Financially aware and empowered India is the vision of the Government of India. Reserve Bank of India plays a vital role in promoting financial education. Last Thursday RBI came up with a strategic plan for the promotion of financial literacy. It suggested a 5-C action approach for the program. It may help to achieve the vision of a financially empowered India.
RBI released the ”National Strategy for Financial Education 2020-2025” (NSFE) for promoting the financial literacy, credit discipline, and savings habits in India. This NSFE is the second edition after the 2013-2018 NSFE prepared by the National Centre for Financial Education in consultation with financial sector regulators. The major financial sector regulators are IRBI, SEBI, IRDAI, and PFRDA.
The 5C action approach includes Content, Capacity, Community, Communication, and Collaboration. This strategy includes an emphasis on the development of relevant content in the curriculum in schools and colleges and training establishments, leveraging the positive effect of the community-led model for financial literacy through a suitable communication strategy, developing capacity among intermediaries of financial services and ensuring collaboration among various stakeholders. The adoption of a multi-stakeholder approach to achieve the financial well-being of all Indians is the specialty of this education strategy.
To Boost the financial inclusion in India is the major objective of the central government and the four regulators of the financial sector. Financial education policy will help to accomplish this goal. To provide awareness about the usage of digital financial services and its safety, rights, duties, and avenues for grievance redressal are also its objectives. Through this strategy, RBI is inculcating financial literacy concept among various sections of the population. The mix of financial awareness, knowledge, skills, attitude, and behavior necessary to create sound financial decisions and ultimately achieve individual financial well-being is known as financial literacy.
The education strategy will empower various sections of the population to develop adequate knowledge, skill, attitudes, and behavior which are needed to manage their money better and efficient way an plan for the future. Anyway, this kind of initiative will encourage the saving mentality of the people and will ensure the improvement of financial knowledge.
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