Thoughts of Rural Development through Developing Financial Skills

Abstract

The issue of financial literacy is of greater concern in developed countries than the developing nations.
Financial literacy gained far more importance after the financial distresses and become the pre-requisite
with the objective to avoid financial crisis by attaining financial stability. In recent years, financial literacy
has gained the attention of a wide range of major banking companies, government agencies, grass-roots
consumer and community interest groups, and other organizations. Interested groups, including
policymakers, are concerned that consumers residing in rural India lack a working knowledge of financial
concepts and do not have the tools they need to make decisions most advantageous to their economic wellbeing.
Such financial literacy deficiencies can affect an individual's or family's day-to-day money
management and ability to save for long-term goals such as buying a home, seeking higher education, or
financing retirement of rural people. Ineffective money management can also result in behaviours that make
consumers vulnerable to severe financial crisis. This paper tries to explore all those major concepts and
measures which can be extremely helpful in the developing not only the rural living of standard but also the
mindset of common people. We can also see the extensive literature in this area which will be ultimately
helpful for knowing the current phenomenon.Success in expansion of financial awareness as a part of
financial literacy among individuals ensures the prevalence of financial well being and much required
financial inclusion. Apex regulatory bodies in India are trying to achieve utmost level of financial inclusion.
It cannot be attained without the basic requirement of Financial awareness and Literacy among common
individuals.