to take effective and
informed money management decisions. In India. 76 percent of its adult population
does not understand even basic financial concepts. Basically It is a Skill which allow
an individual to build there personal wealth with the help of effective decision
making based on the present income.
FINANCIAL LITERACY IN INDIA
• India’s financial literacy rate among its young and adult population has been growing due to
various factors including the recent advancement in technology and media coverage. The
government of India and various regulators are constantly working towards growth by
implementing financial literacy courses, workshops and schemes. From mobile banking to online
payments and insurance; the country has a huge number of online financial services users. This
helped improve India’s financial literacy as the awareness and ease of insurance and banking
increased. Number of transactions with respect to digital payments in India grew 5x from 1,004
crores (10.04 billion) in 2016-17 to 5,554 crores (55.54 billion) in 2020-21. Furthermore, the value
of fintech transactions is expected to rise at a CAGR of 20% to US$ 138 billion in 2023 from US$
66 billion.
AGE WISE FINANCIAL LITERACY IN 2021
FINANCIAL LITERACY IN INDIA CONTD..
• follow:
• Development of rural areas: Reaching out to rural sections and working on their development can be
achieved through financial literacy. This can be achieved by making people more aware about the
available resources and right way of utilizing them.
• Ease in borrowing: Based on an RBI study, 42.9% of population borrowed money from informal
sources and pay higher interests. A strong financial education can help small traders make informed
decisions and make the best use of available resources.
• Ease in doing business transactions: The launch of Pradhan Mantri Jan Dhan Yojana has led to an
addition of 280 million new bank accounts. These accounts have led to an ease in doing business and
has also promoted cashless transactions to a great extent.
• Growth of MSMEs: MSMEs contribute to 29% of India’s GDP with 50% of the exports coming from
this sector. Financial literacy can help small businesses grow and even bring new businesses to the
market.
OUTLOOK FOR INDIA’S FINANCIAL LITERACY
Despite having a population of 1.3 billion people, about 76% of the adult population are yet to
improve upon their understanding about basic financial concepts. India has the potential to be among
the top financial literate country in the world as 27.6% of its people between the age group 25-44
continue participating in the financial inclusion program through financial education. This rate could
expand by more than 20% in the next two decades, if the youngsters within the age group 10-19 are
also provided proper financial education. This group constitute about 21.8% of India’s population.
Financial abilities could lead to general economic growth and increase the standard of living. India’s
work force combined with strong financial education can take the country to great levels. A financially
savvy India would be a big global influence.
AT LAST...
• If we think about our initial working life we have committed a lot of money mistakes
in those critical years, if we would have got adequate financial literacy our financial
situation could have been much better. Now should we allow our children to repeat
our mistakes ? Parents and educators must recognize the importance of imparting
financial literacy among children at an early age. In this online transaction Era we can
not afford to miss imparting financial literacy to our children.
FINANCIAL INCLUSION
FINANCIAL INCLUSION
“The process of ensuring access to financial services and timely and adequate credit where
needed by vulnerable groups such as weaker sections and low income groups at an
affordable cost.” – NABARD
• ■The reserve bank of India (RBI) with the active participation of commercial banks has
set up the banking codes and standards board of India to ensure better banking services to
individual customers.
THANK YOU