In the increasingly complex financial markets of today, financial literacy is being regarded as a crucial life skill. Financial literacy plays a vital role in generating demand for financial inclusion initiatives of government and contributes to the broader goal of social inclusion and sustained development. The present study is designed to measure the financial literacy level of higher education institutions in India and identify the sociodemographic factors affecting the level of financial literacy. The study was a survey based study conducted on 1064 students belonging to India's premier Central University, University of Delhi. The survey instrument was uniquely designed to measure financial literacy of youth through questions based on financial knowledge and financial awareness. The results revealed medium levels of financial literacy. The results showed that male students have higher levels of financial literacy. Commerce students display a higher level of financial literacy in comparison to arts and science students. A significant positive correlation is observed between financial literacy and financial behaviour. The present study identifies key areas such as banking sector, interest rates, inflation and investment where students lag behind and policy makers need to focus.