Corporate social responsibility and financial literacy in India:
Initiatives and impact

Corporate Social Responsibility (CSR) in India, particularly when focused on financial literacy, plays a pivotal role in bridging the gap between underserved communities and the formal financial sector.

Key aspects of CSR financial literacy initiatives

Targeted Outreach: Programs focus on specific audiences like women in self-help groups (SHGs), youth, farmers, migrant workers, and small vendors, tailoring content and delivery methods to their unique needs.

Comprehensive Curriculum: Training covers essential topics such as budgeting, saving, loans, insurance, investments, digital payments, cyber safety, government schemes, and financial planning.

Diverse Delivery Methods: Initiatives leverage workshops, school tie-ups, app-based training, one-on-one counseling, street plays, camps, and mobile vans to reach beneficiaries across various regions.

Focus on Behavioral Change: Programs aim not only to impart knowledge but also to transform financial behaviors, encouraging adoption of formal financial services and responsible financial practices.

Emphasis on Digital Financial Inclusion: Initiatives promote the safe use of digital payments (like UPI), mobile banking, and online financial services, particularly among populations with lower digital literacy.

Government Scheme Integration: CSR programs often align with government initiatives like Jan Dhan Yojana, PM SVANidhi, and Digital India, facilitating access to and utilization of welfare schemes through financial literacy and inclusion efforts.

Sustainable Impact: Companies aim for long-term impact by fostering financial independence, particularly among women, and contributing to the economic resilience of local communities.

Partnerships and Collaboration: CSR financial literacy initiatives often involve collaborations with NGOs, foundations, government bodies, and academic institutions, leveraging expertise and resources for greater impact.

Examples of CSR financial literacy activities

HDFC Bank’s “Parivartan” program: Focuses on holistic development including financial literacy, teacher training, and scholarships.
L&T Finance’s “Digital Sakhi” project: Empowers rural women with digital and financial literacy, sparking entrepreneurship.

CNH Industrial Capital’s Financial Literacy Program: Educates farmers in Haryana and Uttar Pradesh on financial literacy, farm mechanization, and government schemes.

Home Credit India’s “Saksham” initiative: Aims to impart basic financial education to marginalized women and girls.

ICICI Foundation’s Financial Literacy and Credit Counselling Centre (FLCC) or Disha Trust: Increases awareness of financial products and educates on decision-making regarding these products.

AU Small Finance Bank’s Financial & Digital Literacy (F&DL) program: Aims to make financial services accessible to rural and urban populations, bridging the digital divide.

IIFL Foundation’s Financial Inclusion Centers: Focuses on women’s participation in household financial planning, encouraging savings, investments, and availing government schemes.

Spherule Foundation’s Financial Literacy Model: Organizes awareness sessions and workshops on financial concepts and skills, with a special focus on women.

Impact and recognition

In 2025, financial literacy projects were explicitly included as eligible CSR activities under promoting education and vocational skills in Schedule VII of the Companies Act, 2013.

CSR initiatives in financial inclusion align with national priorities such as Pradhan Mantri Jan Dhan Yojana (PMJDY), PM SVANidhi, and Digital India.
Projects are often aligned with Sustainable Development Goals (SDGs) like Quality Education (SDG 4) and Reduced Inequalities (SDG 10).

Studies show a positive impact on participants’ financial behavior, including increased bank account ownership, adoption of digital payment methods, and savings investments.

Conclusion

By investing in and implementing well-designed financial literacy and inclusion programs, companies in India are demonstrating a commitment to creating positive social change while meeting their CSR obligations. These initiatives are not merely about compliance but are strategically aligned with national development goals and aim to create lasting impact for individuals, communities, and the broader economy.”