Financial literacy project to be launched in state

The Reserve Bank of India (RBI) has identified Karnataka to launch a pilot project on financial literacy programme as part of its platinum jubilee celebrations. As part of the project, the state will introduce a chapter on financial and banking-related issues in its school and college curriculum.

RBI governor, D Subbarao, who held discussions with the state chief minister B S Yeddyurappa and other officials in this regard, told reporters that Karnataka will be the first state where the financial literacy programme is being introduced in the school and college curriculum to create awareness about the banking system.

Reserve Bank of India was set up in 1935 and this year it will celebrate the platinum jubilee in the course of this year. It is the intention of RBI that this celebration must have an enduring legacy and it should not be something done for the moment and at the moment, he said.

“We have not yet firmed up our plans for the celebration. As part of the plans we are aiming at improving financial literacy in the country both at the school and college level. The curriculum must reflect the latest knowledge. All the students passing out of schools and colleges should have a minimum understanding of financial sector issues. We have identified Karnataka as the state to implement the pilot project involving the government officials and teachers. The chief minister has agreed to take up the project,” Subbarao said.

To a question on the overdraft scheme for state government, he said Karnataka has no problem with overdraft facility. “To the best of my knowledge, Karnataka is one of the better states as far as state finances are concerned. The chief secretary and the principal secretary in charge of finance have told me that the state taxes to GSDP ratio is 11 per cent, which is by far the highest in the country,” he said.