Sebi pitches for scaling up NCFE to complement Jan Dhan Yojana

15 crore accounts have already been opened and Rs 15,800 crore has been deposited in them

To complement the government's ambitious financial inclusion programme, Jan Dhan Yojana, Sebi has suggested a massive scaling up of the National Strategy on Financial Education including by way of greater fund outlays.

The National Centre for Financial Education (NCFE), which comprises representatives from all financial sector regulators, including Sebi, RBI, IRDAI, PFRDA and FMC, is mandated to implement the government's National Strategy on Financial Education.

The strategy states that "financial education plays a vital role in making demand side respond to the initiatives of supply side interventions".

"Government of India has made a huge supply side intervention by way of Jan Dhan Yojana. The NCFE will have to make a matching effort in scaling up its operations in order to respond to Jan Dhan Yojana," Sebi said in an internal memo to its board.

The Jan Dhan Yojana, launched by Prime Minister Narendra Modi in August last year to open at least one bank account for every household in the country, has already seen more than 15 crore accounts being opened and Rs 15,800 crore has been deposited in these accounts.

Taking forward the financial inclusion agenda, the government has now launched three social security schemes including ultra-low cost life and health insurance plans.

Sebi said that it would take up the matter of scaling up the operations of NCFE with the Financial Stability and Development Council (FSDC), the apex body for coordination between various financial regulators and the government.

"Sebi will be taking up the matter with FSDC Sub-Committee and Technical Committee as to how the NCFE can quickly respond at a massive scale.

"As the operations in NCFE are scaled up, the budgetary support to NCFE by regulators (including by Sebi) will have to be scaled up," the capital markets watchdog said.

NCFE was set up to implement the National Strategy for Financial Education, under the guidance of a Technical Group on Financial Inclusion and Financial Literacy of the FSDC.

Its main role is to create financial education materials and conduct financial education campaigns across the country for all sections of the population along with awareness campaigns at different levels for existing and potential financial sector customers so as to improve their knowledge, understanding, skills and competence.

It works with a vision of "a financially aware and empowered India".

Among other initiatives, NCFE has developed computer games to help school children and the young population easily understand basics of various financial products and markets.

It also conducts National Financial Literacy Assessment Test (NFLAT) online across the country in English and Hindi.