RBI urges banks to re-invigorate the financial literacy using FLCC
By Vaibhav Aggarwal
Jun 8, 2012
Print    Email    RSS   

The banking and monetary regulator RBI has asked banks to give a new lease of life to financial and credit literacy to the consumers. There was a trend of distressed agricultural and personal loans in 2008-09, which had prompted the RBI to come up with a Financial Literacy and Credit Counseling (FLCC).

This model however didn't pick up as per expectations. RBI conducted a survey of 30 FLCC across 16 states to find out certain limitations.

"The findings of the study indicate the limitations of the model scheme in scaling up the financial literacy efforts in the desired manner," RBI stated.

One of the primary reasons is the awareness, only distressed customers were aware and being counseled. These centres were run by independent trusts, but were in contact with the sponsor bank, and were also working as marketing centres for the bank products.
Since these centres were set up by banks, the farmers, and distressed borrowers were wary of them becoming debt recovery centre.

The new model as per RBI's suggestions would include setting up of Financial Literacy Centres (FLC) at each Lead District Manager's (LDM) office. There would be 630 new FLCs. Further the financial literacy would also be taken up by rural branches of commercial banks and RRBs. The RBI would it would specially prepare material for financial literacy and distribute it to banks.


(Comments Posted : 0) Post Your Comments
Show All Comments
 Select a product:

 Select a product:

Carnival of Indian Personal Finance Blogs # 9
This is how a bank lends money
Central Bank of India ordered to return...
Know about Personal loan against fixed...
Know about Form 16

{{Banaswadi}}Indipendent ℂall Girℒs Iℕ...
am taken AXIS Bank PL am Want Loan Track Record How...
What is the outstanding Amount for my personal loan
ho many month balance in My Personal loan
i need my personal loan track statement

LVB bank joined hands with NCML Feb 18, 2015
Syndicate Bank hiring 5000 new staff Feb 12, 2015
SBI donated Rs 8.6 cr as a part of CSR activity Feb 11, 2015
Canara Bank tied up with NHBC Feb 9, 2015
Hiring for Probationary clerks in South Indian Bank Feb 5, 2015
News Archive