Introduction: With the growth of information and communication technology there have been emergence new avenues in the form of fintech that are providing innovative ways to digital financial inclusion. These avenues are gaining popularity among the vulnerable and financially exclusive section of the society. Financial inclusion is enabled by the financial literacy and the fintech usage. However, both financial literacy and fintech usage are not two separate dimensions, there exist an interrelationship between them.Methodology: for the purpose of the study primary data was collected from the urban areas of the Bhopal region from 126 respondents through scheduled interview method. To analyse the data various statistical tools like correlation analysis and regression analysis were used and finally the interrelationship between the financial literacy and financial usage was studied in the context of important parameters.Results: Among the various demographic and financial behaviour related parameters taken in the study those found significant were age, sex, education, nature of account, average monthly income and number of bank visits.Conclusion: There is a need to adopt demographic segmentation approach in studying the financial literacy and fintech usage relationship on different positions.  The various policy recommendation moves in the short term includes organizing camps, customization and simplification of the mobile applications, leveraging peer group to promote the financial literacy. In the long-term policy must focus on bridging the digital gender gap and making financial literacy as an inclusive part of general literacy.