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© 2018, IJCSE All Rights Reserved 20
International Journal of Computer Sciences and Engineering Open Access
Research Paper Vol.6, Special Issue.9, Nov 2018 E-ISSN: 2347-2693
Empowering Women Through Financial Literacy in Rajasthan
B. Arora1*, S. Sharma2, M. S. Pahwa 3
1Dept. of Commerce, School of Business and Commerce, Manipal University Jaipur, Jaipur ,India
2Dept. of Commerce, School of Business and Commerce, Manipal University Jaipur, Jaipur, India
3Dept. of Commerce, School of Business and Commerce, Manipal University Jaipur, Jaipur, India
*Corresponding Author: bhaskararora777@gmail.com, Tel.: +91 7568111710
Available online at: www.ijcseonline.org
Abstract The paper unfolds the dearth and bottlenecks of microfinance\micro credit facilities to women in Rajasthan. The
study focuses on the financial literacy among women in rural area as compared to urban women. The contribution in GDP of
rural women is exorbitant which indicates potential growth but literature shows lack of proper financial support to women has
affected their contribution in GDP and has led to lower contribution in the economic growth of rural population in Rajasthan.
The Paper focuses on the level of financial literacy among the rural woman of Rajasthan.
Keywords Financial literacy, financial inclusion,Women empowerment
I. INTRODUCTION
Finance is necessary to transfigure ideas into business since
finance is oxygen for business [Yallapragada,2011]. In order
to make optimal utilization of finance, financial literacy is
crucial. Financial literacy refers to comprehend the
application of money and take proper judgment regarding
better utilization of money. Government policies will not be
fruitful for the people if they don’t have the knowledge about
the policies and how Introduction should lead the reader to
the importance of the study; tie-up published literature with
the aims of the study and clearly states the rationale behind
the investigation. It should state the purpose and summarize
the rationale for the study and gives a concise background[1].
Use references to provide the most salient background rather
than an exhaustive review. The last sentence should
concisely state your purpose for carrying out the study or a
summary of the results[2].
II. OBJECTIVE OF THE STUDY
1] To study the current status of financial literacy among
Women in Rajasthan.
2] To identify various Government policies aiming at
financial inclusivity of rural women in India (especially
Rajasthan).
3] To suggest some measures for promoting financial
inclusivity among Women in Rajasthan.
III. RESEARCH METHODOLOGY
The study is based on secondary data collection from the
RBI website on state-wise statistics published related to
financial inclusion and practice and other government
website and other net based resources.
To take benefits from it. Illiteracy, lack of infrastructure and
dearth of awareness are the roadblocks in the path of
financial inclusion(Sibi,M. S.&Ananth,2017). Though
literacy rate among urban women is 79.01 per cent and
among rural women is 57.39 per cent still India stood at 23rd
place in respect of financial literacy, having only 35 per cent
of Indians as financially literate (Visa, Financial Literacy
Survey,2014).
IV. FINANCIAL LITERACY IN RAJASTHAN
Rajasthan holds one of the lowest financial literacy rates
among Indian states. It is characterized by a male dominating
society where female literacy is 52.12 percent, out of which
only 12 per centare financially literate (national centre for
financial education,2015), opportunities for women are in
paucity.
According to Mandell (2007) financial literacy is “The
abilityto evaluate the new and complex financial instruments
and make informed judgments in both choice of instruments
and extent of use that would be in their own best long-run
interests”.
According to S&P survey, 2015 only 20 percent of Indian
women are financially literate. This is an alarming situation
for Rajasthan. There are total 44,795 villages (Directorate of
Census Operations Rajasthan)., among them only 1,778 skill
centres are still incapable of sufficiently training and
providing employment to all the rural youth of Rajasthan.
