FINANCIAL LITERACY & INCLUSION SURVEY FOR

FINANCIALLY AWARE AND EMPOWRED INDIA




A Summer Project Proposal for

Post-Graduate Diploma in Management

BY
Ayon Modak






Under the guidance of: Submitted by:
Prof. (Dr.) D. Das Ayon Modak
IBA- Greater Noida Roll No- FPG13-15/011






1 ACKNOWLEDGEMENT

The present report is an amalgamation of hard work and contribution of experience of eminent
personalities. The project could not have been completed without the guidance of Mr. Khushrow
Chinoy who not only served as my supervisor and mentor but also encouraged me throughout
my training program. He patiently guided me throughout and never accepting less than my best
effort and I also like to thanks Mr. Brijesh Chawla who also guided me throughout the training
programme.

Here, I would like to express my greatest appreciation to all employees of Mott Macdonald for
providing me their continued support and guidance in the completion of this project.



2 DECLARATION

I,Ayon Modak hereby declare that the project titled, “ Financial Literacy & Inclusion Survey”
was successfully completed by me under the supervision and guidance of Dr. Debarata Das,
Indus Business Academy (IBA), Greater Noida in Partial fulfilment of the requirement for the
award of degree of Post Graduate Diploma in Management (PGDM ).

I also commit that the data presented and work done are original and not published and presented
elsewhere and the work carried out by me under the guidance of industry experts.


Ayon Modak
FPG 13-15/011
Indus Business Academy
PGDM 2013 Batch




3 TABLE OF CONTENTS
FINANCIAL LITERACY & INCLUSION SURVEY FOR FINANCIALLY AWARE AND EMPOWRED INDIA ........... 1
1 ACKNOWLEDGEMENT ........................................................................................................................... 1
2 Declaration ............................................................................................................................................ 3
4 Executive Summary ............................................................................................................................... 6
5 abbreviations ........................................................................................................................................ 8
6 Introduction .......................................................................................................................................... 9
7 Vision, Mission, Goals, Strategic Action Plan and Stakeholders ......................................................... 11
8 Institutional structure ......................................................................................................................... 13
....................................................................................................................... Error! Bookmark not defined.
....................................................................................................................... Error! Bookmark not defined.
9 Financial literacy & Inclusion survey ................................................................................................... 14
9.1 World wide .................................................................................................................................. 14
9.2 In India ........................................................................................................................................ 15
10 Policy envoirment ........................................................................................................................... 16
11 components of financial education ................................................................................................ 17
11.1 financial inclusion in India .............................................................. Error! Bookmark not defined.
12 survey in Bardhhaman west Bengal ................................................................................................ 20
13 Financial Inclusion is a Driver of Economic Growth and Poverty Alleviation: ................................ 21
14 Need for financial literacy ............................................................................................................... 22
15 financial literacy initiatives by rbi ................................................................................................... 23
16 PROFILE OF MOTT MACDONAD ...................................................................................................... 25
16.1.1 INTRODUCING MOTT MACDONALD ................................................................................... 25
17 Projects of Mott Mac Donald .......................................................................................................... 28
17.1 Girls' Education, South Sudan ..................................................................................................... 28
17.2 Blue Gold Program, Bangladesh ................................................................................................. 29
17.3 Cayman Islands Airports ............................................................................................................. 31
17.3.1 CORPORATE MISSION ......................................................................................................... 34
17.3.2 VISION ................................................................................................................................. 34
17.3.3 MARKETING AND SERVICES ................................................................................................ 34
17.3.4 Chemicals and petrochemicals ........................................................................................... 35
17.3.5 Building materials ............................................................................................................... 35
17.3.6 Agribusiness ........................................................................................................................ 36
17.3.7 Tourism and hospitality ...................................................................................................... 36
17.3.8 Textiles ................................................................................................................................ 36
17.3.9 Metals and minerals ............................................................................................................ 36
17.4 HUMAN RESOURCE ..................................................................................................................... 37
17.5 TECHNOLOGY & COMMUNICATIONS ......................................................................................... 37
17.6 AWARDS & RECOGNISATION ...................................................................................................... 38
17.7 CORPORATE SOCIAL RESPONSIBLITIES ....................................................................................... 39
Corporate responsibility led from the top .................................................................................................. 39
18 INTRODUCTION OF THE STUDY ....................................................................................................... 40
19 Objective of the study ..................................................................................................................... 42
20 data collection ................................................................................................................................. 43
21 Analysis ........................................................................................................................................... 44
22 RECOMMENDATIONS & ACTION PLAN ........................................................................................... 53
23 Major findings ................................................................................................................................. 53
24 LIMITATIONS OF THE STUDY ........................................................................................................... 54
25 Conclusion ....................................................................................................................................... 55
26 References ...................................................................................................................................... 56









4 EXECUTIVE SUMMARY
In a growing number of country like India, the long-term implications of low levels of financial
literacy among the majority of the population are prompting governments to take action.
Improved access to basic financial products – including bank accounts, credit and saving
products – for a rising middle class in emerging economies, the increasing sophistication of the
financial landscape and products while public and occupational welfare benefits are shrinking in
most developed countries have shed light on the importance of consumers‟ financial decisions.
Nevertheless, consumers around the country and in particular vulnerable groups display limited
knowledge and understanding of financial products and concepts. They also have difficulty
making long-term informed financial decisions and selecting financial products that match their
needs. This may have negative consequences not only on individuals‟ and households‟ future
financial well-being, but also on the long-term stability of financial and economic systems. To
respond to these concerns and support consumers‟ financial empowerment, governments and
relevant stakeholders in many countries have established financial education initiatives as a
complement to financial consumer protection and regulatory reforms, as well as policies aimed at
reinforcing financial access.
Financial Literacy refers to the possession of knowledge and understanding of financial
matters. Financial literacy is mainly used in connection with personal finance matters. Financial
literacy often entails the knowledge of properly making decisions pertaining to certain personal
finance areas like real estate, insurance, investing, saving (especially for college), tax planning
and retirement. It also involves intimate knowledge of financial concepts like compound interest,
financial planning, the mechanics of a credit card, advantageous savings methods, consumer
rights, time value of money, etc.
A financially literate person will have some basic knowledge of key financial concepts. The
Core Questionnaire therefore includes 8 questions to test levels of knowledge in each10. The
questions have been chosen to cover a range of financial topics and to vary in difficulty, although
none of them is excessively complex and none of them requires expert knowledge
Financial inclusion may be defined as the process of ensuring access to financial services and
timely and adequate credit where needed by vulnerable groups such as weaker sections and low
income groups at an affordable cost. Financial inclusion broadens the resource base of the
financial system by developing a culture of savings among large segment of rural population and
plays its own role in the process of economic development. Further, by bringing low income
groups within the perimeter of formal banking sector; financial inclusion protects their financial
wealth and other resources in exigent circumstances. Financial inclusion also mitigates the
exploitation of vulnerable sections by the usurious money lenders by facilitating easy access to
formal credit.
Financial behaviour The way in which a person behaves will have a significant impact on their
financial wellbeing. It is therefore important to capture evidence of behaviour within a financial
literacy measure. The Core Questionnaire does this by asking a variety of questions in different
styles, to find out about behaviours such as thinking before making a purchase, paying bills on
time and budgeting, saving and borrowing to make ends meet.

