Measurement and Analysis of Financial Literacy : A Study of Kinnaur District of Himachal Pradesh

Although ‘National Mission for Financial Inclusion’ launched in August 2014 has achieved remarkable success in India, ‘Financial Illiteracy’ remains a major bottleneck in financial inclusion. This paper measures the financial literacy level of Kinnaur district of Himachal Pradesh, a north Indian state situated in the Western Himalayas. Investigating the socio-economic and demographic determinants of financial literacy, the study reveals low level of financial literacy despite relatively better social indicators of the district and explains the factors causing such levels. ‘Education’ and ‘Income’ are found to be significant explanatory variables of financial literacy