In order to cope up with the situation, Rajasthan Government
should encourage entrepreneurs. Entrepreneur is a French
word coined by the economist Jean-Baptiste Say, and usually
is translated as, "adventurer". When a person starts a venture,
one is considered Entrepreneur(Williams, Colin,2011), but to
start a venture one needs a lot of effort and support from
International Journal of Computer Sciences and Engineering Vol.6(9), Nov 2018, E-ISSN: 2347-2693
© 2018, IJCSE All Rights Reserved 21
government as well as family. Entrepreneurship means risk
and risk indicate uncertainty. This element of uncertainty,
along with dearth of resources, works as a hindrance in
opening up of new business. An entrepreneur not only
creates job for himself but for others too.
(Adegoke,2003).Therefore, entrepreneurship should be
encouraged.
To start a business initially one should be catered with basic
needs like Financial Education, right to equality and support
from society. Global peace foundation states that Educate a
Woman and You Educate a Family; Educate a Girl and You
Educate the Future” with the same approach provide finance
to women and a family will be prosperous and provide
finance to women entrepreneur whole economy will be
prosperous. Therefore, Government should focus more on
encouraging Women entrepreneurs. Indian women
contributed just 17 per cent of national GDP, which is less
than half the global average of 37 per cent, according to a
McKinsey study. This shows the scope of work to be done
for the participation of women in GDP. This can be achieved
with the help of financial inclusion[6].
V. FINANCIAL INCLUSION IN INDIA
The term ‘financial inclusion’ was used for the first time in
April 2005 in the Annual Policy Statement presented
by Venugopal Reddy the then Governor of India. The main
focus of this concept is to provide banking services to rural
area and transform them from financially excluded to
financially included.Financial literacy is the foundation of
financial inclusion[7]. Financial inclusion (FI) may be
defined as the process of ensuring access to financial services
and timely and adequate credit where needed by vulnerable
groups such as weaker sections and low-income groups at an
affordable cost[8].
VI. POLICY IMPLEMENATION
National mission for financial inclusion was commenced in
the form of Pradhan Mantri Jan dhan yojana by Narendra
Modi in the year 2014. Under this yojana each account
holder was provided with RuPay debit card to link them with
the other financial services of banks. An accident insurance
cover of Rs. 100,000 was also provided to each account
holder and life insurance coverage of Rs. 30,000 and an
overdraft facility of Rs. 5,000 was given for those opening
their accounts before January 26. To make sure that the
yojana was implemented efficiently, RBI took the help of
National Payments Corporation of India (NPCI). Because of
the steps taken and rebates provided by the government,
more than 15 lakhs accounts were opened on the very first
day. In fact, India holds a place in Guinness book of world
record in opening 18,096,130 accounts in one week as a part
of financial inclusion campaign. Although later it was found
that over 92,52,609 were frozen on March 24, 2017 due to
lack of transactions since last one year. Around 77 per cent
people were baffled by the complicated procedure of debit
card and complex transaction procedure. [9]
In RajasthanRecently, various measures are taken in
Rajasthan to help women and make them financially
inclusive. Vasundhara Government catered rural women with
Bhamasha card. The Scheme was initiated in 2008. After
opening over 29 lakh bank accounts for
womenapproximately 160 crores were transferred. This was
a constructive step towards financial inclusion of women in
Rajasthan.
Due to the growing demand of entrepreneurs in India, the
government started Entrepreneurship and Management
Development Institutes inJaipur, This Instituteoffers a variety
of EDP courses directly or with the help of NGOs working in
this sector.
To encourage women participation in this scheme, there were
special measures taken by the government-
1) The three-pronged strategy envisaged was introduced to
focus on enhancing the entrepreneurial skills of women and
removing their credit related bottlenecks and to help them
increase their employment opportunities.
2) Schemes were also introduced for special rebate of 10%
on industrial lands and an equity type assistance under the
Mahila Udhyam Nidhi Scheme.
3) A shelf of projects was prepared and updated periodically
for women.
4) Flatted factories were also allotted to women
entrepreneurs on deferred payment basis on the condition
that they have to undergo some training courses.
