RBI Releases The National Strategy For Financial Education: 2020-2025 |

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RBI: The Reserve Bank of India has released the National Strategy for Financial Education for the time period of 2020-2025 with the perspective of “Creating a financially Aware and Empowered India”. The NSFE has been implemented through the institutional mechanism and it would be directly monitored by Technical Group of Financial Inclusion and Financial Literacy. The Financial Stability and Development council would be overseeing the Strategical implementation.

National Strategy for Financial Education: 2020-2025 – Download PDF

What are the objectives of National Strategy for Financial Education: 2020-2025?

The RBI has also released the revised strategic objectives that would be reflecting the alteration to economic landscape and promote financial education throughout the nation. Below are the revised objectives in new National Strategy:

Inculcate financial literacy concepts among the various sections of the population through financial education to make it an important life skill
Improve research and evaluation methods to assess progress in financial education
Encourage participation in financial markets to meet financial goals and objectives
Improve usage of digital financial services in a safe and secure manner
Develop credit discipline and encourage availing credit from formal financial institutions as per requirement
Encourage active savings behavior
Manage risk at various life stages through relevant and suitable insurance cover
Plan for old age and retirement through coverage of suitable pension products
Knowledge about rights, duties and avenues for grievance redressal

Also read, RBI Grade B 2020: Notification, Exam Date, Application Form, Eligibility, Syllabus

Key Stakeholders in the National Strategy:

Below is the list of the stakeholders who have been identified for implementing strategic goals to the Financial Education in 2020-2025.

Government of India: Department of Financial Services (Ministry of Finance), Ministry of Electronics and Information Technology, Ministry of Rural Development/ National Rural Livelihood Mission, Ministry of Urban Affairs and Poverty Alleviation/ National Urban Livelihood Mission, Ministry of Human Resources Development, Ministry of Corporate Affairs, Ministry of Skill Development and Entrepreneurship, Ministry of Health and Family Welfare, Ministry of Women and Child Development, Ministry of Information and Broadcasting, Ministry of Panchayati Raj, Ministry of Social Justice and Empowerment
Financial Sector Regulators: RBI, SEBI, IRDAI and PFRDA
National Centre for Financial Education (NCFE)
Development Financial Institutions: NABARD and SIDBI
Industry Associations: IBA, AMFI, FEDAI, BCFI
Securities Market Institutions Infrastructure: Stock Exchanges, Depositories
Payment Institutions: NPCI
Investor Education Institutions: IEPFA, IICA, etc
Financial Service Providers: Banks, Insurance Companies, Mutual Fund Companies, Pension Funds, Stock Exchanges and Depositories, Non-Banking Financial Companies, Fin-tech companies, etc
Self-Regulatory Organizations (SROs): FIDC, M-Fin, Sa-Dhan, etc
State Rural Livelihood Mission (SRLM) of all states
NGOs/ Civil Society Organizations
Research Institutions
Consumer Associations
Multi-Lateral Institutions (OECD-INFE, G20, etc.): For knowledge sharing on Global Best Practices

Evaluation of the National Strategy:

As evaluation is mandatory to check on whether the strategies are implemented correctly or not, it has been decided that a Mid-term Evaluation shall be undertaken at the end of three years of Strategy implementation (2022-2023). A comprehensive National Survey at the end of the Strategy implementation period shall be undertaken in 2025 and will be presented for the changes made in these five years

Progress made under 1st National Strategy for Financial Education (2013-2018):

The key elements of the previous strategy for financial eduction was also summarized along with the newer strategies. From the previous strategy, the key learnings are as such:

Target Specific modules must be developed
The language and mode of delivery of financial literacy messages should be quiet appealing
One-to-one learning and group training were found to be effective modes of dissemination of financial literacy messages
Practical training should be in more focus
Broadcasting through television was highly responsive.
Stakeholder collaborations is important
Financial literacy examples are more effective when co-related with life-events
More efforts are needed to understand how financial education program can be curated to translate into positive behavioral outcomes

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