Financial Literacy & Inclusion - The Indian Way

BIPIN NAIRASSISTANT GENERAL MANAGER

RURAL PLANNING & CREDIT DEPARTMENT

AFI GPF Mexico 2011

India- Some factsIndia- Some facts

AFI GPF Mexico 2011

Policy Initiatives Bank led model adopted to achieve planned, sustained and structured

financial inclusion Banks mandated to provide access to financial services in nearly 74000

villages with population over 2000 by March 2012. Three year Board Approved Financial Inclusion Plan by banks to be rolled

out by March 2013 for extending financial unbanked villages. Business Correspondent/ Business Facilitator Model - Availability of

Door-Step banking services to all 600 thousand villages in the country- Next 3-5 years

Regulatory norms on KYC relaxed. Simplified branch authorisation. Mandatory opening of 25 % of new

branches by banks in unbanked rural centers. Include criteria regarding Financial Literacy and Inclusion in performance

evaluation of the staff. Availability of minimum four banking products under Financial Inclusion is

being ensured .

AFI GPF Mexico 2011

Policy Initiatives

• Nearly 250 Outreach Programs involving participation of senior executives from RBI conducted across the country.

• Nearly 200 remote unbanked villages adopted by RBI for transformation into model villages characterized by 100% financial inclusion.

• State Governments to include Financial Literacy as part of the school curriculum.

• Issuance of unique identification numbers (AADHAR) to beneficiaries for rolling out social security payments through the banking channel.

AFI GPF Mexico 2011

Project Financial Literacy

AFI GPF Mexico 2011

ACHIEVEMENTS under FINANCIAL INCLUSION

AFI GPF Mexico 2011

•Total Number of villages covered 99840

•Villages covered through branches 22684

•Villages covered through BCs 76801

•Villages covered through other modes 355

•Number of No Frill Accounts 74.39 mio

•Number of Agricultural Credit Cards 22.49 mio

•Number of General Credit Cards 0.95 mio

Way Forward -Coordinated National Strategy

The key is establishing an appropriate Business Delivery Model through the involvement of all stakeholders to make Financial Inclusion a reality.

A National Level Strategy for Financial Literacy is the need of the hour.

Coordination with Central and State Governments as well as with Global Organisations.

AFI GPF Mexico 2011

Thank you.

bipinnair@rbi.org.in

AFI GPF Mexico 2011