What is the news ?

The Reserve Bank of India (RBI) released the National Strategy for Financial Education 2020-25 a strategic plan for the coming five years.

Need and aim for financial education

• The aim is to develop a a population with financially awareness thereby empowering India.
• It also aims to financial literacy concepts among various sections of the population through financial education to make it an important life skill.
• It encourage savings behaviour for future.
• Helps to improving the usage of digital platform
• Providing awareness regarding the rights, duties, grievance redressal at younger age.

About National Strategy for Financial Education

• It was released by RBI
• It has recommended a ‘5 C approach’ for dissemination of financial education in the country
  1. Content Development : Emphasis on development of relevant content in curriculum in schools colleges and training establishments.
  2. Capacity Building : Developing capacity among the intermediaries involved in providing financial services.
  3. Community Model : Positive effect of community-led model for financial literacy.
  4. Communication Strategy : Appropriate communication strategy through various digital and technology platforms.
  5. Collaboration of stakeholders : Enhancing collaboration among various stakeholders.
• This is the second one of its kind and the first NSFE was documented for 2013-18 by the National Centre for Financial Education.

About National Centre for Financial Education

NCFE is a Section 8 (Not for Profit) Company promoted by Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), Insurance Regulatory and Development Authority of India (IRDAI) and Pension Fund Regulatory and Development Authority (PFRDA).

Aims to :

• Promote Financial Education across India for all sections of the population.
• Create financial awareness and empowerment through financial education campaigns across the country for all sections
• Its vision is financially aware and empowered India.

Source : IE

Topic

Prelims : National Centre for Financial Education, 5C Approach, 

GS II : Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

GS III : Inclusive growth and issues arising from it.