In literature, “point of view” refers to

In a story, Point of view is important because it helps the reader understand the characters’ feelings and actions. Each character will have his or her own perspective, so whoever is telling the story will impact the reader’s opinion of other characters and events.

Important Points

'Point of view' (POV) is what the character or narrator telling the story can see (his or her perspective).

• The author chooses “who” is to tell the story by determining the point of view.
• Depending on who the narrator is, he/she will be standing at one point and seeing the action.
• This viewpoint will give the narrator a partial or whole view of events as they happen.
• Many stories have the protagonist telling the story, while in others, the narrator may be another character or an outside viewer, a narrator who is not in the story at all.
• The narrator should not be confused with the author, who is the writer of the story and whose opinions may not be those written into the narrative. 

Thus, we can conclude that In literature, “point of view” refers to who is telling the story.