Journal of African Development

Financial inclusion has been found to be an urgent policy of inclusive economic development, especially in rural India where formal financial services access is skewed. This paper will discuss financial literacy as a major factor that determines financial inclusion among rural households in Jharkhand. The study is grounded on primary data obtained through the use of structured questionnaire comprising 60 respondents on a Likert scale. The research design is descriptive and the statistical tests including the percentage analysis and regression analysis using SPSS are used to investigate the relationship between the variables. The results show that there is a moderate positive relationship between financial literacy and financial inclusion that is statistically significant. The regression analysis indicates that the financial literacy level explains 33.8 percent of the variation in financial inclusion, which is significant in determining the financial behaviour. Demographics indicate that financial inclusion differs in relation to education, occupation and gender. The research points to the fact that the effective use of banking services, digital payments, and financial schemes can be improved through financial knowledge. It concludes that financial literacy is an important element that facilitates financial inclusion and curbs economic inequalities in rural communities. The results can offer helpful data to policymakers to create specific financial education frameworks and enhance financial ecosystems in the rural areas..