Financial Attitudes and preferences are considered to be an important element of financial
literacy. If people have a rather negative attitude towards saving for their future, for example, it
is argued that they will be less inclined to undertake such behavior. Similarly, if they prefer to
prioritize short-term wants then they are unlikely to provide themselves with emergency savings
or to make longer term financial plans. The Core Questionnaire includes three attitude
statements to gauge respondents‟ attitudes towards money and planning for the future11. The
attitude questions ask people about whether they agree or disagree with particular statements, to
capture their disposition or preferences.

5 ABBREVIATIONS

KYC- know your customer
RTGS - Real Time Gross Settlement
NEFT- National Electronic Funds Transfer
ECS - Electronic Clearing Service
NSC – National Savings Certificate
DBT – Direct benefit transfer
OECD - Organization for Economic Co-operation and Development
SGH – Self Help Groups


6 INTRODUCTION
This study covering approximately 75000 people across 35 states and UTs, would not only
assess the present state of financial literacy and financial inclusion, but also yield benchmarks of
core financial literacy and financial inclusion indicators at various socio-economic sub group
levels and measure its rate of change on a continual basis to assess the efficacy of various
financial education interventions including those under NCFE. This study would also provide
comparative analysis of states/ UTs and help evaluate India‟s standing at global level.
This study is very important for the purpose of research to understand and improve delivery of
financial education which in turn will lead to a higher level of financial literacy and financial
inclusion in India.
These are tumultuous and exciting times for microfinance, marked equally by the stunning
potential of the cell phone to change the face of financial services and disturbing reports of
suicides linked to over-indebtedness. Against this backdrop, a shift in the industry is taking
place, drawing our attention from the financial institution back to the client. Indicators of a
renewed concern for clients include research to quantify the „unbanked‟, rallying calls for
consumer protection, and efforts to better meet customer needs with diversified products. A key
driver of this change in focus is the now widely embraced goal of „financial inclusion‟.
Governments of developed economies, in G20 Summit agreements, have recognized financial
inclusion and consumer protection as integral to achieving financial stability and integrity.
Financial access has been highlighted as a „key accelerator‟ to meet the Millennium
Development Goals. Key to attaining this laudable goal is financial education (World Savings
Bank Institute, 2010).

Financial inclusion is a multi-dimensional, pro-client concept, encompassing better access, better
products and services, and better use. Herein lies its challenge – without the third element, use,
the first two are not worth much. Technological innovations are bringing both new customers,
potentially including millions of unbanked cell phone owners, and new service providers –a
diverse array of retail outlets, telcoms and others – into the market. Diversification of products
and services has already resulted in rich, and complex, choices for consumers, especially
compared to the early days of one-size-fitsall working capital loans. Yet, increased access and
better choices do not automatically translate into effective use. The path from uptake (i.e.
opening an account) to usage is still an uncharted course. Effective use is hampered by
asymmetries of information and power between financial institutions and poor consumers, an
imbalance which grows as customers are less experienced and the products they can choose are
more sophisticated, an imbalance which holds real potential for negative outcomes due to
institutional abuses or ill informed client decisions.

Financial education is an important tool to address this imbalance and help consumers both
accept and use the products to which they increasingly have access. Because it can facilitate
effective product use, financial education is critical to financial inclusion. It can help clients to
both to develop the skills to compare and select the best products for their needs and empower
them to exercise their rights and responsibilities in the consumer protection equation. Properly
designed, financial education is tailored to the client‟s specific context, helping them to
understand how financial instruments, formal or informal, can address their daily financial
concerns, from the vagaries of daily cash flow to risk management. Its power lies in its potential
to be relevant to anyone and everyone, from the person who contemplates moving savings from
under the mattress to a community savings group, to the saver who tries to compare account
choices offered by competing banks. As such it spans the informal and formal financial sectors,
supporting clients‟ access to, and more importantly, use of, diverse financial services.
Current developments in microfinance are both exciting and potentially perilous. To take
advantage of the former and protect against the latter, those placing the client at the center of
their efforts are embracing financial education. This paper will situate financial education in an
evolving financial landscape, identify its stakeholders, and most importantly, summarize
experience to date and explore how that experience is shaping the vision and agenda for its
future.


7 VISION, MISSION, GOALS, STRATEGIC ACTION PLAN AND
STAKEHOLDERS
Vision - A financially aware and empowered India
The vision entails provision of financial education for all Indians that could enable individuals, at
their level of need, to understand the role of money in their life, the need and use of savings, the
advantages of using the formal financial sector and various options to convert their savings into
investments, protection through insurance and a realistic recognition of the attributes of these
options.
2. Mission- To undertake massive Financial Education campaign to help people manage money
more effectively to achieve financial well being by accessing appropriate financial products and
services through regulated entities with fair and transparent machinery for consumer protection
and grievance redressal.
To conduct financial education campaign across the country for all sections of the population
along with awareness campaigns at different levels for existing and potential customers so as to
improve the knowledge, understanding, skills and competence of theirs in managing money
effectively to improve his/her financial status by taking informed decision.
The mission will be accomplished through provision of financial education throughout the life
cycle of an individual starting from the school level. The endeavour is to ensure well being of
individuals through financial inclusion.
3. Goals- National Strategy for Financial Education has been prepared with the following
objectives
a) Create awareness and educate consumers on access to financial services, availability of
various types of products and their features.
b) Change attitudes to translate knowledge into behaviour.
c) Make consumers understand their rights and responsibilities as clients of financial services.
4. Action Plan with Timeframe- Given the fast pace of changes in the financial world, it will be
reasonable to have a five year timeframe for implementation of the strategy. The above mission
will be accomplished only through Strategic Action Plan to be executed in the five year period.
a) To set up the structure as envisaged in this document
b) To incorporate basic financial education in school curricula up to senior secondary level
c) Create awareness about consumer protection and grievances redressal machinery available in
the country
d) The Financial Education to be delivered by trained persons in a format suitable to each target
group with the content that has been developed by rigorous research
e) All the above measures would be undertaken through various stakeholders including NGOs,
civil society and by using all channels of mass communication
f) To establish initial contact with 500 million adults, educating them on key saving, protection
and investment related products so that they are empowered to take prudent financial decisions
5. Stake-holders- The strategy recognizes the following stakeholders. The list is indicative, not
exhaustive.
a) Financial Consumers-Individuals resident in India
b) Financial Market players-Financial Institutions that act as savings aggregators viz. banks, non
banking financial companies, mutual funds, pension funds, insurance companies etc and
Financial Institutions that act as intermediaries such as brokers, merchant bankers, registrars,
depositories, exchanges, insurance brokers, corporate agents etc.
c) Educational Institutions
d) Non Governmental Organizations
e) Financial Sector Regulators
8 INSTITUTIONAL STRUCTURE




GDTable-1: Key Statistics on Financial Inclusion in India (in comparison with world): A Survey


C



Share with an account at a
formal financial institution
Adults saving
in the past year
Adults originating
a new loan in the
past
year
Adults
with a
credit
card
Adults with
an
outstanding
mortgage
Adults
paying
personally
for health
insurance
Adults
using
mobile
money
in the
past
year
All
adults
Poorest
income
quintile
Women Using a
formal
account
Using a
Community
based
method
From a
formal
financial
institution
From
family
or
friends
1 2 3 4 5 6 7 8 9 10 11 12
India 35 21 26 12 3 8 20 2 2 7 4
World 50 38 47 22 5 9 23 15 7 17 7

Source: Asli Demirguc - Kunt and Klapper, L. (2012): ‘Measuring Financial Inclusion’, Policy Research
Working Paper, 6025, World Bank, April.

