RBI soon launches a financial literacy drivein 80 blocks in 9 states on a pilot basis

Reserve bank of India (RBI) soon launches a financial literacy drive in 80 blocks in 9 states on a pilot basis

The Reserve bank of India (RBI) has decided to launch a financial literacy drive in 80 blocks in 9 states on a pilot basis.

The pilot project launch to educate people on e-transaction, formal sector borrowings, and insurance purchases.

The project will be commissioned in 9 states including Maharashtra, Chhattisgarh, Bihar, Odisha, Karnataka, Telangana, Andhra Pradesh, Haryana and Uttar Pradesh.

The Six non-governmental organizations registered with the Depositor Education.

It’s also registered with the Awareness Fund has been selected to execute the pilot project in collaboration with banks.

The NGOs include CRISIL Foundation, Swadhaar Fin Access, Indian School of Micro Finance for women (ISMW), Samarpit and the PACE Foundation.

The total cost of the project over a period of three years would be around Rs 18.40 Cr.

The main aim of the literacy drive is to infuse the habit of making a household budget and recording financial transactions, encourage transactions in saving accounts.

It also aims to active saving by depositing in banks through fixed deposits and recurring deposits.

The project to ensure people borrow from formal financial institutions and approach banking Ombudsman for Redressed of their grievances.

Its encourage e-transaction through electronic means such as NEFT, RTGS, IMPS, Internet Banking, Mobile Banking and UPI (Unified Payment Interface).

The NGO will be educating people to buy life insurance and pension products.

The reserve bank is initiating a pilot project on financial literacy at the block level to explore innovative and participatory approaches to financial literacy.