Friday, January 15, 2016

Revised Guidelines for Financial Literacy Centres



Stronger FLC Architecture – Board Approved Policies

Banks should provide the minimum basic infrastructure and strengthen the existing FLC Eco-system.

1.    Banks should put in place policies on the modalities for engagement of Financial Literacy Counsellors in FLCs. Some points to keep in mind are:
a)    The qualifications and skills in conducting camps
b)    Prior Experience in banking/related fields
c)    Working knowledge of computers
d)    Knowledge of the local language
e)    Maximum Age
f)     Fixed Remuneration at market rates with incentives

2.    Physical Infrastructure: The FLC should have a separate space with a seating capacity of minimum 10 members.

3.    Basic amenities like Computers and furniture/fixtures.

4.    Vehicular support.

5.    Each FLC should have a dedicated Help line.

6.    Skill building: RBI will organize workshops in collaboration with CAB, Pune to train the Counsellors this year. Regional offices of RBI will hold workshops at state level every year as part of the Financial Literacy Week.

SLBC Convenor bank should update the database on Financial Literacy Centres through their SLBC/UTLBC Website

Tailored Approach to Financial Literacy and conduct of camps

FLCs and rural branches should identify different target groups at the ground level and conduct camps for a homogenous audience.

The approach of FLCs and rural branches of banks for conducting camps will be as follows:

1.    Special camps for the newly included people in the financial system, including PMJDY account holders:
They should be encouraged to make meaningful transactions and start using the associated benefits of having a bank account. A sample booklet containing the information has been prepared. Banks may translate the booklet in the local language and provide to the camp participants.

Target: Minimum one outdoor camp per month by each FLC and rural branch of banks for an year.

2.     Target group specific camps for the following segments:
o   Farmers
o   SHGs
o   Micro and Small Entrepreneurs
o   Senior citizens
o   School children
o   Others (may be identified by the FLCs)

Target: One camp per month for each target group by each FLC and rural branch of banks.

Concerted Approach & financial support

FLCs should try to get on board as many stakeholders as possible at the district/panchayat/village level during the conduct of the camps.

Reporting Mechanism

SLBC/UTLBCs will submit a report on a quarterly basis to the respective Regional offices of RBI within 20 days from the end of the quarter.

Apart from what has been indicated in this circular, FLCs are free to undertake financial literacy activities as deemed necessary, as per local needs.

Based on RBI Circular dt 14/01/16. Please visit www.rbi.org.in for any further clarification if required…..       Poppy