9 FINANCIAL LITERACY & INCLUSION SURVEY
9.1 WORLD WIDE

An international OECD study was published in late 2005 analysing financial literacy
surveys in OECD countries. A selection of findings included:
• In Australia, 67 % of respondents indicated that they understood the concept of
compound interest, yet when they were asked to solve a problem using the
concept; only 28 % had a good level of understanding.
• A British survey found that consumers do not actively seek out financial
information. The information they do receive is acquired by chance, for
example, by picking up a pamphlet at a bank or having a chance talk with a
bank employee.
• A Canadian survey found that respondents considered choosing the right
investments to be more stressful than going to the dentist.
• A survey of Korean high-school students showed that they had failing scores -
that is, they answered fewer than 60 % of the questions correctly - on tests
designed to measure their ability to choose and manage a credit card, their
knowledge about saving and investing for retirement, and their awareness of
risk and the importance of insuring against it.
• A survey in the US found that four out of ten American workers are not saving
for retirement.
“Yet it is encouraging that the few financial education programmes which have been
evaluated have been found to be reasonably effective. Additionally, a growing number
of financial literacy researchers are raising questions about the political character of
financial literacy education, arguing that it justifies the shifting of greater financial risk
(e.g. tuition fees, pensions, health care costs, etc.) to individuals from corporations and
governments
.

9.2 IN INDIA

In India, people across generations have been in the habit of saving conventionally or
un-conventionally; in cash or in kind. The preferred saving products for centuries have
been gold and land.
However, a conscious effort of financial inclusion, though through informal approaches
have started since 1950, real momentum started gathering since 2005 onwards with
Reserve Bank of India giving directions and guidelines supported by organisations such
as NABARD and commercial banks the financial literacy efforts have started.

The Table on Progress of Scheduled Commercial Banks In financial Inclusion Plan
gives a picture of better penetration through the Business Correspondent model and
reaches through ICT modes.

10 POLICY ENVOIRMENT
For centuries, India has been a “saving” country-in cash or in kind. However, these
savings might not have necessarily been in any formal manner. It could have been in
the household “hundis” (Piggy Banks) or in jewelry or in property or in equity or other
movable or immovable assets. Despite this attitude to save, over a period of time, India
also started witnessing financial exclusion in its masses and as the country was passing
through several bouts of economic and social turbulence, the exclusivity widened. To
ensure the inclusion of the excluded, the successive governments took several measures
and continue to do so. Here are some of the actions taken in this regard
7
.
10.1.1.1.1 GDTable-2 Financial Inclusion Measures by Government of India
Period Process Phase Steps Taken
1950-1970 Consolidation of Banking Sector and
facilitation of Industry and Trade
- Co-operative Movement
- Setting up of State Bank of India
- Nationalisation of Banks
- Lead Bank Scheme
- Regional Rural Banks
- Service Area Approach
- Self Help Groups
- BCs& BFs concept
- -
1970-1990 Focus of Channelling of Credit to
neglected sectors and weaker section

1990-2005 Focus on strengthening the financial
institutions as part of financial sector
reforms

From 2005 Financial Inclusion was explicitly made as
a policy objective


The above table reflects an understanding and congenial policy environment in the
country towards a steady financial inclusion.As the financial literacy need was being
felt strongly towards a financial inclusion, empowerment and protection, several
agencies started working together towards this goal


11 COMPONENTS OF FINANCIAL EDUCATION
The first decade of the twenty-first century has seen a universal recognition for spreading
financial literacy among people. The concept of improving financial literacy as a national project
has been gradually building. Most of the countries are adopting a unified and coordinated
national strategy for financial education. Given the fact that India is having large population, a
fast growing economy with national focus on inclusive growth and an urgent need to develop a
vibrant and stable financial system, it is all the more necessary to quickly formulate and
implement a national strategy. Also since a large number of stakeholders including the central
and state governments, financial regulators, financial institutions, civil society, educationists and
others are involved in spreading financial literacy; a broad national strategy is a prerequisite to
ensure that they work in tandem according to the strategy and not at cross purposes. The
formulation and implementation of National Strategy for Financial Education will reap rich
benefits to the country and can be attributed to following reasons:
a) Inclusive Growth, Financial Inclusion & Financial Education: Financial education play a
vital role in making demand side respond to the initiatives of the supply side interventions.
Financial inclusion is one of the top most policy priorities of the Government of India. One of
the most visible aspects of the governance has been agenda of social inclusion of which financial
inclusion is an integral part. „Financial literacy, and education, plays a crucial role in financial
inclusion, inclusive growth and sustainable prosperity‟
b) Knowledge and skill: Increasing range and complexity of products has made it very difficult
for an ordinary person to take an informed decision. Financial literacy develops confidence,
knowledge and skills to manage financial products and services enabling them to have more
control of their present and future circumstances
c) Freedom from exploitation: Financial literacy will help in protecting society and individuals
against exploitative financial schemes and exorbitant interest rate charged by moneylenders.
d) Avoidance of over indebtedness: Financial education will help to avoid over-indebtedness,
improve quality of services and make wise financial decisions.
e) Promoting entrepreneurship: Small entrepreneurs who would be educated and already have
a business sense will benefit through awareness about new financial products and help them to
understand the dynamics of market mechanism and improve their business dealings.
f) Positive Spill-over effects: Financial education can lead to multiplier effects in the economy.
A well educated household would resort to regular savings, which in turn would lead to
investment in right channels and income generation. The financial wellbeing of individuals will
in turn increase the welfare of the society.
g) Shifting of Pension Responsibility from State / Corporations to Individuals: A financially
educated person would be in a better position to assess his/her own requirements and make
savings in appropriate schemes. It reduces strain on social programs and pension plans, and
fosters an economy that is more resilient.
h) Behavioral Change: The proliferation of financial products has led to its indiscriminate
usage without realizing its financial implications by the user.‟ In fact, the recent global financial
crisis has raised the question whether individuals‟ lack of financial knowledge led them to take
out adjustable rate mortgages or incur credit card debt they could not afford. Financial Education
can become an agent of behavioral change.
i) Deeper participation in Financial Markets: In India, we need to convert savers into
investors. More participation of domestic retail investors in securities market will give dividends
by Increasing depth of securities market, reducing dependence on foreign investors and domestic
savers reaping benefits of Corporate Growth and reducing strain on Government Treasury for
investment in National Infrastructure.






12 FINANCIAL INCLUSION IN INDIA




















Areas of financial inclusion in India. The map clearly showing which districts and places have
the highest concentration of financial inclusion actors.


