Contrasting Levels of Financial Capability in India – An Exploratory Study

It is a known fact that the engines of development of a nation largely depend upon the people use money and how they optimize the use of money. Perhaps the level of progress can be gauged from the levels of financially capable behavior exhibited by the individuals.

The financial capability is in turn an output of various parameters. Each of the parameters may vary across socioeconomic profile and across nations. The term financial capability can be used interchangeably with financial literacy in many nations. In any case, it is definitely an important predictor of the intensity with which financial inclusion can succeed in a nation. The levels of financial capability precede the onset of financial inclusion and play an instrumental role in speed up the macroeconomic growth. This research paper is an effort to derive a framework for financial capability in Indian context. It also attempts to find the levels of each of the components across socioeconomic profile.