Mumbai, April 14: The importance of financial literacy has been never emphasized among common people in India. For personal prosperity to national economic growth, good financial habit is very important. To increase financial literacy RBI has decided to observe the week June 5-9, 2017 as Financial Literacy Week across the country.
The Reserve Bank of India’s developmental project includes Financial Inclusion and Education as the important element of the initiative. To make common people aware of financial products and services, good financial practices, going digital and consumer protection is the main objective of this initiative.
What are Financial Literacy and its importance in India?
Financial Literacy does not mean only managing personal finance, it goes beyond that. Along with fluency in personal finance, one must know about global economics, entrepreneurship, investing and all on a digital platform. The four fundamental baseline of financial literacy is- 1. The Difference between an Asset and a Liability,2. Cash Flow Versus Capital Gains,3. Cash Flow versus Capital Gains and 4. Making your own financial decisions. Now when we are in digital age, the need to access and utilize money can be immediate. Is it not ironic that we even don’t know the term “financial literacy”?
A survey was conducted on financial literacy by Gallup and Standard and Poor’s Ratings Services in 2014 where 140 countries participated. According to the survey report, in India 24% adults are financially literate. That does mean more than 70% adults in India do not have financial literacy.
Activities planned by RBI:
Standing in a situation like this we can’t help but have to praise RBI’s decision of celebrating Financial Literacy week. KYC, Exercising Credit Discipline, Grievance Redressal and Going Digital are four broad themes that will be in focus. Regional branches of RBI have been advised to make proper arrangements to collect the posters/flyers/charts from the Regional offices of RBI during the first two weeks of May and distribute the same to their branches. The banks should display local language version of the posters.
RBI is not only celebrating a week but they have already taken some other initiatives also.RBI has published a booklet named Financial Awareness Messages(FAM) provides basic financial literacy messages for the information of general public. They published two posters explaining-UPI (Unified Payment Interface) and *99# (Unstructured Supplementary Service Data) in digital payments space. All this is available in 13 regional languages and available in online platforms.
Chief General Manager-in-Charge, Uma Shankar has whole hearted co-operation from the banking fraternity at large in making this event a grand success and aims to reach out to the common man during the Financial Literacy week.