ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
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Unbundling the Nexus

Financial Literacy and Financial Inclusion

Using district-level data, the effect of financial literacy centres on financial inclusion in India is investigated. There is evidence of an improvement in the use of bank accounts over time. Robustness tests suggest that banks with a strong capital position and asset quality are more inclusive through their financial literacy centres, and the traditional bank agents continue playing an important role in this process despite non-traditional channels like mobile telephony. Yet, the findings show that the overall impact of financial literacy on bank account ownership is still limited. The analysis raises useful policy pointers to address those impediments that plague the process.



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Updated On : 29th Mar, 2019

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