5) 30% seats were reserved for women in the courses which
will help women Entrepreneurs to develop their potential.
Issues relating to financial literacy and financial inclusion of
women in rural area Education makes an individual skilled
and more productive (Ernst and young,2014). Lack of
literacy among women works as a hindrance in
understanding the fundamental banking services.
Lack of trust on government alsocreates an obstacle in the
success of government policies in rural area. They don’t have
the confidence on the financial system. Till date people
prefer to save at home rather than saving in bank which
result in enormous amount of idle money which results in
withdrawal of currency from the economy and break the flow
of money. Orthodox mentality of rural people makes it
challenging for the Government.
Problem of inequality is also a concern. Today when urban
women are achieving heights in every field, woman residing
in rural still fighting for their basic rights
International Journal of Computer Sciences and Engineering Vol.6(9), Nov 2018, E-ISSN: 2347-2693
© 2018, IJCSE All Rights Reserved 22
VII. CONLUSIONS AND SUGGESTIONS
Rural women working on agriculture land contributing to the
country’s GDP is commendable.But still they are dependent
on others. Financial literacy will pave the path for women to
elevate their confidence and to achieve the place which they
deserve. For an economy to flourish and stablish
internationally women play a vital role. Blaming the
Government will not provide the solution of the problem.
Instead, cooperation with the government is required.
Financial literacy will not only help them to take decision
regarding better utilisation of funds but it will also build trust
on banking sector which is one of the utmost priorities.
Financial inclusion will be triumph if both government and
banks take equal initiative in educating women aboutopening
and increasing theirbusiness with the access of banking
services.
As Catering weaker section of the society with finance will
not resolve their issues, in the same manner just connecting
people with financial services is not sufficient. We first need
to educate them on how to use their financial resources in
productive way and make them aware about the measures
available for investmentand use their resources with full
efficacy, so that they could be able to get maximum return on
their investment.
Providing resources to unskilled person nevergive favourable
results[10]. More over being financial literate is not
sufficient, but they should be financially educated. Just
opening the bank accounts will not serve the purpose until
they don’t know the use of it.
Proper channelizing of income generated from rural women
and making them acquainted with banking services will give
some constructive results. The old school psychology of
people to save at home and not to deposit in bank is a big
hurdle for financial inclusion. To make financial inclusion in
Rajasthan a success, focus on women entrepreneur will be a
turning point. Making policies to educate them how to avail
the banking services will not only make them financially
literate but also construct a roadmap for future women
entrepreneur.
REFERENCES
[1] Yallapragada, Ram Mohan R; Bhuiyan, Mohammad (2011). Journal
of Applied Business Research; Laramie. 27 (6) :117-122.
[2] Sibi,M. S. & Ananth, A. A. (2017). Banking inclusion-A gateway to
financial inclusion. Sumedha Journal of Management, 6(1), 4-19.
[3] Visa, Financial Literacy Survey, Indians among least financially
literate people globally, Firstpost.com, December 2014.
[4] Williams, Colin C; Gurtoo, Anjula (2011). International Journal of
Gender and Entrepreneurship; Bingley. 3 (1) :6-22.
[5] Adegoke, Y. (2003). It takes an entrepreneur to catch an
entrepreneur. FT. Com, 1. Retrieved from
https://search.proquest.com/docview/228815595?accountid=174204
[6] Singh, C., & Kumar, R. (2017). Financial literacy among women:
India scenario. Universal Journal of Accounting and Finance 5(2):
46-53. DOI: 10.13189/ujaf.2017.050202.
[7] Lusardi,A(2008), 'financial literacy: An essential tool for informed
consumer choice?', NBER, Working Paper 14084.
[8] Rangarajan Committee report on Financial Inclusion 2018.
Retrieved on August 11, 2018 from
https://www.sidbi.in/files/Rangarajan-Commitee-report-on-
Financial-Inclusion.pdf.
