NATIONAL STRATEGY FOR FINANCIAL EDUCATION (NSFE): 2020-2025

Recently, the Reserve Bank of India (RBI) released the National Strategy for Financial Education (NSFE): 2020-2025 document.

About NESE: It is the second NSFE. The first one was released in 2013. It has been prepared by the National Centre for Financial Education (NCFE) in consultation with all the Financial Sector Regulators namely RBI,SEBI, IRDAI, PFRDA, etc. under the aegis of the Technical Group on Financial Inclusion and Financial Literacy (TGFIFL).

Highlights of the Strategy

Objectives- To inculcate financial literacy concepts among various sections of the population through financial education To encourage participation in financial markets to meet financial goals and objectives. To manage risk at various life stages through relevant and suitable insurance cover.

To improve the usage of digital financial services in a safe and secure manner as well as bringing awareness about rights, duties and avenues for grievance redressal

Aim-

It aims to Integrate financial education content in school curriculum,. It 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. It emphasizes a multi-stakeholder-led approach for empowering various sections of the population to develop adequate knowledge, skills, attitudes and behaviour which are needed to manage their money better. It has recommended a '5 C' approach for dissemination of financial education in the country. The components of the approach are Content: Financial Literacy content for various sections of population. Capacity: Develop the capacity and 'Code of Conduct' for financial education providers. Community: Evolve community led approaches for disseminating financial literacy in a sustainable manner Communication: Use technology, media and innovative ways of Communication for dissemination of financial education messages. Collaboration: Streamline efforts of other stakeholders for financial literacy.

The Strategy suggests adoption of a robust 'Monitoring and Evaluation Framework to assess the progress made and TGFIFL would be responsible for periodic monitoring and implementation of NSFE under the oversight of Financial Stability and Development Council (FSDC). It will empower those imparting financial education and develop the capacity of various intermediaries who can be involved in providing financial literacy, and develop a 'Code of Conduct' for financial education providers, is among the main agendas. It also talks about the preparation of an information dashboard for the general public.

By: Ms. GURPREET KAUR