Financial Literacy in India: Bridging the Gap between Access and Capability

India has achieved significant progress in financial inclusion, bank-account access, digital payments, and outreach programmes. However, access to formal financial products does not automatically translate into the capacity to use them safely and productively. This article examines the gap between financial access and capability in India, with particular attention to disparities by gender, geography, education and socio-economic status, and to the challenges created by digital finance. The study uses secondary evidence from the NCFE Financial Literacy and Inclusion Survey (NCFE-FLIS) 2019, the Reserve Bank of India’s published field evidence and financial-inclusion indicators, the National Strategy for Financial Education (NSFE) 2020–2025, and relevant OECD/international evidence. The analysis shows that financial literacy remains substantially below financial access and is unevenly distributed: the NCFE-FLIS 2019 reported overall financial literacy of 27%, compared with 33% in urban areas and 24% in rural areas, and 29% among men compared with 21% among women. The article argues that the next phase of financial inclusion should move beyond awareness campaigns towards measurable financial capability, combining curriculum integration, teacher capacity, targeted community delivery, digital-risk literacy, consumer protection and coordinated monitoring. Policy recommendations are prioritised and linked to implementation challenges, indicative resource requirements, timelines and measurable indicators.