[9] Chakrabarty, K. C. (2013). Financial Inclusion in IndiaJourney So
Far and Way Forward. Keynote Address at the Finance Inclusion
Conclave.
[10] Agarwal, T. (2016). An analysis of the twin pillars of the banking
in India: Organised by CNBC TV, 18.
Authors Profile
Mr. B. ARORA, Ph.D. (Pursuing), M.COM. (EAFM),NET,
P.G DIPLOMA IN FRENCH, A1,A2,B1 in FRENCH, B.COM,
Research Scholar- Manipal University Jaipur. He joined
Manipal University on August 07, 2017 as Full time research
Scholar having one year experience of Teaching assistantship
and one year experience of reseach. He contributed in one book
chapter in Taylor and Francis. One paper has been published in
UGC approved journal He is also a member of Indian
Accounting Association(IAA). He has attended four workshop
one of them organised by Assosiation of Indian Universities and
and attended four worshop and one colloquim
Dr. S. SHARMA, Ph.D, M.Phil, M.Com, MBA, SLET, NET
He joined Manipal University, Jaipur in year 2013 as Assistant
Prof in the School of Business and Commerce and handling
various courses related to field of Finance and
Banking for UG and PG programmes. Perior to this he has total
experience of around 12 years in the academic and industry. He
works with ICICI Bank Limited and Bank of Baroda cards
Limited. He has attended more then 35 conference and
workshop of national and International level.
Dr. Manvinder Singh Pahwa B.Com, M.Com., Ph.D., ACS,
PGDIB, PGDHR, LL.B., LL.M. M.B.A (Gold Medalist)
He an eminent academician with a rich experience of 18+ years
which is a rare blend of academia, industry, corporate
consultancy and research. Presently, he is working as r
Associate Professor-Senior Scale School of Business and
Commerce, Director, Alumni Relations at Manipal University
Jaipur. He has participated at numerous National & International
Conferences, Chaired the Sessions in India and abroad and his
37 research papers are published in referred national and
international journals. Besides, being an academician, he had
been Legal and Financial Consultant to a number of listed and
private Ltd. Companies. He has also worked as CFO of Cactus
Menswear Fashions Private Limited, Bangalore, a subsidiary of
FBC Inc, New York. Dr. Pahwa has conducted and delivered
more than 100 special courses for faculty development for
various Government and private schools and colleges. He is a
regular invitee for orientation and refresher course lectures in
area of research methodology, SPSS, Ethics in Research etc at
UGC-HRDC. He is also a regular speaker for Rajasthan Policy
Academy Jaipur and Administrative Officers Training School
Jaipur. He is also member of Doctoral Research Committee of
various Universities. Till date, 6 scholars have got their Ph.D.
awarded under his guidance.
... Financial literacy would help women to become independent and confident enough to speak up for themselves (Arora Bhaskar and et al. 2018). They further insisted that women should be made capable of investing in financial instruments in order to generate income, and secure their future, practice of proactive money management and financial planning to secure their future. ...
Chapter
Risk and return are the two terms which are used while making investments. Financial literacy is an important indicator of measuring risk tolerance level as it helps in making sound financial decisions and planned investment choices. Financial literacy not only broadens the scope of investment choices and financial planning but also helps in the process of rotating money and diversification of funds. This study helps to explore the impact of financial literacy on risk tolerance behavior of females. Risk tolerance is an important indicator which helps in looking at the amount of surplus funds with the people, the preferred tool of investment, and how well they are managing and diversifying funds. As per the authors, 200 females working in the unorganized sector were surveyed in Uttar Pradesh region. Data was collected through a questionnaire which was designed to test the financial literacy, financial prudence, and investment pattern of females and how the access to financial products, services, and wealth impacts the confidence and risk-taking aptitude of females.
... Financial literacy would help women to become independent and confident enough to speak up for themselves (Arora Bhaskar and et al. 2018). They further insisted that women should be made capable of investing in financial instruments in order to generate income, and secure their future, practice of proactive money management and financial planning to secure their future. ...