13 SURVEY IN BARDHHAMAN WEST BENGAL



14 FINANCIAL INCLUSION IS A DRIVER OF ECONOMIC GROWTH AND
POVERTY ALLEVIATION:
Inclusive financial sector development makes two complementary contributions to poverty
alleviation; firstly financial sector development is a driver of economic growth which indirectly
reduces the poverty and inequality. Secondly an appropriate, affordable, financial service for
poor people can improve their welfare. They are complementary because financial inclusion
enables the previously excluded to connect to the formal economy and contribute to economic
growth, while economic growth facilitates the inclusion of more people in the economy and in
the financial system.
A crucial problem for poor people is that their flow of income is volatile, for farmers and others
seasonal occupations, variations over a year can be greater. Poor people need to be able to
manage this low, irregular and unreliable income to ensure regular cash flow and to accumulate
sufficient amounts to cover lump sum payments. Lump sums are needed for: lifecycle events
such as school expenses, marriages and funerals; economic opportunities e.g., buying inputs for
businesses; and emergencies like illness or sudden unemployment.
For them money management is very crucial, however they lack in it. Poor people, like most
people, need a range of appropriate and affordable financial services to address a range of
financial needs, such as safe accessible savings, micro credit, and insurance. However in the
absence of formal and semi-formal financial services, poor people use informal services.
If we consider our own banking (Indian) eco-system, it has about 95,000 branches, about equal
number of ATMs across the country and 278 million debit cards. Yet a large proportion of our
population remains financially excluded. Data indicates that only about 40 percent of the adult
population in the country has a bank account; only 25,000 plus villages have a bank branch out
of the 600,000 villages in the country. Only 13 percent of the people have a debit card and only
two percent have a credit card. The same low level of penetration is seen for both life and non-
life insurance products (H.R.Khan, 2012). As the Indian financial system is pre-dominantly led
by banks, the financial inclusion policy orientation has naturally been biased towards the bank-
led model. The non-bank entities, however, play an important role in providing necessary
support to expand the reach particularly for the banks, crossing the proverbial last mile.

NEED FOR FINANCIAL LITERACY
Financial literacy has assumed greater importance in the recent years, as financial markets have
become increasingly complex and as there is information asymmetry between markets and the
common person, leading to the latter finding it increasingly difficult to make informed choices.
Financial literacy is considered an important adjunct for promoting financial inclusion and
ultimately financial stability. Both developed and developing countries, therefore, are focusing
on programmes for financial literacy/education. In India, the need for financial literacy is even
greater considering the low levels of literacy and the large section of the population, which still
remains out of the formal financial set-up. In the context of 'financial inclusion', the scope of
financial literacy is relatively broader and it acquires greater significance since it could be an
important factor in the very access of such excluded groups to finance. Further, the process of
educating may invariably involve addressing deep entrenched behavioural and psychological
factors that could be major barriers. In countries with diverse social and economic profile like
India, financial literacy is particularly relevant for people who are resource-poor and who operate
at the margin and are vulnerable to persistent downward financial pressures. With no established
banking relationship, the un-banked poor are pushed towards expensive alternatives. The
challenges of household cash management under difficult circumstances with few resources to
fall back on, could be accentuated by the lack of skills or knowledge to make well informed
financial decisions. Financial literacy can help them prepare ahead of time for life cycle needs
and deal with unexpected emergencies without assuming unnecessary debt.
The OECD has brought out 'Recommendations on Principles and Good Practices for Financial
Education and Awareness. These recommendations are intended to help countries, both
developed and developing, in designing and implementing effective financial education
programmes.
15 FINANCIAL LITERACY INITIATIVES BY RBI
Under the recent financial literacy drive in 2007 by the Reserve Bank of India, the
concept of financial education and awareness has taken a whole new dimension. Their
project titled "Project Financial Literacy" gives directives on disseminating information
regarding the central bank and general banking concepts to various target groups, such
as, school and college going children, women, rural and urban poor, defense personnel
and senior citizens.
a) Facilitating Policy Stance
- The annual policy statement for the year 2005-06 indicated that the Bank would
implement policies to encourage banks which provide extensive services, while dis-
incentivizing those that are not responsive to the banking needs of the community,
including the underprivileged.
- Banks were urged to review their existing practices to align them with the objective of
financial inclusion.
- No-Frills Accounts
- Overdraft in Saving Bank Accounts
- Relaxed KYC norms
b) Business Correspondent / Business Facilitator Model
- From January 2006, banks were permitted to utilise the services of intermediaries in
providing financial and banking services through the use of business correspondent
and business facilitator models.
- A Working Group constituted to examine the experience of date of the BC model and
suggest measures, to enlarge the category of persons that can act as BCs, keeping in
view the regulatory and supervisory framework and consumer protection issues :
- Kisan Credit Cards (KCC) / General Credit Cards (GCC) Guidelines
- Liberalised Branch Expansion
- Introducing technology products and services
- Pre-paid Cards, Mobile Banking etc.
- Allowing Regional Rural Banks (RRBs) / Co-operative Banks to sell Insurance and
Financial Products
- (Moving towards) 100% Financial Inclusion





16 PROFILE OF MOTT MACDONAD

16.1.1 INTRODUCING MOTT MACDONALD
The Mott MacDonald Group is an employee-owned multidisciplinary consultancy with
headquarters in the United Kingdom. It provides engineering and development consultancy
internationally for both the public and private sectors. It employs 16,000 staff in 140
countries and is known as one of the largest employee-owned companies in the world.
Mott MacDonald is a global management, engineering and development consultancy adding
value for public and private clients on agenda-setting, next-generation projects worldwide. The
company uses ingenuity to save customers money and time, reduce risks, increase efficiency,
maximize sustainable outcomes and advance best practice
Mott MacDonald has been appointed by The National Centre for Financial Education
(NCFE) to carry out the NCFE – Financial Literacy and Inclusion Survey in India. The study
will assess the state of financial literacy and inclusion across the country.
As part of this study, Mott MacDonald is meeting approximately 75,000 people across 35 states
and Union territories. Results of the study will yield benchmarks of core financial literacy and
financial inclusion indicators for different socio-economic sub-groups and measure the efficiency
of various financial education interventions, including those under the NCFE.
The consultancy is playing a major role in facilitating design of the questionnaire, implementing
and administering baseline data collection and extracting collected data in accordance with a
scientifically proven sampling methodology.




Mott Mac Donald in India
For over 43 years, Mott MacDonald has been at the forefront of management, engineering and
development consultancy in India. With 1400 staff in nine offices they are contributing to a wide
range of development projects in markets including transport, industry, water, buildings, energy,
environment, health and education, communications, urban infrastructure and institutional
development. The various sectors where Mott Mac Donald has its presence-
Transport
Mott is helping shape much of India‟s transport infrastructure from airports and metros to ports
and transport planning. They have been providing comprehensive multidisciplinary planning and
design engineering on the high profile Delhi Metro project for over a decade. On the strength of
the work in Delhi they are designing and supervising construction of new metros in Bangalore,
Chennai, Gurgaon, and Hyderabad, Jaipur and Kolkata and acting as safety advisor on Mumbai
Metro.
For Indira Gandhi International Airport at Delhi we provided design and master planning for a
new runway and terminal building - completed in just 50 months. Following this we designed an
80m tall reinforced soil wall, the world‟s highest, to enable construction of Payong Airport at
Sikkim in the Himalayas.
As programme manager for the Indian Ministry of Urban Development‟s Sustainable Urban
Transportation Project, they are working to change travelling behaviour and temper the rise of
private transport. Meanwhile in the ports sector, they provide detailed design, tender and contract
documents, project management for the coal berth development at Vishakhapatnam port.
Industry
In the industry sector Mott clients include some of the world‟s largest corporations including
Glenmark, AstraZeneca, Bunge, Laxness and Shell. Projects on which they are providing
engineering and project management span the pharmaceuticals and biotechnology, textiles,
chemicals, rubber, metals, food, automotive and petrochemicals sectors.
For a major rubber chemicals facility in Gujarat Mott is the designer for the new facility which
reused several items of high value equipment from a previous site in Mumbai. We identified
more items to reuse than originally planned, saving INR45 million.
Health
The government‟s RMSA programme aims to enhance access to secondary education and
improve its quality, which will impact 100 million children. Mott education specialists are
helping to accelerate the programme in the neediest states and for the most disadvantaged
children. This work follows on from our support to the Indian government to identify strengths
and weaknesses in the primary school system. Mott trained staff from the National Council of
Educational Research and Training and state institutions to use internationally recognized
assessment techniques and advanced evaluation methodologies.

