Financial Inclusion and Financial Literacy undoubtly are among the buzzwords originated in India with the beginning of the 21st century and reached the vocabulary of social, economic, and political world of the country in a quick way. The economic status of India requires capital formation via saving and investment, with a view to achieve this aim a properly planned, promoted, and channelized pattern of investment among the rural households are required. To achieve higher rate of growth coupled with relative price stability, the propensity to save needs to be raised by proper policies and incentives. Truly speaking, Financial Literacy talks about the possession of knowledge and the set of skills that enable the people to make well informed and effective financial decisions within the ambit of their financial resources. Financial Literacy, as such, is understanding an education of different financial areas related to the management of personal finance, money and investing etc. In simple words, financial Literacy can be defined as measuring how well an individual understands and uses personal finance related information. Both Financial Literacy and Financial Knowledge are regarded as human capital. But Financial Literacy carries an additional application dimensions which implies that an individual must have the ability and confidence to use his/her financial knowledge to make financial decisions. Financial education is merely an input intended to increase a person’s human capital, specifically financial literacy. A well-designed financial literacy instruments that adequately captures personal finance knowledge and application is expected to provide insights into how well financial education improves the human capital required to behave appropriately to enhance financial well- being. In this paper financial literacy assistance to financial inclusion has been calculated with special reference to north coastal Andhrapradesh.