Impact of Digital Finance Literacy on Rural Households’ Adoption Behaviour

Digital finance literacy and digital finance adoption are considered the two sides of a coin for digital financial inclusion. They are directly proportional to each other. Rural households’ digital finance literacy played an important role in determining their digital finance access and adoption behaviour. The present study focuses on finding out the impact of rural households’ digital finance literacy and their digital finance adoption. A multistage sampling technique was employed to collect the sample data. The structural equation modeling technique is employed to find out the relationship between rural households’ digital finance literacy and their adoption behaviour. Factor, cluster, and discriminant analyses are used to find out the most significant digital finance literacy factor that contributed to the rural households’ digital adoption behaviour. Findings of this study recommended that there exists a strong positive relationship between rural households’ digital finance literacy and their adoption behaviour. Further discriminant analysis revealed that information literacy has played a crucial role in influencing rural households' digital adoption behaviour.