Mott is also managing a four-and-a-half year project to improve the quality and relevance of
training provision and increase skilled labor in India. By developing a national qualifications
framework and enhancing the labor market analysis processes, India will be better able to predict
future skills requirements and make 500 million people employable and productive by 2022.
Education
Working with the Indian government, Mott Mac Donald education specialists are helping to
identify strengths and weaknesses in the school system to improve education for 200 million
children. They are training staff from the National Council of Educational Research and Training
and state institutions to use internationally recognised assessment techniques and advanced
evaluation methodologies. This is the first time these methods are being used in India.

Mott is also managing a four-and-a-half year project to improve the quality and relevance of
training provision and increase skilled labor in India. By developing a national qualifications
framework and enhancing the labor market analysis processes, India will be better able to predict
future skills requirements and make 500 million people employable and productive by 2020.

17 PROJECTS OF MOTT MAC DONALD

17.1 GIRLS' EDUCATION, SOUTH SUDAN
We designed and are managing a six-year education programme to accelerate the enrolment,
retention and completion of primary and secondary education for approximately 200,000 girls in
South Sudan.
Key facts
Almost half of South Sudan's population, approximately 11 million people, live below the
poverty line.
Girls‟ education is the most efficient strategy for breaking the cycle of intergenerational poverty
and lifting families and communities from a place of marginalization.
Only one girl in ten completes primary education in South Sudan, and girls comprise just a third
of the secondary school population.
Challenges
This project's primary aim is to transform the lives of a generation in South Sudan through
improving teaching and learning in schools and increasing girls‟ access, retention and
completion of primary and secondary education.
Solution
The programme is rooted in a communication campaign in order to bring changes in social and
individual behavior towards girls‟ education. Working with school and community based
organizations (CBOs), we will help build partnerships with governments to create girl-friendly,
safe environments in schools. The programme will also generate knowledge and further evidence
about return on investment for girls‟ education in a post-conflict context.
Value and benefits
The programme aims to benefit at least 150,000 girls in primary school and 50,000 girls in
secondary school
We're working hand-in-hand with government at national, regional and county levels to increase
the knowledge on what works in supporting girls‟ education
It is estimated that 300,000 girls and 400,000 boys will benefit from the programmer‟s broader
package of support
1,000,000 girls in households will be reached through behavior change communication to
families, communities and leaders
2,600 schools will benefit from the provision of capitation grants
Learning outcomes will improve and drop-out rate and repetition rates will decrease across all 10
states

17.2 BLUE GOLD PROGRAM, BANGLADESH

Empowering rural community organizations is the key to sustainably manage flood control,
drainage and irrigation infrastructure in the coastal areas of Bangladesh.
Participatory water resources management will improve the productivity of crops, fisheries and
livestock, benefiting 150,000 households (one million people) in coastal polders. Many of these
households are living below the poverty line and are exposed to multiple vulnerabilities such as
cyclones, storm surges, floods, droughts, salinity intrusion, as well as a lack of safe drinking
water, water logging and river siltation.
Our role
Our role is to establish and empower community and water management organizations, forming
them into strong co-operatives. These organizations should be able to interact with public and
private organizations to further develop the area and to improve the living conditions of the
people by making the available resources significantly more productive.
Key facts
Bangladesh is the largest river delta in the world. „Blue Gold‟ stands for the water in Bangladesh
as a source of life which shapes the country‟s culture.
The programme covers 26 polders with a combined area of 160,000ha and 150,000 households
in the three districts of Patuakhali, Khulna and Satkhira.
Blue Gold builds on our previous project Integrated Planning for Sustainable Water Management
(IPSWAM) and on the long-term Bangladesh and Dutch co-operation in participatory water
management in polders.
Challenges
Our team is helping communities to protect their land located in polders against floods from river
and sea, to adapt to climate change, and to optimize the use of water resources for their
productive sectors.

Solution
The creation of 850 water management organizations equipped with the technical, advocacy,
communication, and project management skills to operate and maintain water management
assets. These organizations will work with government departments, non-governmental
organizations and the private sector to improve and maintain water management infrastructure
and determine what local producers (agriculture, fisheries and livestock) can do to increase their
incomes while addressing environmental components, gender inclusion and governance.
Value and benefits
We are working closely with the Bangladesh Water Development Board (BWDB) to realise
flood protection in 26 polders by rehabiliting embankments, water intakes and outlets and by
improving water distribution and drainage systems.
In cooperation with the BWDB we will establish 850 water management groups, including an
average of 250 households, to strengthen socio-economic development.
We are using the Farmer Field School approach to help male and female farmers increase
productivity in crops, aquaculture and livestock. For technical support we are collaborating with
the Department of Agricultural Extension (DAE), Department of Fisheries (DOF) and
Department of Livestock Services (DLS).
One of the gender aspects of our efforts is to involve at least 30% of women in water
management groups, in general and as executive committee members.

17.3 CAYMAN ISLANDS AIRPORTS

Following the Cayman Islands Government granting the Government of Canada exclusivity to
develop a proposal for the renovation and expansion of two Cayman Islands airports, Mott
MacDonald was engaged to undertake a full open-book due diligence, followed by the scoping
and structuring of a PPP concession deal.



Challenges
Under Cayman Islands legislation there is now a requirement to demonstrate that the proposed
development would be value for money to the airport itself, stakeholders and businesses
associated with the airport and to the wider Cayman Islands economy. These enhancements also
had to be delivered without taking on further CI Government debt.


Solution
Mott MacDonald gained full access to airport senior management for an extended period of time
and undertook an extensive review of their financial accounts. We evaluated the current financial
model, advising on improvements to business structure, financial controls, revenue/cost
optimization of existing publicly owned assets.

We proposed a process that aligns with new „Value for Money‟ (VfM) legislation. To
demonstrate value, we authored a PFI VfM paper to inform negotiations between the Cayman
Islands Premier, governor of the islands and UK government on the prospective public private
partnership (PPP) concession and the wider macro-economic and fiscal benefits that the
concession would bring to the islands.

Benefits
Mott MacDonald delivered a bankable business case for investment off the back of route
development, increased commercialization and capital development of the assets.

As part of the due diligence, our specialist team developed a concept design and business plan,
proprietary to Aecon, for optimization of both the airfield and terminal buildings which:
Doubled the operational capacity of the airports whilst delivering the enhanced terminal capacity
for 20% less
Allowed the airports to immediately invest in the various safety and regulatory improvements
that have been highlighted by bodies such as the CI CAA and ASSI
Improved customer satisfaction by modernizing and improving terminal passenger flows to
match the international standing of the Caymans as a leading financial center and premier tourist
destination
Ensured deliverability of capital development by phasing construction to protect the ongoing
operations of the airport, whilst bringing improvements online an estimated three years earlier
than traditional procurement routes.

