The draft paper recommends that all the bodies involved in spreading financial literacy follow a uniform financial inclusion strategy so that results are achieved faster.
The draft has been prepared under the aegis of the Sub – Committee of Financial Stability and Development Council and released simultaneously by all regulators. The draft focuses on financial education throughout the life cycle of an individual starting from the school level.
“Given the fact that India is having large population, a fast growing economy with national focus on inclusive growth and an urgent need to develop a vibrant and stable financial system, it is all the more necessary to quickly formulate and implement a national strategy,” says the draft.
A number of financial and non-financial arms are already involved in spreading financial literacy, so a broad national strategy is a requirement to ensure that they work in tandem and not at cross purposes, says the draft. Banks, non banking financial companies, mutual funds, pension funds, insurance companies etc and financial Institutions that act as intermediaries such as brokers, merchant bankers, registrars, depositories, exchanges, insurance brokers, corporate agents, education institutes, NGOs, financial sector regulators would be taking part in this development. The strategic action plan would be executed in the five year time period.
The draft has illustrated various actions to be undertaken in this development.
a) To set up a structure as envisaged in this document
b) To incorporate basic financial education in school curricula up to senior secondary level.
c) Create awareness about consumer protection and grievances redressal machinery available in the country.
d) The financial education to be delivered by trained persons in a format suitable to each target group with the content that has been developed by rigorous research.
The draft also highlights the importance of a survey before carrying out the campaign and has narrowed down the survey to six steps for initial assessment to measure financial awareness among consumers. The draft also mentions that investor complaints could give cues as to the areas where work is required.
“The repository of complaints available with regulators gives an insight of the areas where financial education would be able to improve consumer awareness of various products and also help in addressing gaps in consumer protection,” says the draft.
The regulators have asked for comments and feedback on the draft till 15th August.