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Financial Inclusion is the ability of individuals to access appropriate financial products and services. It is the delivery of financial services at affordable costs to sections of disadvantaged and low-income segments of society like farmers, daily labourers etc. But is financial inclusion alone enough to sustain the individuals to make sound financial decisions. Do they possess adequate financial literacy and knowledge? In the light of financial inclusion, is there still a chance to commit mistakes on the ground of financial fronts? So the question arises, is financial inclusion feasible without the presence of financial literacy? The present study examines the level of financial literacy among farmers of Lunglei district. A survey of 320 farmers all over the district of Lunglei had been conducted. This survey shows that farmers were financially illiterate: as 86.56% have poor financial literacy, 9.38% have fair financial literacy and only 4.06% have sound financial literacy.
Key Words : Financial Inclusion, Financial Literacy, Lunglei, Fanners
Financial Inclusion is the ability of individuals to access appropriate financial products and services. It is the delivery of financial services at affordable costs to sections of disadvantaged and low-income segments of society like farmers, daily labourers etc.
Rangarajan's committee on financial inclusion defines it as:
"Financial inclusion may be defined as the process of ensuring access to financial services and timelyand adequate credit where needed by vulnerable groups such as weaker sections and low incomegroups at an affordable cost. "
The United Nations (2006) defines it as, "A financial sector that provides 'access' to credit for all 'bankable' people and firms, to insurance for all insurable people and firms and to savings and payment services for everyone. Inclusive finance does not require that everyone who is eligible should use each of the services, but they should be able to choose to use them if desired. "
Thus, financial inclusion is a provision of broad range of financial services such as deposits, loans, payment services, money transfers and insurance to vulnerable groups such as poor and low-income households and their micro-enterprises. By providing these services, the aim is to help the vulnerable groups to come out of poverty through rapid and sustained poverty reduction.
RBI and Government of India have been actively pursuing the...