January 31, 2013
To Chairman/CMDs of Scheduled Commercial Banks
Financial Literacy Material
Please refer to our circular RPCD.FLC.No.12452/12.01.018/2011-12 dated June 6, 2012 regarding revised guidelines on the Financial Literacy Centres (FLC), in terms of which it was advised that FLCs and all the rural branches of scheduled commercial banks should scale up financial literacy efforts through conduct of outdoor Financial Literacy Camps at least once a month, to facilitate financial inclusion through provision of two essentials i.e. ˜Financial Literacy™ and easy ˜Financial Access™.
2. As advised therein, we have now prepared a comprehensive Financial Literacy Guide containing Guidance Note for Trainers,Operational Guidelines for conduct of Financial Literacy Camps & Financial Literacy Material as also a Financial Diary and a set of 16 posters as explained below. To start with, the entire material has been prepared in Hindi and English. It will also be translated in other Indian languages in due course of time.
The Financial Literacy Guide contains operational guidelines which clearly spell out the manner in which Financial Literacy Camps should be conducted so as to synchronise it with providing financial access and thus linking the financially excluded section with the banking system. The objective of Financial Literacy material is to aid creating financial awareness and educate common people on management of money, importance of savings, advantages of saving with banks, other facilities provided by banks and benefits of borrowing from banks. This guide is a ready recknor for trainers involved in Financial Literacy and Financial Inclusion.
The Financial Diary has been prepared for distribution to the target audience with the objective of enabling them to keep a record of their income and expenses leading to better financial planning and understanding of how they spend.
The posters with simple and appealing slogans, which communicate the messages of money management, savings, borrowings and basic banking products pictorially, may be displayed prominently before, during and after the Financial Literacy Camps.
3. Keeping in view of the extent of exclusion, banks need to conduct these Financial Literacy Camps in a mission mode, with the ultimate objective of making financial inclusion a viable business model by capturing the untapped business opportunities. In accordance with the objectives as stated above, it is necessary to evaluate the effectiveness of financial literacy efforts in linking the excluded segment to the banking system. SLBCs/DCC would review the financial literacy efforts undertaken by FLCs and rural branches under their jurisdiction, as a regular agenda item in the SLBC/DCC meetings. The details of FLCs along with contact details should be published on the respective SLBC website. Similarly Banks™ Head Offices would review the effectiveness of financial literacy efforts undertaken by their FLCs and rural branches. A structured monitoring mechanism both for FLCs and rural branches would be put in place shortly.
4. Banks™ Top Management including CMDs should ensure that all the rural branches and FLCs prepare a calendar for conduct of Financial Literacy Camps in the beginning of the year. They should give wide publicity to the financial literacy drive by attending some of the Financial Literacy Camps conducted by rural branches and FLCs during their outreach visits. In order to ensure consistency in the messages reaching the target audience of financially excluded people during the Financial Literacy Camps, it is necessary for banks to use the Financial Literacy Guide as a standard curriculum to impart basic conceptual understanding of financial products and services. They may also consider converting the contents of this guide into plays, skits, videos, films etc, for use in the Financial Literacy Camps. If necessary, they may get the material published in vernacular languages as well, in consultation with us. For any further details, we may be contacted by email.
(C D Srinivasan)
Chief General Manager
Available for Download with this journal:
- Guidance Note for Trainers,Operational Guidelines
- Financial Literacy Guide
- Financial Diary
- Financial posters
- Related Circulars