Mumbai, March 3: In order to boost the digital modes of payment and also to curb the corruption, the Reserve Bank of India (RBI) on Thursday has advised bank-operated Financial Literacy Centers, FLCs and rural branches to organize special camps to educate public about digital payments.
RBI has asked the banks to organize special camps from April 1 to educate public about digital payments through UPI and 99# (USSD) code platforms. The camps will be conducted for one year. It said the policy on the conduct of camps by FLCs (Financial Literacy Centres) and rural branches of the banks has been revised given the recent developments on withdrawal of legal tender status of old Rs 500/1,000 notes and the focus on going digital.
Besides the special camps on going digital, RBI said FLCs will continue to conduct the tailored camps for the different target groups. "The tailored content for each target group is currently being prepared and is expected to be shared with banks/FLCs in due course of time," the RBI said.
Further, rural branches of banks are henceforth required to conduct only one camp per month on the third Friday of each month after branch hours). FLCs and rural branches of banks can get support for the financial literacy camps to the extent of 60 per cent of the expenditure with a cap at Rs 15,000/per camp.
The RBI has also detailed reporting mechanism for banks and the financial literacy camps will be assessed/evaluated on an ongoing basis by its Lead District Office (LDOs). Earlier, lead banks were asked to set up FLCs in each of the Lead District Manager (LDM) Offices.
However, two posters, one on UPI and one on *99# have been prepared for the benefit of the trainers and the audience. The English, Hindi and local language versions of the two posters are available at the financial education webpage of the Bank for download and printing purposes. While the A2 and A3 sizes can be used by trainers, A4 and A5 sizes can be distributed to the general public during the camps.
Notably, Unified Payments Interface (UPI) is a system that powers multiple bank accounts into a single mobile application. The USSD service for fund transfer works without the internet.
Importantly, on 8th November 2016, Prime Minister Modi suddenly announced the decision of demonetization. This step was taken primarily for curbing of corruption, black money and terrorism. Then later he called for less cash society and urged people to use digital mode of payments.