Expertise
Adults' and children's social care
Our strengths lie in our ability to apply our extensive knowledge and experience to support
improved outcomes in both strategic and frontline provision.
The challenges of reduced resources and increasing demand are being felt by all who support
vulnerable people. The requirement to identify needs early, predict and protect the most
vulnerable as well as enabling people whatever their age to remain at home where possible are
key drivers.
This requires organisations to work effectively together, with a clear focus on outcomes, be it as
commissioners or providers of services.
Within Children's Services the Munro Recommendations, changes in the inspection frameworks,
the new 'working together' and the Health and Social Care Bill set out the challenges for Local
Authorities and their partners, in supporting and protecting children, ensuring needs are
identified early and that all professionals contribute to the safeguarding of children.

Asset management
Helping infrastructure owners and operators achieve their strategic objectives by adding long-
term value and optimising performance, to benefit their customers and their balance sheets –
that‟s what drives our approach to asset management.
Business consultancy
Mott MacDonald‟s team includes leading industry professionals who work collaboratively with
clients, their customers and supply chains to improve business processes and deliver benefits that
support the clients‟ aims and objectives in line with business strategies
Technology and communications
Mott MacDonald's specialist consultants make technology and communications infrastructure
projects work. We are an integrated team of strategic advisers, technical experts and project
managers driving and delivering major telecommunications and IT projects around the world.
We work with you to make connections happen.

17.3.1 CORPORATE MISSION

 Creating satisfied customers through professional excellence
 Giving commercial success
 And employee fulfilment
17.3.2 VISION
 To be the consultant of choice, recognized for the quality of the customers and the
customer service

17.3.3 MARKETING AND SERVICES

Mott MacDonald in India offers specialist business advisory services for industry targeted to
assist our clients in strategizing for growth and consolidation covering the entire project
development cycle.

Services are designed to help clients introduce new operational practices and business
approaches that sharpen efficiency, enhance corporate image and improve financial
performance. Our ability to provide such advice owes much to our sound commercial
acumen and deep insight into industry sectors and linkages as well as our detailed
knowledge of issues that affect business processes such as manufacturing, operations,
marketing and finance. We assist local and multinational corporate clients in market
diversification and planning, strategies for restructuring and revival, product planning,
financial management and business process restructuring.
17.3.4 Chemicals and petrochemicals
We have advised clients on planning for petrochemical complexes and diverse downstream
industries including lubricants, polymers, composites, molded products and flexible packaging
etc. We advise government institutions, Indian and multinational corporate clients in assessing
markets, identifying products and suggesting market entry strategies besides carrying out
financial feasibility, technology search and benchmark studies
OIL & GAS
We combine business advisory services with engineering skills to provide a wide range of
services to both multinational corporations and government institutions for entry in this sector.
We cover natural gas, compressed/liquefied natural gas and liquefied petroleum gas. Our
capabilities include assisting in supply and distribution network planning, gas stations and
terminals, gas based independent power projects, parallel marketing, customer capacity and
willingness to pay, opportunity scanning and development of business strategies. We have
provided technical advisory services to all three LNG terminals in India and we are assisting
clients in city gas distribution planning
17.3.5 Building materials
We provide strategic business advice to clients on a range of building products including
medium density fibre boards, particle boards, plywood, pressed high density fibre door skins,
gypsum boards and panels, pre-cast concrete products and aerated concrete products as well as
insulation material such as glass and rock wool, false ceiling products, ceiling and flooring
products, phospho-gypsum board, decorative laminates, chipboards and sealants. Our services
mainly include business case, market studies, market entry strategy and financial feasibility
studies.
17.3.6 Agribusiness
We are well positioned to provide wide coverage in this sector right from crop production and
diversification to post harvest management, transportation, storage, processing, marketing and
project feasibility. We cover all aspects of agribusiness and assist our clients in developing
strategies that help them in long range planning for inputs, market and product development plus
vendor selection.
17.3.7 Tourism and hospitality
We offer a comprehensive set of services to the tourism and hospitality industry. We have
worked in all major Indian states in this sub-sector and have been involved in some of the key
tourism related developments in the country. We provide a wide range of services from strategic
and development planning, opportunity scanning, project identification, customer perception
analysis, pricing strategy, circuit identification and planning to demand and financial modelling
of projects and project configuration.
17.3.8 Textiles

From rehabilitation initiatives, techno-economic viability assessments and modernization and
expansion strategies to diversification planning and strategies for the promotion of exports, our
clients in the textile industry have benefited from our services. We cover non-woven fabric
interlinings and disposable products, blended yarn, polyester/cotton fabrics, readymade
garments, textile processing, textile mill spinning and weaving units.
17.3.9 Metals and minerals
We have provided support to various clients on techno-economic viability assessments,
modernization and expansion strategies, and diversification planning, due diligence studies,
business valuation, technical evaluation and restructuring plans, mainly to the iron and steel
sector.

17.4 HUMAN RESOURCE
Because Mott MacDonald is wholly employee owned and debt free, we‟re able to take a long-
term view, focusing on what‟s best for our people and our customers, rather than answering to
external investors or lenders. Our ownership model is the same everywhere, emphasising that
Mott MacDonald is an integrated global company, with shared responsibilities and rewards.
Our people reflect the ethnic and cultural makeup of the countries we work in and our core value
of Respect forms the basis of a Group-wide behavioural standard with staff training in diversity
awareness mandatory.
Worldwide we are committed to equality of opportunity and reward and to creating a fair and
equitable working environment. We regularly consult employee groups and conduct an annual
confidential worldwide staff survey, using the findings to inform aspects such as welfare
strategies and working patterns.
Visit our careers zone for information on what it's like working in Mott MacDonald and details
of opportunities
16000 Staff worldwide.
17.5 TECHNOLOGY & COMMUNICATIONS
In a rapidly changing world, everyone is striving for connections. Customers want super-fast
broadband, cities want smart utilities, our emergency services need to connect with each other
faster and more efficiently than ever before. We all want technology and communications that do
more for less.
Mott MacDonald's specialist consultants make technology and communications infrastructure
projects work. We are an integrated team of strategic advisers, technical experts and project
managers driving and delivering major telecommunications and IT projects around the world.
We work with you to make connections happen.
Whether you are a public-sector organisation or commercial business, Mott MacDonald can help
you build the connections your citizens and customers demand, and ensure you harness the value
of your technology and telecommunication investments.
Our independent, expert advice will help you to use technology and telecommunications to meet
your challenges. Our team supports you throughout your project, from strategic planning and
solution design right through to project implementation.
We help you identify and quantify the potential of your project, and deliver the plan, operation
and funding to make it happen. Pragmatic and highly experienced we understand that what
matters is what works. With our consultants at your side you'll make your projects a successful
reality.
17.6 AWARDS & RECOGNISATION

