Question:Consider the following with respect to National Strategy for Financial Education 2020-2025:
(1) It is launched by Niti Aayog.
(2) The strategy has been prepared by the National Centre for Financial Education.
Which is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) None of these
Answer:(b)
- Context:
- Reserve Bank of India(RBI) has launched the National Strategy for Financial Education 2020-2025(NSFE).It is the second NSFE , the first one being released in 2013.
- Facts:
- Aim: To create a financially aware and empowered India.
- Prepared by: The strategy has been prepared by the National Centre for Financial Education(NCFE) in consultation with all the Financial Sector Regulators under the aegis of the Technical Group on Financial Inclusion and Financial Literacy.
- Key Provisions of the Strategy:
- Approach: The policy emphasizes a multi-stakeholder-led approach for empowering various sections of the population to develop adequate knowledge, skills, attitudes and behaviour.
- Financial Education: The policy has recommended a ‘5 C’ approach for dissemination of financial education in the country:
- 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.
- School Education: Integrate financial education content in the school curriculum, various professional and vocational courses.
- Monitoring: Adopt a robust ‘Monitoring and Evaluation Framework’ to assess progress made under the strategy.
- A specific period in the year needs to be identified to disseminate financial literacy messages on a large/ focused scale.
- National Centre for Financial Education(NCFE):
- It is a Section 8 (Not for Profit) Company promoted by RBI, Securities and Exchange Board of India(SEBI), Insurance Regulatory and Development Authority of India (IRDAI) and Pension Fund Regulatory and Development Authority (PFRDA).
- It’s mission is to undertake a massive Financial Education campaign to help people manage money more effectively to achieve financial well being by accessing appropriate financial products and services through regulated entities with fair and transparent machinery for consumer protection and grievance redressal.
By: Arpit Mishra
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