Couple of years before economic development was observed as all-inclusive growth in our country.

Over 69% of the population lives in villages with no basic infrastructure facilities. Even though government is emphasizing for the balanced regional development, the rural people are deprived of the basic facilities and have no major role to contribute to the economic development of the nation and when the economists saw the difference of the development figures not matching with the rural development figures, government realized the importance of extending financial depth and financial breath and launched the campaign of financial inclusion. Financial inclusion is not about giving credit and number of bank accounts held by the weaker section of the society, it also includes rendering of financial and banking services to the unreached urban society. This mainly includes savings accounts, insurance, and remittance products at an affordable cost to the vast sections of the disadvantage and lower income groups. This must ensure the access, availability and usage of financial system for all, inclusive in terms of people geographical location and sectors. Safe living, affordable cost of loan to the poor and low income household including, micro, small and medium enterprise and appropriate insurance and payment services can help people to enhance incomes, build capital, manage their risk and can help them come out of poverty. The model of Financial Literacy was first formulated and communicated to the banks in 2009. The main objective of this model scheme is to provide free financial literacy and credit counseling. The specific objective of the scheme is educating people in rural areas with regard to various financial products and services. They also literate the people regarding the security features in the currency notes, detection of the forged notes and making people aware of the advantage of being connected with the banking sector. Legally the finance literacy and credit counseling should not act as an investment advice center or marketing center for products of any particular banks, but it should act as a tool for achieving better financial inclusion.

Objectives of the study 1. To understand if there is a difference in the financial literacy level of the people in town and village 2. To study the correlation between financial literacy and financial inclusion 3. To understand if the banks are educating the people regarding the banking services and products 4. To compare the financial literacy level among the various section of the educated in the rural areas 5. To develop a model for imparting financial literacy programme in rural areas

Methodology for the study 1. Place of study a. The place of study is Madikeri town taking it as base for financial literacy of the people b. A small village in the rural area of the kodagu district for comparing the literacy level 2. Collection of data a. The collection of the data is through primary source. Survey method will be adopted and a questionnaire will be given to the people in the town and village for understanding their literacy level. b. There will be no usage of secondary data for the study