Financial Literacy and the Right to Information in Financial Services

Financial literacy and the Right to Information (RTI) play a crucial role in ensuring transparency, accountability, and consumer empowerment within financial services. In India, the expansion of banking, insurance, capital markets, and digital financial platforms has increased consumer participation while simultaneously intensifying information asymmetry and complexity. Financial literacy equips individuals with the knowledge and skills required to understand financial products, assess risks, and make informed decisions, whereas the RTI Act, 2005 provides a legal mechanism to access information from public authorities, including financial regulators and public sector financial institutions. This study examines the interrelationship between financial literacy and the right to information in the Indian financial services sector. Using a descriptive and analytical research design, the paper draws upon theoretical perspectives of information asymmetry and consumer protection, supported by an extensive review of academic literature, regulatory reports, and policy documents. The study finds that financial literacy initiatives alone are insufficient unless complemented by transparent, accessible, and comprehensible information disclosure practices. Limited awareness of RTI provisions among financial consumers further constrains the effective use of information rights. The paper concludes that integrating financial education with strengthened information disclosure and transparency frameworks is essential for enhancing consumer confidence, reducing exploitation, and promoting inclusive and sustainable financial development in India.