Financial Literacy and Education in Enhancing Financial Inclusion

The current economic condition of the country is one of the serious concerns to the nation. India is the country with the nearest to 15% of the poor population. UN-initiated Sustainable Development Goals have prioritized reduction of poverty as the foremost goal, which serves as a global imperative for reshaping the world, urging us to eradicate poverty and disparities, safeguard the environment, and guarantee that every individual can access well-being, justice, and prosperity, leaving no one marginalized. SDG 1 focuses on no poverty in the nation. To achieve this goal, the Government of India initiated the “PM Jan Dhan Yojana” which highlights financial literacy. This chapter explores the implication of the PMJDY scheme on financial inclusion and enhancing the ecosystem for involving the unserved segment of the country in the formal banking system and its performance over the years, resulting in creating financial awareness leading to financial inclusion. The chapter also discusses the past trends, current scenario, and future prospects related to financial literacy and financial inclusion.