What is The Impact of Financial exclusion and the lack of financial literacy on STs in India and globally ? 

Financial exclusion and a lack of financial literacy are major barriers to poverty reduction and social justice in India. According to the National Centre for Financial Education, 76% of Indian adults do not understand basic financial concepts, such as interest rates, inflation, and risk diversification. This lack of financial awareness and skills limits their ability to access formal financial services, such as bank accounts, credit, insurance, and pensions, and exposes them to exploitation and fraud by informal moneylenders and intermediaries. Financial exclusion and illiteracy also prevent them from making informed financial decisions and planning for their future needs. One of the most vulnerable groups in India are the Scheduled Tribes (STs), who constitute 8.6% of the population and mostly live in rural and forest areas. The STs face multiple forms of discrimination and exclusion, based on their ethnicity, culture, religion, and geography. They have lower levels of literacy, education, health, and income than the national average. They also have limited access to land, natural resources, and public services. According to the World Bank, 43% of the STs live below the poverty line, compared to 21% of the general population . The STs are also financially excluded and illiterate, as they have low awareness and trust of formal financial institutions and products. According to the Global Findex 2017 Report, only 67% of the STs have a bank account, compared to 80% of the general population3. Moreover, only 10% of the STs have access to formal credit, compared to 18% of the general population. The STs rely heavily on informal sources of finance, such as moneylenders, relatives, and friends, who often charge exorbitant interest rates and impose harsh repayment conditions. The STs also have low coverage of insurance and pension schemes, which leaves them vulnerable to shocks and uncertainties. Financial exclusion and illiteracy not only perpetuate the poverty and marginalization of the STs, but also deprive them of their dignity and rights. The STs are often exploited and cheated by unscrupulous agents and middlemen, who take advantage of their ignorance and desperation. The STs are also excluded from participating in the economic and social development of the country, as they have limited opportunities and choices to improve their livelihoods and well-being. Financial inclusion and literacy are therefore essential for empowering the STs and enabling them to achieve their full potential.