RBI announces National Strategy for Financial Education 2020-2025 - (20 Aug 2020)

Banking

In order to strengthen financial inclusion in the Country, RBI announces National Strategy for Financial Education 2020-2025 (NSFE). Financial literacy supports the pursuit of financial inclusion by empowering the customers to make informed choices leading to their financial well-being. The NSFE document intends to support the Vision of the Government of India and Financial Sector Regulators by empowering various sections of the population to develop adequate knowledge, skills, attitude and behaviour which are needed to manage their money better and plan for their future. The Strategy recommends adoption of a Multi-Stakeholder Approach to achieve financial well-being of all Indians.

For achieving the vision of creating a financially aware and empowered India, it is necessary to inculcate financial literacy concepts among the various sections of the population through financial education. Further, the strategy aims to encourage active savings behaviour and participation in financial markets to meet financial goals and objectives. Digital financial services are to be used in a safe and secure manner. People should avail credit from formal financial institutions as per requirement.

In order to achieve the Strategic Objectives, the document recommends adoption of a ‘5 C’ approach for dissemination of financial education through emphasis on development of relevant Content (including Curriculum in schools, colleges and training establishments), developing Capacity among the intermediaries involved in providing financial services, leveraging on the positive effect of Community led model for financial literacy through appropriate Communication Strategy, and lastly, enhancing Collaboration among various stakeholders. The Strategy also suggests adoption of a robust ‘Monitoring and Evaluation Framework’ to assess the progress made under the Strategy.

Tags : FINANCIAL INCLUSION NSFE ANNOUNCEMENT