Financial Literacy Models and

Status of Financial Literacy in India

Purushottam Bhandare
MM2015MLS010

1
Research Guide
Prof. Samapti Guha

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2 Brief Introduction

Financial Literacy

Study aims at exploring existing financial literacy

models.

Formal Model (Bank-led)

Semi-formal Model
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3 Research Objectives

 To understand existing financial literacy models in India

 To analyze the importance of different components in existing

financial literacy models

 To understand the process of delivery of these models

 To analyze the status of financial literacy among the people in

the areas where these financial literacy models are delivered.
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 Methodology
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 Universe of the Study: The study is aimed to cover two representative
institutes of the financial literacy models,
 Formal (Bank-led)
 Semi-formal (MFI)
The undergoing study is conducted in and around the city of Mumbai.

 Units of analysis
 participant and beneficiaries of the financial literacy programs
 The institutions which have delivered the financial literacy programs

 Sampling
 Simple Random Sampling
 Sample Size: 150 each for both the models
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5 Methodology continued..
 Data Collection Tools
 Semi-Structured Interviews
With the Institute officials involved in financial literacy interventions
 Survey Questionnaire
Questionnaire to acquire data about demographic, socio-economic
characteristics and financial profile of the respondents
Likert Scale for financial behavior

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6 Data Collection Approach
Formal Model

Nodal Agencies RBI & NABARD

Bank of Maharashtra
SLBC

Lead District Bank BoM (Thane District)

FLCC Thane FLC

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7 Tools Construction
 Literature
 Huston, S. J. (2010). Measuring Financial Literacy. Journal of Consumer Affairs,
44(2), 296–316. http://doi.org/10.1111/j.1745-6606.2010.01170.x
 Kempson, E. (2009). Framework for the Development of Financial Literacy
Baseline Surveys: A First International Comparative Analysis. OECD Working
Papers on Finance, Insurance and Private Pensions, (1), 32.
http://doi.org/10.1787/5kmddpz7m9zq-en
 NISM. (2014). Financial Literacy and Inclusion in India: Final Report - India.
Mumbai.
 OECD. (2015). 2015 OECD/INFE Toolkit For Measuring Financial Literacy and
Financial Inclusion, (March).
 Schuhen, M., & Schürkmann, S. (2014). Construct Validity of Financial Literacy.
International Review of Economics Education, 16(PA), 1–11.
http://doi.org/10.1016/j.iree.2014.07.004
 Watson, T. (2014). Financial Wellbeing Questionnaire – Design and Validation.
Austrelian Unity, (July).

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8 Tools Interview Schedule

RBI, NABARD and SLBC

Checklist/Questions for Interview

Formal Model 1. Genesis of Financial Inclusion Department

Interview Schedule a. When/Why it started?

2. What is Financial Inclusion for NABARD

Survey Questionnaire a. Credit Linkage

b. Access/Availability/Usage
3. Process
a. Mentors/Trainers
Semi-formal Model b. Beneficiaries
c. Content Writers for Financial Literacy
Interview Schedule 4. Stakeholder Map
a. Partner Agencies for Implementation
Survey Questionnaire b. Practitioners
5. Roles and Responsibilities
6. Financial Literacy Programs
a. Pedagogy/Process
b. Follow up
c. Nature of follow up 6/14/2019
 Tools
Questions for FLC/ MFI

Checklist/Questions for Interview

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1. Genesis of FLC
2. Organization Structure
3. Job Description
4. Target Audience
5. Call for program/ Program announcement
6. Schedule for program
7. Pedagogy/Process of counselling
8. Tools- Standard/Technology based
9. Participation
10. Challenges in implementation
11. Opinion about SLBC/ Policy of Financial literacy and financial inclusion
12. Response
a. How participants react to program throughout?
b. How the response from participants are recorded?
13. Evaluation
a. How these programs are evaluated?
14. Support/Follow up
a. How participants get post-program support in financial literacy?
b. How the follow up is taken with all participants?
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15. Improvement/Changes
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11

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12
• Based on Financial
Literacy Scale
developed by
OECD/INFE

• Cronbach’s Alpha 0.89

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13 Data Analysis Techniques
 Regression Technique
 Logistic Regression

 Factor Analysis

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14

Thank you.!