Asian Journal of Economics, Business and Accounting

This study examines the relationship between financial literacy, behavioural biases, and the use of formal financial services among tribal households in Gumla district, Jharkhand. A descriptive and exploratory design was employed. Primary data were collected from 60 households across Chainpur, Bishunpur, and Gumla Sadar through a structured questionnaire, field observations, and semi-structured interviews, supplemented by official secondary sources. Financial literacy was assessed using a 10-item instrument and classified as low, medium, or high. The results show that 36.7% of households had low financial literacy, 46.7% had medium literacy, and 16.6% had high literacy. One-quarter reported irregular account use, while 40% expressed fear of making financial mistakes and 60% preferred cash for routine transactions. More than half relied on Self-Help Groups or community leaders for financial advice. Only 35% used mobile banking or digital payments. A marked gender difference was observed: 90% of women reported low digital confidence, compared with 40% of men. The findings indicate that account ownership alone does not ensure effective financial participation. Formal financial service usage is associated with the interaction of literacy, confidence, behavioural tendencies, gender, and income regularity. Meaningful inclusion therefore requires community-based and gender-sensitive interventions that combine practical financial education, digital confidence-building, simplified procedures, and trusted local support.