Abstract:

Access to finance at a reasonable cost is treated as financial inclusion at a primary level. Access, availability, and usage of financial instruments can penetrate financial inclusion. After Jan Dhan Yojana, access to bank accounts increased. Indian could able achieve 100% financial inclusion in terms ownership of bank accounts. After a tremendous success of financial inclusion, stakeholders are focusing on effective financial inclusion. Financial literacy can be used a lethal weapon in achieving effective financial inclusion in India. Financial literacy can be assessed with the help of financial knowledge, attitude, and behavior. The current study discusses about the concept of financial inclusion, literacy, and relationship of financial inclusion nd financial literacy, level of financial literacy and financial inclusion and the impact of financial literacy on investment decisions of financially included population. The study is empirical in nature and 100 samples are collected from Tumakuru Districts of Karnataka. Random sampling adopted to collect samples and structured schedules used to collect data from target households. The study find that the level of financial literacy in Tumakuru is more than national average, there is a strong relationship between financial literacy and financial inclusion and there is a substantial impact of financial literacy on investment on financially included population.

Keywords: Financial Inclusion, Financial Literacy, Investment Decisions, Households, Risk, and Return, Investment Objectives