Published Online:October 2024
Product Name:The IUP Journal of Accounting Research & Audit Practices
Product Type:Article
Product Code:IJARAP091024
Author Name:Anushree D Kini, Smita Nadiger, Mahesh Vanjeri, Jayadatta S and R R Kulkarni
Availability:YES
Subject/Domain:Finance
Download Format:PDF
Pages:190-220
The paper examines the intricate relationship between financial literacy (FL) and use of digital transactions in rural economies through empirical research, specifically focusing on its role in economic empowerment. The study has three primary goals: to assess the extent of FL among individuals residing in rural areas, encompassing both traditional financial knowledge and digital FL; to analyze the patterns of adopting digital transactions, considering factors such as frequency of usage, perceived behavior and risk (PBR), and trust in digital platform (TDP); and to investigate the ensuing economic empowerment outcomes associated with adoption of digital transactions in rural economies, including improved access to financial services and overall economic wellbeing. The study employs a comprehensive array of statistical tools: descriptive statistics, including mean, median and standard deviation, provide an initial overview, while correlation analysis examines the relationship between FL components and digital transaction adoption. Regression analysis is employed to find out the reasons for acceptance of digital transactions. Structural equation modeling (SEM) enables a detailed examination of the intricate relationship between FL, digital FL, adoption of digital transactions and economic empowerment. The study employs a mixed-methods approach to offer valuable insights and recommendations to policymakers, financial institutions and educators.
Financial literacy (FL) is crucial for improving socioeconomic standards and empowering individuals and communities. It involves understanding the fundamental financial principles and having the skills to manage finance effectively.