Chapter
Full-text available
Risk and return are the two terms which are used while making investments. Financial literacy is an important indicator of measuring risk tolerance level as it helps in making sound financial decisions and planned investment choices. Financial literacy not only broadens the scope of investment choices and financial planning but also helps in the process of rotating money and diversification of funds. This study helps to explore the impact of financial literacy on risk tolerance behavior of females. Risk tolerance is an important indicator which helps in looking at the amount of surplus funds with the people, the preferred tool of investment, and how well they are managing and diversifying funds. As per the authors, 200 females working in the unorganized sector were surveyed in Uttar Pradesh region. Data was collected through a questionnaire which was designed to test the financial literacy, financial prudence, and investment pattern of females and how the access to financial products, services, and wealth impacts the confidence and risk-taking aptitude of females.
... The study further concluded that improving financial literacy levels among rural women could reduce their dependency on husbands to mediate the financial transaction. Arora et al. (2018) found that the level of financial literacy among the rural area women could even impact directly in a macroeconomic level of the nation. An increasing financial literacy level of rural area women make them financial independent and could also contribute in the national income as well. ...
Article
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Tharu are an ethnic group indigenous to the Terai region of Nepal stretching from east to west low-land of Nepal. The Tharu communities are normally residing in most of the districts of the Terai belt of Nepal. The paper tries to find out the relationship between financial literacy with financial attitude and financial behavior among the Tharu community women of Nepal. Hence, the paper has conducted a survey among the Tharu women living at Nawlapur District of Gandaki Province of Nepal. The paper found that Tharu women who are in a saving group, mainly focused on income saving and looking for an opportunity cost. Similarly, Tharu women associated with a saving group, are mainly concerned with the utilization of the credit, they had taken and worked for the repayment of the credit in time. The study also found that financial literacy has highly influenced financial behavior among Tharu women of Nepal. At the same time, the level of financial literacy is not seen as highly influencing the financial attitude among the Tharu women of Nepal.
Chapter
Agriculture sector employs 85% of rural women in agriculture, yet only about 13% of them possess their own land. There is empirical evidence that women have a decisive role in ensuring food security and preserving local agro-biodiversity. They contribute in every operation of agricultural activities and are also active in allied sectors like cattle management, dairying, beekeeping, goat rearing, mushroom production, poultry farming, etc. Rural women own greater responsibility for the integrated management and use of diverse natural resources to meet the daily household needs. Economic Survey 2017–18 says that with increasing migration of men, there is “feminization” of agriculture sector, number of women farmers are performing multiple roles as cultivators, entrepreneurs, laborers and dominant at all levels of production, pre-harvest, post-harvest, processing, packaging, marketing and agricultural value chain. Agriculture sector in Bihar becomes highly feminized and the situation is more worse that only 7% women are having land rights, though they play a significant and crucial role in agricultural development and allied fields. Livelihood analysis of rural women identifies a “triple burden” of work in the productive, reproductive, and social spheres. This chapter assesses factors influencing the women drudgery in agriculture sector, possible interventions and recommendation for reducing such drudgery either by use of women-friendly tools to make existing tasks easier or increasing the productivity of existing labour or even by changing farm practices with new technology, where KVK plays an important role to impart external inputs and extra knowledge and teaching new technology.Another crucial point assessed by KVK is that there is an orientation gap noticed where women and men face various challenges due to climate change and show different adaptable capacities to manage it. It was noticed that along with productivity nutrition is imperative. Nutrition-sensitive agricultural practices have to be revived. Innovative ideas like Nutrigarden and Mushroom production to promote and establish an enabling environment within health, nutrition, and accessibility of food through agricultural intervention facilitating effective implementation for food and nutritional security through diet diversity are also being promoted by KVKs. Experience and observations in the chapter show that capacity building on digital and financial literacy of women farmer and gender-specific intervention will help in accelerating their confidence and productivity to ensure rural transformation.KeywordsFeminizationFarmLabourersLivelihoodNutritionKVKs
Article
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Formal financial institutions have always been a backbone for a country's economy. Linking every individual to the formal banking sector results in effective mobilization of financial resources. This article discusses the significance of financial inclusion for Indian economy in general and for Rajasthan's economy in particular. The article is exploratory in nature and deroles the current condition of Rajasthan in terms of financial inclusiveness and recommends certain measures through which the inclusion can be fostered. The article concludes that massive awareness campaigns are required to make the Rajasthan's society aware of the available financial services. Awareness will result in increased usage of financial products.
