The Reserve Bank of India has released a national strategy for financial education to be implemented in the period of 2020-2025. The multi-stakeholder led approach is aimed at creating a financially aware and empowered India.
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Key-Points
It has been prepared by the National Centre for Financial Education (NCFE) in consultation with all the Financial Sector Regulators (RBI, SEBI, IRDAI and PFRDA), DFS and other Ministries of Govt. of India and other stakeholders under the aegis of the Technical Group on Financial Inclusion and Financial Literacy under the Chairmanship of Deputy Governor, RBI.
The objectives include managing risk at various life stages through relevant and suitable insurance cover besides planning for old age and retirement through coverage of suitable pension products.
The strategy seeks to develop credit discipline and encourage availing of credit from formal financial institutions as per requirement.
The document wants management of risk at various life stages through relevant and suitable insurance cover and plan for old age and retirement through coverage of suitable pension products.
It has recommended a ‘5 C’ approach for dissemination of financial education in the country. These include-
- Emphasis on development of relevant content in curriculum in schools, colleges and training establishments.
- Developing capacity among intermediaries involved in providing financial services.
- Leveraging the positive effect of community-led model for financial literacy through appropriate communication strategy.
- Enhancing collaboration among various stakeholders.
