From UPSC perspective, the following things are important :
Prelims level : Not Much
Mains level : Financial education
The National Strategy for Financial Education (NSFE): 2020-2025 documents has been released by the Reserve Bank of India (RBI).
Try this question for mains:
Q.What is the role of Financial Education in ensuring financial inclusion in India?
What is the Strategy?
- The NSFE for the period 2020-2025, the second one after the 2013-18 NSFE, has been prepared by the National Centre for Financial Education (NCFE) in consultation with all the Financial Sector Regulators (RBI, SEBI, IRDAI and PFRDA.
- Other stakeholders include (DFIs, SROs, IBA, and NPCI) under the aegis of the Technical Group on Financial Inclusion and Financial Literacy (TGFIFL) under the Chairmanship of Deputy Governor, RBI.
- The strategy recommends the adoption of a multi-stakeholder approach to achieve financial well-being of Indians.
- The document has recommended a ‘5 C’ approach for dissemination of financial education in the country. These include an emphasis on:
- development of relevant content in the curriculum in schools, colleges and training establishments,
- developing capacity among the intermediaries involved in providing financial services,
- leveraging on the positive effect of the community-led model for financial literacy through appropriate communication strategy, and
- enhancing collaboration among various stakeholders
- The strategic objective is also towards improving usage of digital financial services in a safe and secure manner; as well as bringing awareness about rights, duties and avenues for grievance redressal.
- To achieve the vision of creating a financially aware and empowered India, certain strategic objectives have been laid down including:
- Inculcating financial literacy concepts among various sections of the population through financial education to make it an important life skill
- Encouraging active savings behaviour and developing credit discipline