The Need for Financial Literacy and Awareness

Financial inclusion goes beyond just opening bank accounts. The RBI's Financial Inclusion Index (FI index) measures the holistic nature of financial inclusion, taking into account factors such as access, usage, and quality. While access to financial infrastructure has improved, the usage and quality sub-indices are lagging behind. To address this, there is a need for increased financial literacy and awareness. Leveraging technology, such as sharing financial information in regional languages through mobile phones, can be an effective strategy to improve financial engagement and inclusion. Building awareness about the benefits of services like microinsurance, pensions, and microloans is crucial to ensuring that individuals make full use of their bank accounts and access credit facilities.