FINANCIAL INCLUSION &
FINANCIAL LITERACY
THE INDIAN MODEL
Bipin Nair
Reserve Bank Of India
OECD/Thailand Seminar on Financ...
India- Some facts
Geographical area – 7th in the world -Widely dispersed terrain
Population – 2nd in the world–1.2 billion...
Financial Inclusion & Financial Literacy
An Integrated Approach
AWARENESS
KNOWLEDGE
BEHAVIOUR
ACCESS
(SAVING, REMITTANCE,
...
Financial Literacy
• Improve financial access through
financial educationObjective
• Villages and unbanked pockets in urba...
Institutional Mechanism
1113 Financial Literacy Centers
Banks- Public & Private Sector, Regional Rural Banks-
100 Thousand...
IMPLEMENTATION
Literacy to be synced with access- Enrollment in Literacy Camps
Messages for Unbanked audience-Related with...
National Strategy for
financial education
National Strategy for Financial Education prepared-
under the aegis of Technical...
Financial Literacy Material
Basic Concepts for unbanked Audience- Hindi and
English- recently released in regional languag...
Financial Literacy Material
Financial Literacy
Guide-Trainer’s
Guide
5 Sections-
50 Questions
Financial Diary- For distrib...
Design of Literacy Camps
• Annual calendar- Advance publicity-Involvement of
Local Government authorities, prominent perso...
PROGRESS OF FINANCIAL LITERACY
ACTIVITIES UNDERTAKEN BY BANKS
1113 Financial Literacy Centres operational throughout the c...
FIP Progress - March 2014
12
Particulars Year ended Year ended Year ended Progress
March 2010 March 2013 March 2014 April ...
6
pillars
Universal Access to
banking facilities
Basic Accounts
with O/D facility
and RuPay Debit
card
Financial
Literacy
...
14
Trinity to make Financial Stability Possible –
The ultimate objective
Financial
Stability
Financial Literacy
Financial ...
Financial Literacy for un-banked
Financial Literacy Centre - Awareness camp Literacy drive by RBI
Accounts opened in camps...
Catching them young
Children learning to operateOpening accounts for children
Curious to know more about banksFinancial Li...
Thank YOU
bipinnair@rbi.org.in
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Nair infe oecd conference -bangkok-thailand-rbi

Published on: Mar 3, 2016
Published in: Economy & Finance      
Source: www.slideshare.net


