(Daily News Scan - DNS English) National Strategy for Financial Education

(Daily News Scan - DNS English) National Strategy for Financial Education

A few days back the Reserve Bank of INDIA has launched the National Strategy for Financial Education 2020-2025. It is a strategic plan to be implant for the next five years. This is the second NSFE, the first was launched in 2013. The second NSFE 2020-2025 has been launched with an aim to achieve financial literacy and empowerment of India.

In this DNS we will learn about NSFE and know its key points.

As mentioned above, RBI has launched National Strategy for Financial Education. It aims to inculcate financial literacy and its concept to various sections of the population of the country. Within this, schools and college going students will also be included. It will be done with the help of financial education so that financial literacy becomes a life skill.

Let us know about some of the key points of NSFE.

  • In its second National Strategy, the bank has come up with 5 crore Actions Approach.
  • It has also highlighted the 5C’s which are – Capacity, Content, Collaboration, Communication, and Community.
  • Content here refers to the school’s curriculum
  • Capacity is used to refer to developing capacity in intermediaries involved in financial services.
  • Communication and Community will be used for creating a community led model for financial literacy using the communication strategy.
  • Collaboration will be used to improve the partnership among various stakeholders.

Adopting robust monitoring and framework has also been suggested within this strategy which will help to keep a check on the progress made.

The strategy will emphasize on several areas including imparting knowledge about rights, duties and avenues for grievance redressal. Improve research and evaluation methods to assess progress in financial education among others. It will also looks at standardising the content for financial literacy for school children (including curriculum and co-scholastic), teachers, young adults, women, new entrants at the workplace, entrepreneurs (MSMEs), senior citizens, persons with disabilities, illiterate people, etc.

The strategy mentions that Integrated financial education content in school curriculum, numerous professional and vocational courses will be run undertaken by Ministry of Skill Development and Entrepreneurship (MSD&E) through their sector skilling missions .

Besides creating content, it would also empower those imparting financial education. It will also help to develop the capacity of various intermediaries who can be involved in providing financial literacy, and develop a ‘Code of Conduct’ for financial education providers. It also mentions about the preparation of an information dashboard for the general public.

Not only this, it also aims at integrating financial education dissemination as part of various on-going programmes. Streamline efforts of other stakeholders for financial literacy including financial awareness, knowledge, skills, attitude and behaviour necessary to make sound financial decisions and ultimately achieve individual financial well-being.

Now moving forward let us know few points about the NCFE.

The first NSFE was launched by the National Centre for Financial Education. It 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).

Its vision is a financially aware and empowered India.

Its key objective is to financial education across India for all sections of the society.