Responsible Finance Forum

Financial Awareness Scoping Initiative

01 August 2012
Source:  Micro‐Credit Ratings International Limited

In recent years, practitioners as well as policy makers have realized that financial literacy is akey dimension of financial inclusion. Extensive efforts at increasing the supply of financialservices often do not yield adequate results due to a lack of financial knowledge amongstthe population. Dr D Subbarao, Governor of the Reserve Bank of India, has drawn attentionto the key role of financial literacy in promoting inclusion by observing

“Financial literacy and awareness are integral to ensuring financial inclusion. This is not just about imparting financial knowledge and information; it is also about changing behaviour. The ultimate goal is to empower people to take actions that are in their own self interest.When consumers know of the financial products available, when they are able to evaluate the merits and demerits of each product, are able to negotiate what they want, they will feel empowered in a very meaningful way.”1[Dr.Subbarao.D, 2010]