Sukhendra Choudhary
Commerce
July 2025
The review paper examines social-economic factors on saving and investing behaviors in the rural communities of Rewa and how income levels, education, occupation, household demographics, gender norms, financial literacy and access to institutions contribute to financial behavior. Focusing on the most important economic theories (the Life-Cycle Hypothesis, Permanent Income Hypothesis, and behavioral economics), the research points out that classical models cannot be applied quite well in the rural economy where income regularities are not as high as, or the operating system is socio-culture-bound. It contrasts the informal and formal financial practices with the contrasting trust as promoted through community-based informal systems and the legality coupled by scale from formal institutions. With the strides in step 4, barriers, including financial exclusion, a trust shortfall, a digital divide, and a gap in custom financial products, still exist. Such policy initiatives as the Pradhan Mantri Jan Dhan Yojana (PMJDY), Direct Benefit Transfers (DBTs) and financial literacy campaigns are discussed with the view to analyzing their contribution to these challenges.
12- 27
© Airo Journals 2021
