Financial Literacy among the Urban Poor in Punjab: Evidence, Gaps, and Policy Imperatives

By : Manish Jain, Pawan K. Taneja, A. K. Vashisht

Page No: 146-157

Abstract
This paper examines the level of financial literacy and inclusion among the urban poor in Punjab, India, with a specific focus on the Bottom-of-the-Pyramid (BOP)
households earning less than ₹20,000 per month. Employing a descriptive research design and a multi-stage sampling strategy across urban areas in ten districts, the study surveyed 500 respondents using a structured questionnaire based on internationally recognised financial literacy parameters. The analysis reveals a critical gap in financial awareness, with over 71 per cent of respondents scoring low on essential financial concepts, including inflation, interest compounding, the time value of money, and diversification. The findings highlight the role of socio-economic determinants—particularly low educational attainment, informal employment, and limited digital access—in perpetuating financial exclusion. The study underscores that inadequate financial literacy not only restricts informed decision-making but also hinders the effective utilisation of formal banking services and government welfare schemes. Drawing on global frameworks and national financial education strategies, the paper proposes targeted, gender-sensitive, and digitally enabled interventions to enhance financial literacy. The study contributes to the literature by offering empirical insights and policy recommendations relevant to both scholars and practitioners in the field of urban financial inclusion.

Authors
Manish Jain, Ph.D. Scholar, Maharaja Agrasen University, Baddi, HP.
A. K. Vashisht, Director, School of Management, Maharaja Agrasen University, Baddi, HP.
Pawan K. Taneja, Faculty, Indian Institute of Public Administration, New Delhi.
 

DOI: https://doi.org/10.32381/NL.2025.57.02.2