State-Wise Financial Literacy in India with Special Reference to Maharashtra: An Empirical Analysis Using Behavioural Financial Indicators

Financial literacy is widely recognised as a key driver of financial inclusion, household welfare, and sustainable economic participation (Lusardi & Mitchell, 2014; OECD/INFE, 2022). In emerging economies experiencing rapid digital transformation, behavioural financial capability plays a crucial role in determining how effectively individuals engage with formal financial systems (World Bank, 2021; RBI, 2020). This study examines state-wise financial literacy patterns in India, with special analytical focus on Maharashtra, using behavioural indicators derived from the NSS 77^th Round (All India Debt and Investment Survey, 2019) (Dash & Ranjan, 2023).

Financial literacy is operationalised through ownership and usage of deposit accounts, debit/credit cards, and e-wallets, forming a composite Financial Literacy Index (FLI). The study adopts a descriptive–analytical research design supported by inferential statistical tools, including independent sample t-test, chi-square test, and logistic regression inference, to evaluate rural–urban differences and behavioural relationships between literacy, digital adoption, and formal financial participation (OECD/INFE, 2022; Lusardi, 2019).

Results indicate that Maharashtra belongs to the medium financial literacy tier, with urban FLI (0.44) slightly higher than rural FLI (0.42). Rural Maharashtra is dominated by elementary literacy, reflecting basic banking inclusion but limited digital capability, while urban areas show stronger moderate and advanced literacy. Hypothesis testing confirms statistically significant rural–urban differences and a strong positive association between literacy and digital financial adoption. The study concludes that despite Maharashtra’s advanced economic profile, financial capability disparities persist, necessitating targeted financial education strategies aligned with national initiatives such as NSFE 2020–2025 (NCFE, 2020).