To spread financial literacy across the country, financial regulators have devised a ‘unified and coordinated’ National Strategy for Financial Education (NSFE) framework.
This initiative is aimed at educating citizens about financial products and basic concepts, so as to increase investor confidence and help make better choices. To achieve this, NFSE will conduct financial education campaigns across the country for all sections of the population, starting from the school level. The draft framework aims to educate 500 million adults on key saving, protection and investment-related products, so that they are empowered to take prudent financial decisions.
A five-year time frame has been decided upon to implement the strategy. School curriculum, social marketing channels like radio and newspaper, self-help groups and microfinance institutions are some of the delivery channels identified to spread financial education.
The strategy proposes to weave financial education into the school curriculum. The Central Board of Secondary Education has agreed, in principle, to introduce it in an integral manner in school education (post primary level). The framework puts the onus on the finance and human resource ministries to include financial literacy in the curriculum.
Financial consumers, market players, along with educational institutions, regulators and international agencies like the Organisation for Economic Co-operation and Development will all be the stakeholders of NSFE. A nation-wide survey will be conducted with the help of various regulators to assess the state of financial literacy and identify gaps and establish goals.
The existing technical group of a sub-committee of the Financial Stability and Development Council (FSDC) will be responsible for periodic monitoring and implementation of the National Strategy for Financial Education. the National Institute of Financial Education with members from relevant regulators, will be the specialised group, under the National Institute of Securities Markets.
Countries like Czech Republic, Netherlands, New Zealand, Spain and UK have already implemented a National Strategy for Financial Education, while others are in the process of doing so. The draft framework, prepared under the aegis of the sub-committee of the FSDC, was released on Monday by all financial sector regulators to seek comments and feedback till August 15.