Digital Financial Literacy and Its Determinants: An Empirical Evidences from Rural India

Abstract

Banking and financial institutions are undergoing a dramatic transformation in this digital age. Despite the extended digital communications, a significant proportion of the people cannot transact financially especially in rural areas. Effective financial transactions could be made possible through skills, awareness, and attitudes to use digital tools and digital transactions tools. Therefore, digital financial literacy became more critical nowadays and is considered prerequisites and preliminary steps for people's inclusion in the financial system. The determinants of digital financial literacy focus on the socio-economic demographic factors and used ordinary least square, multiple regression model. This model determines how various independent variables, namely age, gender, income, religion, social groups, family size, marital status, educational level, occupation, etc., significantly influence the respondents' digital financial literacy. The analysis is based on the primary data with five hundred samples collected from the rural areas of Aligarh district.