RBI’s Five-Year National Strategy Focuses On Financial Literacy Of Students

Bhubaneswar: The Reserve Bank of India (RBI) has released the national strategy for financial education for the next five years. Financial literacy of school and college-going population is the thrust of the plan.

The strategy aims to improve and impart basic knowledge about finance. It would include areas like knowledge about rights, duties and avenues for grievance redressal, research and evaluation methods to assess progress in financial education.

It also looks at standardizing the content for financial literacy for school children (including curriculum and co-scholastic), teachers, young adults, women, new entrants at the workplace, entrepreneurs (MSMEs), senior citizens, persons with disabilities, illiterate people etc.

“Integrate financial education content in school curriculum, various professional and vocational courses will be run/undertaken by Ministry of Skill Development and Entrepreneurship (MSD&E) through their sector-skilling missions and the likes of B Ed/M Ed programmes,” as per the strategy.

The plan is also to develop credit discipline and encourage availing credit from formal financial institutions as per requirement. Moreover, it will also improve the usage of digital financial services in a secure manner.

The central bank’s 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.

RBI recommended adopting the ‘5 C’ approach for dissemination of financial education by developing 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 enhancing ‘Collaboration’ among various stakeholders.

The strategy also suggests adopting a robust monitoring and evaluation framework to assess the progress made.