Transcripts - Nair infe oecd conference -bangkok-thailand-rbi

  • 1. FINANCIAL INCLUSION & FINANCIAL LITERACY THE INDIAN MODEL Bipin Nair Reserve Bank Of India OECD/Thailand Seminar on Financial Inclusion and Financial Literacy in Asia December 2014
  • 2. India- Some facts Geographical area – 7th in the world -Widely dispersed terrain Population – 2nd in the world–1.2 billion By nominal GDP – 10th largest economy in the world 30 States and 6 Union Territories, 673 districts,600 thousand Villages Multilingual and multiethnic society Low level of General Literacy – (74% in 2011; FEMALE-65%), Large no. of Financially excluded people (more than 50%)
  • 3. Financial Inclusion & Financial Literacy An Integrated Approach AWARENESS KNOWLEDGE BEHAVIOUR ACCESS (SAVING, REMITTANCE, CREDIT -CONSUMPTION & BUSINESS) FINANCIAL INCLUSION 3
  • 4. Financial Literacy • Improve financial access through financial educationObjective • Villages and unbanked pockets in urban locationsFocus • Multi Agency-Partnership with Government & other stakeholdersApproach • FSDC - Technical Group on FI&FL - Financial sector regulators, Government, Education Boards, Curriculum Developers as membersGuidance
  • 5. Institutional Mechanism 1113 Financial Literacy Centers Banks- Public & Private Sector, Regional Rural Banks- 100 Thousand branches 36 State Level Bankers’ Committees , 673 Lead District Managers Reserve Bank of India- Financial Inclusion Advisory Committee A Separate Technical Group on Financial Inclusion and Financial Literacy- All financial sector regulators, Government Financial Stability Development Council (FSDC) – Headed by Finance Minister- Mandated to focus on Financial Inclusion & Financial Literacy
  • 6. IMPLEMENTATION Literacy to be synced with access- Enrollment in Literacy Camps Messages for Unbanked audience-Related with real life events- Pictorial form- Lucid manner-Simple language Standard curriculum for basic conceptual understanding- Financial Literacy Material prepared FLCs (1000+) - Rural Branches)(45000+) – Conduct Literacy Camps –Once in a month - Financial Literacy Material Existing institutional Set up : Public & private sector banks
  • 7. National Strategy for financial education National Strategy for Financial Education prepared- under the aegis of Technical Group on FI & FL Improve Financial access through Better Financial education-Focus on inclusion of financially excluded people in villages, Unbanked pockets in urban areas Develop standard contents to be used as Financial Literacy Material Conduct Nation Wide Survey to assess the Status Setting up of a National Centre on Financial Education Financial Education to be included in the School Curriculum – Class VI to Class X Multi Agency Approach- Partnership with Government & other stakeholders
  • 8. Financial Literacy Material Basic Concepts for unbanked Audience- Hindi and English- recently released in regional languages Available on RBI Website http://www.rbi.org.in/financialeducation/Financial LiteracyGuide.aspx Financial Literacy Guide- 5 Sections- 50 Questions- Money Management, Savings, Saving with banks, Borrowings, Borrowing from banks Ready Reckoner for trainers Financial Diary- For distribution to target audience - Financial planning- Record income and expenses- Weekly/Monthly/Yearly Set of 16 posters-Pictorial Communication- Appealing Slogans 8
  • 9. Financial Literacy Material Financial Literacy Guide-Trainer’s Guide 5 Sections- 50 Questions Financial Diary- For distribution to target audience Facilitate Financial Planning Record income and expenses- Weekly/Monthly/ Yearly Set of 16 posters- Basic Messages Pictorial Communication- Appealing Slogans Basic Concepts for unbanked Audience- Hindi and English and 11 regional languages. Available on RBI Website http://www.rbi.org.in/financialeducation/FinancialLiteracyGuide.aspx
  • 10. Design of Literacy Camps • Annual calendar- Advance publicity-Involvement of Local Government authorities, prominent persons, NGOs, etc, Maintain a Database of participants 3 sessions- 2 hrs each- Spread over three months • Understanding of Basic financial concepts • Financial Planning –How to use financial diary • Concept of door step banking ( Branchless) First Session • Introduction -Business Correspondent (BC) • Services available through BC • Demo of ICT device - Modus operandi • Account Opening Second Session-Fortnight after first session • Timely delivery of smart cards • Start of BC operations Visit - 15 days after second session-To ensure • Feedback from villagers & BC • Review usage of accounts – Solve operational issues at site Third Session-2 months after second session Follow up transaction levels- Regular Reporting system
  • 11. PROGRESS OF FINANCIAL LITERACY ACTIVITIES UNDERTAKEN BY BANKS 1113 Financial Literacy Centres operational throughout the country 128,736 financial literacy activities conducted 6.8 million people educated
  • 12. FIP Progress - March 2014 12 Particulars Year ended Year ended Year ended Progress March 2010 March 2013 March 2014 April 2013 - March 2014 1 2 3 4 5 Banking Outlets in Villages – Branches 33,378 40,837 46126 5289 Banking Outlets in Villages – Branchless Mode 34,316 2,27,617 337678 110061 Banking Outlets in Villages –Total 67,694 2,68,454 383804 115350 Urban Locations covered through BCs 447 27,143 60730 33587 Basic Savings Bank Deposit A/c through branches (No. in million) 60.19 100.80 126.03 25.23 Basic Savings Bank Deposit A/c through branches (Amt. in Rs. billion) 44.33 164.69 273.29 108.60 Basic Savings Bank Deposit A/c through BCs (No. in million) 13.27 81.27 116.93 35.66 Basic Savings Bank Deposit A/c through BCs (Amt. in Rs. billion) 10.69 18.22 38.95 20.73 BSBDAs Total (No. in million) 73.45 182.06 242.96 60.90 BSBDAs Total ( Amt. in Rs. billion) 55.02 182.92 312.25 129.33 OD facility availed in BSBDAs (No. in million) 0.18 3.95 5.92 1.97 OD facility availed in BSBDAs (Amt. in Rs. billion) 0.10 1.55 16.04 14.49 KCCs – (No. in million) 24.31 33.79 39.94 6.15 KCCs – (Amt. in Rs. billion) 1240.08 2622.98 3684.49 1061.51 GCC- (No. in million) 1.39 3.63 7.43 3.80 GCC - (Amt. in Rs. billion) 35.11 76.34 1096.89 1020.55 ICT A/Cs-BC- Transaction - (No. in million) (During the Year) 26.52 250.46 328.57 328.57 ICT A/Cs-BC- Transactions - (Amt. in Rs. billion) (During the Year) 6.92 233.88 524.37 524.37
  • 13. 6 pillars Universal Access to banking facilities Basic Accounts with O/D facility and RuPay Debit card Financial Literacy Programmes Creation of Credit Guarantee Fund Micro Insurance Unorganized sector pension schemes 13 Pradhan Mantri Jan Dhan Yojana
  • 14. 14 Trinity to make Financial Stability Possible – The ultimate objective Financial Stability Financial Literacy Financial Inclusion Consumer Protection
  • 15. Financial Literacy for un-banked Financial Literacy Centre - Awareness camp Literacy drive by RBI Accounts opened in camps Women getting linked to banks
  • 16. Catching them young Children learning to operateOpening accounts for children Curious to know more about banksFinancial Literacy in a school
  • 17. Thank YOU bipinnair@rbi.org.in

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