Lok Sabha Question No. 998 (UNSTARRED), answered on 2019-02-08
Subject: Financial Literacy
Ministry: FINANCE
Asked by: PARAYAMPARANBIL KUTTAPPAN BIJU

## GOVERNMENT OF INDIA

## MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED QUESTION No. 998

TO BE ANSWERED ON &"h FEBRUARY. 2019 (FRIDA YYMAGHA /9. 1940 (SAKA)

## Financial Literacy

Will the Minister of FINANCE be pleased t0 state:

- (a) whether the Government has conducted surveys t0 measure financial   literacy in rural populations:
- b) if so the details thereof: State UT-wise. ineluding Kerala and if not the reasons therefor:
- population in rural State UT wise: ing
- (d) whether the Government has an action   plan inerease   personalised  banking   services t0 improve financial literacy and awareness in rural areas: and

## Answer

## The (SHRI SHIV PRATAP SHUKLA)

- have condueted a pan-India Financial Literacy and Inclusion survey in 29 States and 5 Union Territories (exeluding Andaman & they
- Nicobar Islands and Lakshadweep Islands). Under this survey financial literacy was measured across three  components   namely  finaneial  knowledge. attitude and behaviour: Further. the maximum score for the   three   components of" financial knowledge. financial attitude and tinancial behaviour are 7 5 and 9 are 3.7. 2.6 and 5.6. respectively and for Overall financial literacy it is /1.9 out of the total score of 21

As apprised by RBL, although; the State-wise finaneial literacy scores: based on the survey. for rural areas are not available. the same is available zone wise. The average score for different zones is as under-

| Zone    | Overall Financial Literacy Score   | Urhan   | Rural   |
|---------|------------------------------------|---------|---------|
| North   |                                    |         | 11.5    |
| East    | 12.1                               | 12.1    |         |
| Central | 12.4                               | 125     | 12.1    |
| West    |                                    | 12.6    | 125     |
| South   | 11.0                               |         | 10.3    |

Source: RBI

- if so. the details thereof?
- C

not centrally maintained. However; under PMJDY. all villages in the country are mapped into 1.59 lakh Sub Service Areas (SSAs), where each SSA covers 1.000 to 1,500 households. Out of 1.59 lakh SSAs. while 0.33 lakh SSAs are covered with bank branches. approximately 1.26 lakh SSAs are covered with inter-operable Business Correspondents (BCs). Further. State/UT-wise number of SSAs covered with BCs is at Annex:

- (d) and (e) Following RBL guidelines  rural branches and Finaneial Literacy Centres (FLCs) of banks conduct camps for financial literacy across the country. Rural branches and FLCs of" banks have been advised by RBI the   audio visuals basic financial awareness messages such as address declaration under KYC norms. use of" Business Correspondents, electronic payment systems not falling prey to fictitious emails/calls and   ponzi  schemes BHIM and various ways of"going digital and by National   Centre for Financial Education. proof' using

| State/Union Territory   | Number of SSAs covered with Business Correspondents   |
|-------------------------|-------------------------------------------------------|
| Andaman Nicobar Islands | 26                                                    |
| Andhra Pradesh          | 6399                                                  |
| Arunachal Pradesh       | 82                                                    |
| Assam                   | 3232                                                  |
| Bihar                   | 10466                                                 |
| Chandigarh              | 5                                                     |
| Chhattisgarh            | 2510                                                  |
| Dadra & Nagar Haveli    | 28                                                    |
| Daman & Diu             |                                                       |
| Delhi                   | 18                                                    |
| Goa                     | 61                                                    |
| Giujaral                | 5846                                                  |
| Haryana                 | 2108                                                  |
| Himachal Pradesh        | 1729                                                  |
| Jammu & Kashmir         | 1024                                                  |
| Jharkhand               | 3233                                                  |
| Karnataka               | 5154                                                  |
| Kerala                  | 1314                                                  |
| Madhya Pradesh          | 10383                                                 |
| Maharashtra             | 11780                                                 |
| Manipur                 | 250                                                   |
| Meghalaya               | 166                                                   |
| Mizoram                 | 53                                                    |
| Nagaland                | 105                                                   |
| Odisha                  | 516                                                   |
| Puducherry              | 42                                                    |
| Punjab                  | 2392                                                  |
| Rajasthan               | 7638                                                  |
| Sikkim                  |                                                       |
| Tamil Nadu              | 8827                                                  |
| Telangana               | 4183                                                  |
| Tripura                 | 323                                                   |
| Uuar Pradesh            |                                                       |
| Uuarakhand              | 1710                                                  |
| West Bengal             | 8530                                                  |
| Total                   | 126250                                                |

Source: Banks