Financial Literacy Drive in 9 States By RBI

In News

The Reserve Bank Of India (RBI) will launch a financial literacy drive in 80 blocks in 9 states on pilot basis to educate people on e-transactions, formal sector borrowings and insurance purchases.

Context:

  • Six NGOs registered with Depositor Education and Awareness Fund are selected to execute the project in collaboration with the central bank namely are CRISIL Foundation, Dhan Foundation, Swadhaar Fin Access, Indian School of Micro Finance for Women (ISMW), Samarpit and the PACE Foundation.
  • The project will be commissioned in the 9 states of Maharashtra, Chhattisgarh, Bihar, Odisha, Karnataka, Telangana, Andhra Pradesh, Haryana and Uttar Pradesh across 80 blocks with the sponsor banks.
  • The total cost of the project for time period of three years is ₹18.40 crore.

Aim of the Project:

  • The aim of Centre for Financial Literacy (CFL) is to inculcate the habit of making a household budget and recording financial transactions, encourage transactions in savings accounts, and active saving by depositing in banks through fixed deposits and recurring deposits.
  • The pilot project also aims to encourage e-transactions through electronic means viz NEFT, RTGS, IMPS, Internet Banking, Mobile Banking, UPI (Unified Payment Interface) etc.
  • The project also aims to ensure people borrow from formal finance institutions and approach banking Ombudsman for redressal of their grievances.
  • People across the 80 blocks of the 9 states will be educated by the NGOs to buy life insurance and pension products.
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