Change in Financial Literacy in Punjab and Haryana Post-Financial Inclusion Schemes

20 Pages Posted: 22 Oct 2015

See all articles by Ravisha Chutani

Ravisha Chutani

Bansathali Vidyapith

Harsh Purohit

Banasthali Vidyapith

Sonal Purohit

Banasthali University

Date Written: October 21, 2015

Abstract

Financial literacy has become increasingly important over the past decades. There is a growing belief that the individual would need to become more self-reliant in the future. Increased competition and more complex products in the financial services industry leave many people ill-equipped to cope with the sophisticated choices they may need to make. While defining Bhartiya Model of Financial Literacy, Purohit. H (2015) in his new model of financial literacy in Indian context on Ictpost said that Financial literacy can be defined as a small subset of Purusharth which though cannot be understood in isolation yet it deals with the financial knowledge, behavior, attitude, approach choice pattern, emotions, mindset and lifestyle keeping in view that Moksh (oneness with God) and not the material wealth is the top priority, for overall happiness of self, family, society, nation, world and the universe. There are several schemes which have been launched in India under financial inclusion like Pradhan Mantri Jan Dhan Yojana (PMJDY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Atal Pension Yojana (APY) so that people can have the knowledge and access to all these schemes. So there is a need that people should have the knowledge of financial products and services and also they should be financially included.

NCFE conducted a survey before these schemes were launched, but the question is has the financial literacy improved now? This has to be researched.

Furthermore, and most importantly, all the earlier studies have focused upon improving financial literacy using OECD (Organization for Economic Co-operation and Development) model but actually the studies need to take into consideration BMFL (Bhartiya Model of Financial Literacy) in evaluating and creating new knowledge for improving the financial literacy among people. Researches should also evaluate impact of post-financial inclusion schemes (launched by our Hon’ble Prime Minister Narendra Modi) on the financial literacy in the states of Punjab and Haryana.

Keywords: Financial Literacy, Punjab, Haryana, BMFL, OECD, Financial Inclusion, India

JEL Classification: J14

Suggested Citation

Chutani, Ravisha and Purohit, Harsh and Purohit, Sonal, Change in Financial Literacy in Punjab and Haryana Post-Financial Inclusion Schemes (October 21, 2015). Available at SSRN: https://ssrn.com/abstract=2677132 or http://dx.doi.org/10.2139/ssrn.2677132

Ravisha Chutani

Bansathali Vidyapith ( email )

Banasthali
Newai, 304022
India

Harsh Purohit (Contact Author)

Banasthali Vidyapith ( email )

Banasthali Vidyapith
P.O. Banasthali Vidyapith
Rajasthan, Rajasthan 304022
India
9887886320 (Phone)

Sonal Purohit

Banasthali University ( email )

Banasthali Vidyapith
P.O. Banasthali Vidyapith
Rajasthan, Rajasthan 304022
India

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