Money & Banking

FinMin uses ITIs, skilling centres for financial literacy courses

| | Updated on: Dec 31, 2015
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8,500 such centres have been roped in to conduct these courses

Why do we need a bank? What is insurance? When is the Permanent Account Number required? What is Direct Benefit Transfer?

These are some of the questions that form part of the Centre’s short-term courses on financial literacy under the Pradhan Mantri Jan Dhan Yojana and other related schemes.

The Finance Ministry has roped in Industrial Training Institutes (ITIs) and skilling centres to run short-term financial education courses to make new bank account members, borrowers and insurance policy holders aware of the details of formal banking terminologies, procedures and products, chiefly savings instruments.

Over 8,500 such financial literacy centres have been rolled out across the country. These are linked to bank branches that offer PMJDY and the related Jan Suraksha schemes.

“Financial literacy and education are important aspects of the government’s financial inclusion plan, as only access to formal banking channels is not enough.

“Subscribers must know the necessary requirements, their rights and benefits,” said a Finance Ministry official, adding that an attempt has been made to put in place a mass awareness campaign using the existing infrastructure.

Over the next year, the Ministry will review the implementation and success of the scheme and decide on the manner in which to expand it, said the official.

The financial literacy centres use charts, multiple choice questions, presentations and questionnaires as part of the courses that are run in regional and local languages.

Since the launch of PMJDY in August 2014, the Centre has rolled out a number of schemes for financial inclusion, including an overdraft facility, a debit card, loans for small and medium businesses under the MUDRA scheme and the Pradhan Mantri Jeevan Jyoti Yojana, Pradhan Mantri Suraksha Bima Yojana and the Atal Pension Yojana.

Published on January 22, 2018

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