Investigating the Role of Financial Literacy in Promoting Financial Inclusion Among Rural Households: A Gender Gap Analysis

This study examines the role of financial literacy (FL) in promoting financial inclusion (FI) among households in the Cachar district, Assam, with a specific focus on gender disparities. Primary data were collected from 111 respondents using structured questionnaires and schedules to assess household-level FL and FI. This study also examines gender-based inequalities and explores how FL facilitates improvements in FI among households. Composite indices were developed to measure FL and FI using percentage-correct scores, and statistical methods, such as t-tests and regression analyses, were employed to investigate gender disparities and the relationship between FL and FI. The results demonstrate low FL and FI levels, alongside a significant gender gap among households. The findings of the present study confirm the positive and significant impact of FL on FI. Furthermore, in addition to FL, demographic variables such as education, income and access to technology emerged as key drivers of FI among households. However, this study acknowledges its limitations, including a localised scope and reliance on self-reported data, highlighting the need for further research. The findings emphasise policy measures, including targeted FL initiatives, improved financial infrastructure and digital tools to address gender gaps.