STUDY OF ROLE OF FINANCIAL LITERACY IN RURAL INDIA (KEY IJP************699)

• Jayant D. Perge ,Dr. S.k Singh

Abstract

Financial literacy is a key determinant of economic stability and growth, particularly in rural India, where agricultural income and financial decision-making are crucial for livelihood sustainability. This study examines the role of financial literacy in shaping rural financial practices, focusing on its impact on savings, investments, borrowing behaviour, and financial planning among Indian farmers. Despite various governmental initiatives, financial illiteracy remains a significant challenge, leading to reliance on informal credit sources, poor financial management, and vulnerability to economic shocks. By analysing existing literature and empirical studies, this research highlights the importance of financial education in enhancing rural financial inclusion and economic empowerment. The findings suggest that improving financial literacy can lead to better financial stability, reduced debt dependency, and increased participation in formal banking systems. Strengthening financial awareness through targeted programs, digital platforms, and self-help groups is essential for fostering long-term financial independence and sustainable rural development.