CHALLENGES OF FINANCIAL LITERACY FOR INCLUSIVE GROWTH: EVIDENCE FROM TRIBAL COMMUNITIES IN KERALA

Financial literacy is a critical factor in promoting financial inclusion, particularly among marginalized groups. Recognizing its importance, the Reserve Bank of India and the Government of India have launched several initiatives to promote financial awareness nationwide. Despite these efforts, substantial sections of the population remain unfamiliar with essential financial concepts required for informed saving and investment decisions. This gap has profound implications for household savings, retirement planning, and overall economic stability. This study examines the level of financial literacy among tribal communities in Wayanad District, Kerala, which is home to the most significant tribal population in the state. Adopting a descriptive research design, both primary and secondary data were used for analysis. Primary data were collected from three major tribal groups—Paniyas, Kurichyas, and Adiyas—through structured interviews, with 50 respondents from each community (total sample = 150). The findings reveal that financial literacy among the tribal communities remains significantly low. Awareness is primarily limited to basic financial services, such as bank deposits and loans, while knowledge of more advanced financial products—including insurance, mutual funds, and stock markets—is limited. Sub-group analysis shows significant differences in literacy levels among communities, with Kurichyas performing better than Adiyas and Paniyas. These results underscore the urgent need to strengthen financial literacy programs tailored to marginalized communities, ensuring inclusive participation in India's formal financial system.