Indian Financial System and New Economic Paradigm: Bridging Gaps through Financial Literacy

Sakshi Agrawal

doi:10.21844/crr.v2i01.1125

Sakshi Agrawal Faculty of Commerce, Banaras Hindu University, Varanasi

DOI: https://doi.org/10.21844/crr.v2i01.1125

Keywords: Indian financial system, new economic paradigm, financial literacy, digital finance, inclusive, financial inclusion, regulatory frameworks, knowledge distribution, technology reforms

Abstract

Market modernization and globalization have accelerated since economic liberalization in 1991, bringing revolutionary
changes to the Indian financial sector. Improvement has been made, but still, there are many obstacles to overcome before
the great majority of Indians can enjoy stability, financial inclusion, and literacy. The financial system in India evolves
quickly in answer to changes in the global market, advances in technology, and changes in domestic legislation. Financial
literacy is essential to ensure development, stability, and inclusion in this new economic scenario. This study is descriptive.
This study focuses on how the Indian financial system is currently doing, the gaps brought about by recent economic
changes, and by what means financial literacy could benefit from closing these gaps. The study emphasizes the need to
prepare individuals with financial literacy to allow informed decision-making and economic involvement by examining the
links between financial literacy and prominent industries including banking, digital finance, and financial inclusion.