Measurement of Financial Literacy for Financial Inclusion among Urban Slum Residents

Abstract

India, requires capital formation through saving and investment tha t needs proper planned, promoted and channeled investment pattern among inhabitants. However, vulnerable groups, weaker section, lowincome groups continue to remain excluded from even the most basic financial services. Financial literacy is a prerequisite for financial inclusion.The study covers of 600 urban slum households selected using stratified random sampling method to measure financial literacy among urban slum residents. The structured interview schedule was used to collect primary data and its conten t validity was verified by panel of experts. The Cronbach Alpha method of reliability tested. Annamaria Lusardi's financial literacy instrument has been adapted to measure financial literacy. Chi-square and Logit regression model were employed for data analysis. Financial Inclusion is found to be a requisite for sustainable growth and development.