“Inclusive growth, which is our objective, requires the participation of everyone, rich or poor, in the growth process and sharing the growing prosperity,” Chidambaram added. With India’s growth increasingly becoming investment driven, it is important to make potential savers and investors “financial literates” so that more people can contribute to the country’s economic growth, the finance minister said.

He explained that financial literacy is the ability to make informed judgements and take effective action on the current and future use of money and the ability to manage money. It is these skills that will enable an individual to save, borrow, invest and manage financial affairs prudently, he noted, pointing out that several developed nations are making efforts to promote financial literacy.

The finance minister observed that the process of inclusive growth will be strengthened if more individuals participate in financial markets. The spread of financial literacy will increase such participation and influence investment decisions, he added.

For financial literacy to have a significant impact, its spread should begin right from Classes XI and XII and the media should devote space and time for it, Chidambaram said. He made it clear that the objective of the course would not be to make financial pandits but to make people financially literate — to help investors and help in the nation’s growth.

“It is my firm belief that Mumbai University will be central to the emergence of the nation’s commercial capital as a global centre for finance and commerce,” he noted.

Believe it or not!

• Half of India's 12 crore farm households have never borrowed from a bank or FI

• Half of India's 32.1 crore paid workers do not have access to banking or financial services

• Only 53 lakh of 32.1 crore paid workers invest in MFs, 43 lakh invest in equities

• Moneylenders' share in rural lending rose between 1991 and 2003

• Total life insurance policies (as on March 31, 2007) was 22 crore, total number of non-life insurance policies was 5.75 crore

• Only 60% urban households, 40% rural households have a bank account

• Most Canadians feel choosing right investment is more stressful than visiting a dentist

• Only 28% Australians understand the concept of compound interest

• Most Britons do not seek out financial information

• Most Korean high-school students failed in a credit card management test

• Four out of 10 US workers are not saving for retirement