Summary on Financial Literacy Financial inclusion in rural communities has become the focus of increased attention in recent years. There have been a number of financial literacy training programs and efforts to enhance participation in the formal financial sector by rural households. In this paper we describe the simply design process, result and general observation I. E. Financial Literacy for community based micro-finance institution in rural India. Financial stability and financial inclusion is the two main objectives for dissemination of financial literacy.
Credit counseling initiatives: 1) UNDO Role: Partnered with Government machinery and civil society in India, and focus on improvement in the quality of lives of the poorest of poor among the seven least developed states. 2) ONBOARD: set up with a mandate of facilitating credit flow for promotion and development of agriculture as well as evolved to occupy a pivotal position in the financial inclusion efforts 3) Micro saving: “market -led solution for financial services” is the tag-line used to create a successful partnership with the arioso stakeholders, financial institutions to promoting the financial inclusion.
Financial Literacy Assessment Survey: Conducted by UNDO and ONBOARD, Micro save to assess the current status of financial literacy in UN focused states and to gather a relevant data from other similar programs operating in nationally and internationally. Concept of financial literacy What is “Financially smart” or financial literate is the combination of two part Market Investing knowledge and skills in one part and saving, budgeting, financial planning, ND basics of banking in another part.
Consumer protection Consumer protection Why is necessary? It forms a triad Financial stability Financial inclusion Awareness Access Avoidance of financial crisis Financial ability to deal with the emergence of imbalance (In India both the elements needs to be emphasized) Need to De reactive grievance redress mechanism. Tort gaining the confidence of the unbaked population. Who needs and in what respect? On the basis of finance, needs are categorized into two parts: one is financially included and another one is financially excluded.
In terms of people) Financial excluded are all resource-poor population, which have a constant financial pressure, very few resources, difficult circumstances. Financial literacy efforts to educate them about the benefits and being the part of the formal financial system. Financial included are all middle and lower-middle income group, those are participating the financial system either saver or borrower or both.
The main purpose is enhancing their knowledge about the market and their services But he main thing is that bank, formal institute, financial institute and other market player are also needs to aware of the market risk and their return framework How: For promoting of this financial literacy Organization for Economic Cooperation and Development created the international network on financial education in 2008 and facilitating international cooperation between policy maker and stakeholder worldwide. In India: set up of the financial stability and development, chaired by union finance minister.
With the help of Outreach visit, RIB website, Awareness, financial literacy center (575), conducting Town hall events across the country, use of mobile financial literacy, Mass media campaign and conducting Rural Self Employment Training Institute. “Catch them young” strategy by RIB for our financial education initiatives. NSF (National Survey on Finance Education) disseminate the information regarding financial education through messages, ensuring consistency and authenticity in the message reaching to the target audience.
Recent Activities for rumoring financial literacy: RIB released a website on January 31, 2013 is “Comprehensive Financial Literacy Guide” which is used as a to give the basic conceptual understanding of financial product and services. Conclusion There are so many initiatives have taken by all formal, private institutes etc. For promoting this financial literacy but the basic thing is that only to work hard, with periodic appraisal of the performance, as it is helps one to reorient, refocus and undertake mid-course correction for the achievement of the ultimate objective.
