FLCs, banks' rural branches could target different segments: RBI

The banking regulator also said that there should also be adequate synchronisation at the ground level between the different stakeholders

The Reserve Bank of India (RBI) on Thursday said financial literacy centres (FLCs) and rural branches of banks could adopt a tailored approach for different target groups including farmers, micro and small entrepreneurs, schoolchildren, self-help groups and senior citizens.

The regulator also said there should also be adequate synchronisation at the ground level between the different stakeholders like lead district officer of RBI, district and local administration, block-level officials, non-governmental organisations and panchayats, among others, during the conduct of financial literacy camps.

RBI said that subsequent to the financial inclusion efforts by RBI and opening of accounts by banks through the Pradhan Mantri Jan Dhan Yojana (PMJDY), considerable ground has been covered in the field of financial inclusion. It added that going forward, the focus was going to be on keeping the already opened accounts active.

RBI also advised that special camps for the newly included people in the financial system, including PMJDY account holders, should be conducted and they should be encouraged to make meaningful transactions.

Currently, Nabard is in the process of preparing a comprehensive policy on funding for setting up of FLCs by all banks. RBI has said that with regard to detail on funding on financial literacy activities from the Financial Inclusion Fund, banks may follow guidelines issued by Nabard .