Financial literacy in India stood at 62.6 per cent based on knowledge, behaviour, and attitude, according to a Reserve Bank of India (RBI) survey in June 2023. These studies allow the central bank to undertake policy intervention in areas with low levels of awareness, aligning with the guidelines of the Organisation for Economic Co-operation and Development (OECD).

According to the OECD, “Financial awareness, knowledge, skills, attitude and behaviour (are) necessary to make sound financial decisions and achieve individual financial wellbeing.”

It is not only about investing and product awareness but about saving, budgeting, planning, and banking, among others, that make a person financially literate.

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RBI Initiatives For Financial Literacy

Financial literacy is important for every individual, irrespective of age, gender, or economic condition. To improve the financial literacy levels, RBI has launched several programmes and campaigns and created educational resources to financially empower individuals.

Here is a list of initiatives RBI undertakes for financial literacy:

National Centre For Financial Education (NCFE):

Established in 2013 by the RBI, the Securities and Exchange Board of India (SEBI), the Insurance Regulatory and Development Authority of India (IRDAI), and the Pension Fund Regulatory and Development Authority (PFRDA), NCFE promotes financial education through workshops, seminars, training programmes, and campaigns. It collaborates with regulators to develop a national strategy for financial education (NSFE). As part of its NSFE 2022-25 programme, it emphasises the ‘5 C’ approach: content, capacity, community-led model, communication, and collaboration, targeting teachers, students, and others.

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Financial Literacy Centres (FLCs):

This initiative is to reach out to people at the district level. Under this, commercial banks create their FLCs in districts, especially rural areas, and conduct monthly camps to raise awareness about financial products among farmers, school children, senior citizens, self-help groups, and small and micro-entrepreneurs. Another objective is to lead community-driven financial literacy initiatives where it engages specific banks and NGOs at the block level to spread awareness at the grassroots level.

‘RBI Kahta Hai’ Initiative:

This initiative educates people about banking facilities and services, including senior citizen banking, knowing banknotes, precautions in digital banking, Central Bank Digital Currency (CBDC), and other banking topics.

Financial Education Microsite:

The RBI runs a microsite (https://www.rbi.org.in/FinancialEducation/) focused on spreading financial knowledge through films, games, and other resources in simple language. The information caters to schoolchildren, trainers, and entrepreneurs and is available in 13 languages, including Hindi and English.

Financial Literacy Modules In School Curricula:

The RBI collaborated with several State Educational Boards in 2022 to introduce financial literacy modules in school curricula. Besides this, it conducts short-term campaigns like quizzes for school students, an annual financial literacy week with different themes to raise financial awareness, etc.

Financial literacy is a life skill relevant to any age; it’s about handling money better and inculcating responsible financial behaviour.