This study aims to assess the financial literacy (FL) level among Indian Muslims. Moreover, the effort was also directed towards determining the various factors affecting such FL.
Secondary data on 5,247 respondents from the Financial Inclusion Insight 2017 database was used. FL was measured based on the Standard and Poor’s Global FinLit survey questions. The study used the generalised structural equation model along with relevant statistical and econometric methods.
The level of FL amongst the Muslims in India was noticed to be poor and highly heterogeneous. Age, marital status, gender, occupation, educational attainment, location, family size, financial inclusion and economic status emerged as the determinants of such FL.
The exploration of FL and the underlying determinants amongst the Indian Muslims has received limited attention in the extant scholarship considering their socio-economic backwardness. In addressing this research gap, to the best of the authors’ knowledge, the study attempts to provide a comprehensive insight into such aspects using a large sample of Indian Muslims for the first time.