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Purpose Studies on women entrepreneurs either view women through a structuralist lens, as marginalised populations engaged in low‐quality work, or through a neo‐liberal lens, as engaged in relatively higher quality endeavour more as a rational choice. The aim of this paper is to evaluate critically these explanations in relation to women entrepreneurs in the informal sector in India. Design/methodology/approach To evaluate the contrasting explanations of structuralist and new liberal approaches, questionnaire surveys were conducted in two phases, namely 2007 and 2010, over a period of several months. The sample design was stratified random and the sample was taken from a range of cities in different parts of India. Findings The survey of 457 women entrepreneurs of the informal sector shows that although the structuralist representation is largely appropriate for women working as waged informal employees, it is not as valid for women informal entrepreneurs working on a self‐employed basis. The results challenge the traditional understanding of the informal sector, and self‐employed women in particular, and are discussed in the light of the institutional rational choice framework. Research limitations/implications The analysis highlights how the decision of entrepreneurship does not stand in isolation from other decisions and choices, is in line with normative considerations, and is a collective rational choice for women entrepreneurs in the informal sector. This analysis is a first of its kind and calls for additional surveys to be undertaken of female (and male) informal entrepreneurs in other countries to establish this concept. Originality/value The analysis critically evaluates established explanations in relation to women entrepreneurs in the informal sector through an empirical survey and establishes new explanations on women entrepreneurship.
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Increasingly, individuals are in charge of their own financial security and are confronted with ever more complex financial instruments. However, there is evidence that many individuals are not well-equipped to make sound saving decisions. This paper demonstrates widespread financial illiteracy among the U.S. population, particularly among specific demographic groups. Those with low education, women, African-Americans, and Hispanics display particularly low levels of literacy. Financial literacy impacts financial decision-making. Failure to plan for retirement, lack of participation in the stock market, and poor borrowing behavior can all be linked to ignorance of basic financial concepts. While financial education programs can result in improved saving behavior and financial decision-making, much can be done to improve these programs' effectiveness.
Banking inclusion-A gateway to financial inclusion
  • M S Sibi
  • A A Ananth
Sibi,M. S. & Ananth, A. A. (2017). Banking inclusion-A gateway to financial inclusion. Sumedha Journal of Management, 6(1), 4-19.
Financial Literacy Survey, Indians among least financially literate people globally
  • Visa
Visa, Financial Literacy Survey, Indians among least financially literate people globally, Firstpost.com, December 2014.
It takes an entrepreneur to catch an entrepreneur
  • Y Adegoke
Adegoke, Y. (2003). It takes an entrepreneur to catch an entrepreneur. FT. Com, 1. Retrieved from https://search.proquest.com/docview/228815595?accountid=174204
Financial Inclusion in India-Journey So Far and Way Forward. Keynote Address at the Finance Inclusion Conclave
  • K C Chakrabarty
Chakrabarty, K. C. (2013). Financial Inclusion in India-Journey So Far and Way Forward. Keynote Address at the Finance Inclusion Conclave.
An analysis of the twin pillars of the banking in India: Organised by CNBC TV
  • T Agarwal
Agarwal, T. (2016). An analysis of the twin pillars of the banking in India: Organised by CNBC TV, 18.