Financial illiteracy an obstacle to Growth

December 28, 2020

It’s 25th Dec 2020 morning at 10 am. I called my friend Rakesh, he mentioned that he is on his Christmas holidays to Ooty. I said WHAT ?. I had my surprise attack when he mentioned that he is on a “Credit card vacation” !!!

“India is home to 17.5% of the world’s population and according to a survey conducted by Standard & Poor’s, over 76% of adults in India lack basic financial literacy and fail to understand the most basic financial concepts.” This just doesn’t end with credit discipline.

  • “India has nearly 4 crore Demat accounts and only 0.95 lakh are active. “

  • “The penetration of non-life insurance sector in the country has gone up from 0.56 in 2001 to just 0.97 in 2018 (0.93 in 2017)”

  • “At least 988 million Indians that is more than 75% of all Indians are not covered by any form of life insurance and an Indian is assured of only 8% of what may be required to protect a family from financial shock.”

Lack of knowledge pertaining to basic financial hygiene like budgeting, investments planning, insurance, government policies etc has handicapped the majority of the Indians. Such financial illiteracy prevents them from making the most of the benefits that are available to them. This is a sector that has seen little progress and exploration due to lack of information. We at aim to bridge this gap with our courses and training that simplifies these aspects to help the common man.