Mott MacDonald has won more than 550 international awards since 2007. It was named Global
Consultant of the Decade (2003–13) in 2013 by New Civil Engineer and the Association for
Consultancy & Engineering. These are some of the awards:
 International Consultant of the Decade at the NCE/ACE Consultants of the Decade Awards
2013
 Global Consultant of the Year 2014 at the NCE/ACE Consultants of the Year Awards for the
fourth time in seven years
 Building Awards – Mott MacDonald was named Engineering Consultant of the Year for the
second time in three years
 International Federation of Consulting Engineers (FIDIC) Centenary Awards – The Channel
Tunnel won a Major Civil Engineering Project Award
 International Federation of Consulting Engineers (FIDIC) Centenary Awards – Hong Kong
International Airport won a Major Building Project Award
 Royal Society for the Prevention of Accidents (RoSPA) – Mott MacDonald received a Gold
Medal Award having won Gold Awards for six consecutive years
 Infrastructure Journal (IJ) Awards – Mott MacDonald won all three technical advisor
categories (Overall, Energy and Infrastructure), and topped IJ‟s global technical advisor
league table
 Light Rail Awards – Mott MacDonald was named Consultant of the Year for the second year
running
 National Construction Computing Awards – Mott MacDonald won the BIM Project of the
Year Award for Casement Stadium, Belfast
 Chartered Institution of Building Services Engineers (CIBSE) Building Services Awards
 British Council ELTons – English in Action won the Local Innovation Award
17.7 CORPORATE SOCIAL RESPONSIBLITIES
In our approach to corporate social responsibility we seek to deliver sustainability and make a
positive, lasting difference through our projects and the way we behave.
Worldwide, we are committed to supporting our customers, nurturing our staff, protecting the
environment and caring for our communities. By being a responsible corporate citizen, we aim to
contribute to the long-term wellbeing of our company and all we work with.
Corporate responsibility led from the top
The Group Board provides strong leadership on all aspects of corporate responsibility, with
defined roles for each Board director. Their personal commitment, high profile and influence
ensure that responsible behaviour is driven from the top, across the worldwide Group.
Close engagement with corporate responsibility also means the Board understands issues and
needs at a „grass roots‟ level, enabling Mott MacDonald to respond quickly and appropriately.
We aim to implement industry best practices and show leadership in the field of corporate
responsibility. When appropriate we align our own policies with those of customers, government
and civil society organisations to advance our own performance.
Responsible behaviour is reinforced by policies covering environment, equality and diversity,
ethics, health and safety, human resources, quality, risk, social responsibility and sustainability








18 INTRODUCTION OF THE STUDY
Background & Importance of the study
This study is very important for the purpose of research to understand and improve delivery of
financial education which in turn will lead to a higher level of financial literacy and financial
inclusion in India
NEED OF THE STUDY
Even after 6o years of independence, a large section of Indian population still remain unbanked.
This malaise has led generation of financial instability and pauperism among the lower income
group who do not have access to financial products and services.
Why financial inclusion is important in India?
The policy makers have been focusing on financial inclusion of Indian rural and semi-rural areas
primarily for three most important pressing needs:
 Creating a platform for inculcating the habit to save money – The lower income
category has been living under the constant shadow of financial duress mainly because of
the absence of savings. The absence of savings makes them a vulnerable lot. Presence of
banking services and products aims to provide a critical tool to inculcate the habit to save.
Capital formation in the country is also expected to be boosted once financial inclusion
measures materialize, as people move away from traditional modes of parking their
savings in land, buildings, bullion, etc.

 2. Providing formal credit avenues – So far the unbanked population has been
vulnerably dependent of informal channels of credit like family, friends and
moneylenders. Availability of adequate and transparent credit from formal banking
channels shall allow the entrepreneurial spirit of the masses to increase outputs and
prosperity in the countryside. A classic example of what easy and
affordable availability of credit can do for the poor is the micro-finance sector.

 3. Plug gaps and leaks in public subsidies and welfare programmes – A
considerable sum of money that is meant for the poorest of poor does not actually reach
them. While this money meanders through large system of government bureaucracy
much of it is widely believed to leak and is unable to reach the intended parties.
Government is therefore, pushing for direct cash transfers to beneficiaries through their
bank accounts rather than subsidizing products and making cash payments. This laudable
effort is expected to reduce government‟s subsidy bill (as it shall save that part of the
subsidy that is leaked) and provide relief only to the real beneficiaries. All these efforts
require an efficient and affordable banking system that can reach out to all. Therefore,
there has been a push for financial inclusion.













19 OBJECTIVE OF THE STUDY

 To list the various measures & initiatives of state / central government with
respect to financial inclusion

 To find out the implications of these initiatives on financial inclusion


 To find out the steps taken by the banks in the area of financial inclusion

 To find out how are the schemes of RBI on financial inclusion is taken into account.

 To identify various steps and mechanisms to strengthen SHG lending and micro
financing.

 To make suggestions for improvement of the present situation which will lead to
sustainable development

 To understand the scope and coverage of financial inclusion in India.








HYPOTHESIS
H1: There is a significant impact of income of the respondents on the literacy and
relationship with financial inclusion (respondents who are having an income of more than 2,
00,000 lacks are more inclined towards availing the banking facilities)
H0: There is no significant impact of income of the respondents on the financial literacy and
financial inclusion
COLLECTION OF DATA
Data was collected by primary methods.
The primary data was gathered through personal interaction with various respondents by
visiting their houses. Some information was also collected from kirana stores also.
TOOLS EMPLOYED
Tools employed in the study are Microsoft Excel, Microsoft Word
20 DATA COLLECTION
It was a primary data research. I had to visit the households with the sample questionnaire to fill the
questions from various respondents, one questionnaire from every houses of the allocated areas. The
questionnaire was made by the company itself.






21 ANALYSIS


Interpretation: total sample size was 159 out of which 124 respondents are from the urban
areas and 35 respondents are from the rural areas. The areas which I surveyed out of which 78%
are urban areas and 22% areas are rural.


Interpretation: here are the different age group of the respondents. Maximum no of respondents
belongs from the 25-49yrs age group.
<25 25-49 50-64 >64
Age Group 33 73 42 11 159
Age Group 20.75471698 45.91194969 26.41509434 6.918238994
0
20
40
60
80
100
120
140
160
180
A
x
i
s

T
i
t
l
e

Age Group

Interpretation: the ratio of male and female respondents is 60 & 40


Interpretation: no of respondents from the general category is much higher followed by
OBC ,SC,ST which clearly indicates general category people are much higher in this area .
Male Female
Gender 96 63 159
Gender 60 40
0
20
40
60
80
100
120
140
160
180
A
x
i
s

T
i
t
l
e

Gender
General SC ST OBC
Category 47.79874214 17.61006289 11.32075472 23.27044025
Category 76 28 18 37 159
0
20
40
60
80
100
120
140
160
180
A
x
i
s

T
i
t
l
e

Category

Interpretation: most of the respondents are from the joint family. 64% of the total
households are from the joint family


Interpretation: 4% of the total respondents are illiterate, so people are found mostly
educated in this area .
Nuclear Joint Total
Household Structure 57 102 159
Household Structure 35.8490566 64.1509434
0
20
40
60
80
100
120
140
160
180
A
X
I
S

T
I
T
L
E

Household Structure
literate illiterate
Category 155 4 159
Category 97.48427673 2.51572327
0
20
40
60
80
100
120
140
160
180
A
x
i
s

T
i
t
l
e

Education

Interpretation: almost 78% of the total respondents are full time working employee and
18% are not working, so most of the people are from the same income group


Interpretation: there is less significance difference in the attitude, almost like 50% of the
respondents feel living for today and let tomorrow take care of itself
Full Time Per time Not Working
Working Status 124 5 30 159
Working Status 77.98742138 3.144654088 18.86792453
0
20
40
60
80
100
120
140
160
180
A
x
i
s

T
i
t
l
e

Working Status
29.55974843
13.83647799
11.94968553
22.01257862
22.64150943
0 50 100 150 200
Strongly Agree
Agree
Neutral
Strongly DisAgree
DisAgree
Attitude
Financial Attitude
Financial Attitude

Interpretation: respondents who are not willing to spend more is much higher than willing
peoples and there is good numbers of people also who are neutral. 44% people disagreed,
29% are neutrals and 27% peoples agreed to spend.


Interpretation: 58% of the respondents doesn’t feels money is only there to be spent .
Total %
Strongly Agree 33 20.75471698
Agree 12 7.547169811
Neutral 46 28.93081761
Strongly DisAgree 31 19.49685535
DisAgree 37 23.27044025
159
0
20
40
60
80
100
120
140
160
180
A
x
i
s

T
i
t
l
e

Spending Pattern
0 20 40 60 80 100 120 140 160 180
Strongly Agree
Agree
Neutral
Strongly DisAgree
DisAgree
Strongly
Agree
Agree Neutral
Strongly
DisAgree
DisAgree
% 8.805031447 13.20754717 20.12578616 38.36477987 19.49685535
Total 14 21 32 61 31 159
Money is there to be spent

Interpretation: 80% of the total respondents doesn’t have any fixed household budget


Interpretation: 72% of the total respondents households are not responsible for money
management in the family.
Yes No
Total 128 31 159
% 80.50314465 19.49685535
0
20
40
60
80
100
120
140
160
180
A
x
i
s

T
i
t
l
e

Household Budget
0 20 40 60 80 100 120 140 160 180
Yourself
Others/None
Yourself Others/None
% 27.67295597 0 0 0 72.32704403
Total 44 115 159
Financial Manager

Interpretation: 67% of the total respondents have encountered a situation where income
doesn’t cover living costs.




Interpretation: 92% LI, 96% MI,88% HI, 83% & 28% of the total respondents are aware of
the insurance but the people who are using is very less apart from LI,MI & HI
Yes No
Total 67 92 159
% 42.13836478 57.86163522
0
20
40
60
80
100
120
140
160
180
Adversites
0 20 40 60 80 100 120
Life Insurance
Motor Insurance
Health Insurance
Home Insurance
Crop Insurance
Cattle Insurance
Life
Insurance
Motor
Insurance
Health
Insurance
Home
Insurance
Crop
Insurance
Cattle
Insurance
Use % 31 28 16 0 0.2 0.3
Holding % 44 35 22 7 4 0.6
Awareness % 92 96 88 83 28 22
Insurance




Interpretation: 81% of the total respondents are financially aware or they knew how to divide
money in two parts


Total %
> 50,000 0 0
Equal To 50000 121 76.10062893
< 50,000 8 5.031446541
Don't Know/Can't Say 30 18.86792453
159
0
20
40
60
80
100
120
140
160
180
Financial Knowledge
NO. OF RESPONDENT HAVE DIFFERENT BANKS ACCOUNT & SAVING


yes no
not
applicable
SAVING BANK ACCOUNTS/NO FRILL ACCOUNT 123 8 25
RECURRING DEPOSIT 15 1 140
FIXED DEPOSIT 23 10 123
OVERDRAFT FACILITY 2 0 154
KISAN CREDIT CARD 11 0 145
GENERAL CREDIT CARD 0 1 155
OTHER BANK LOANS 37 0 119
CREDIT CARD 11 0 145
PUBLIC PROVIDENT FUND 5 0 151
POST OFFICE SAVING SCHEME 13 2 141
NSCERTIFICATE/KISAN VIKAS PATRA 1 0 155

Interpretation: most of the respondents are having their bank account, few respondents have
other bank loans but apart from it most of the respondents are not aware/availed other
facilities


0
50
100
150
200
not applicable
no
yes
22 RECOMMENDATIONS & ACTION PLAN
 Government should come up with a banking awareness program specially in the rural
areas so that the people gets more familiar with the private banks as well as SBI
 Process for opening a bank account should me made for easier or the documents required
for opening a bank account should be less
 Interest rate needs to be increased, due to this less interest rate many people investing
their money on cheat funds to get more money in quick time
 More banks should open their branches in different parts because in most of the rural
areas banks are far away which is hindering people from opening their bank account
 Easy loan facility


23 MAJOR FINDINGS
 Financial literacy is rapidly being recognized as a core skill, essential for consumers
operating in an increasingly complex financial landscape. It is therefore no surprise that
governments around the world are interested in finding effective approaches to improve
the level of financial literacy amongst their population and that many are in the process of
creating and implementing a national strategy for financial education to provide learning
opportunities throughout a person‟s life
 Reflects a better understanding of the importance of financial inclusion for economic as
well as social development
 Financial education strategies benefit from empirical evidence to indicate the level of
need amongst the population and within particular subgroups. The measurement of
financial literacy levels is therefore widely recognized as a priority for countries seeking
to deliver financial education initiatives
 This study comprises questions on both financial literacy and financial inclusion covering
financial knowledge, behavior and attitudes relating to budgeting and money
management, short and long term financial plans, and financial product awareness and
usage. This study would also provide comparative analysis of states/ UTs on various
aspects of financial literacy and financial inclusion and help evaluate India‟s standing at
the global level


24 LIMITATIONS OF THE STUDY
 It takes a lot of time to visit different places without knowing the place and the peoples over
there and asking 50 questions on a trot, Still I have tried my best to complete all of the
samples
 Making the respondents listen why I am doing the survey was the toughest job
 Making the respondents more interactive I had to figure out a question to start off that can
make the respondents more comfortable so he/she can feel more free to answer all other
questions without any hesitation
 Choosing the right respondents was also a tough job
 Lack of specialized in collecting data
 Long set of questionnaire sometimes irritates respondents and sometimes act as barrier in
getting correct information














25 CONCLUSION
Ensuring competent, timely and unrestrained access to public goods and services is the quintessence of
an open and efficient society. As financial products and services, especially the banking services, are
considered as public goods and services, making available these services to the entire population
without any type of discrimination, is the foremost need of the inclusive system.
From the study it can be easily inferred that there is a vast difference between the rural and urban
people in terms of knowledge or awareness about financial terms and their implications and use. People
who are financially aware and having a good disposable income but still lacks the knowledge about the
stock & commodity market so the investment in these markets are less. People in urban areas mostly
the working people are aware of the various products and services in comparison to rural areas where
hardly a handful of people are aware or have availed the products and services even a well literate
people refused to use banking products and they are more inclined to avail services from the
unregulated sources which gives a better return than banks, many of the people doesn’t even have the
required documents to open a bank account. People who is working or previously worked in
government firms are more aware of the banking or financial terms.










26 REFERENCES
 Google.com
 Mott MacDonald surveying financial literacy across India
(https://www.mottmac.com/releases/mott-macdonald-surveying-financial-literacy-across-india)
 Mr Khushrow Chinoy Consultant Infrastructure & Social Advisory