Money & Banking

RBI asks Financial Literacy Centres to hold special camps on going digital

Our Bureau Mumbai | Updated on January 13, 2018

The Reserve Bank of India has advised bank-operated Financial Literacy Centres to conduct special camps for one year beginning April 1, 2017 on “going digital” through Unified Payments Interface and the *99# service, in view of the government’s emphasis on increasing digital transactions post-demonetisation.

Besides these camps, FLCs will continue to conduct ailored camps for five target groups — farmers, small entrepreneurs, school children, senior citizens and Self Help Groups. The RBI said the tailored content for each target group is being prepared and will be shared with banks/FLCs in due time.

Further, rural bank branches will henceforth be required to conduct only one camp a month (on the Third Friday of each month after branch hours) covering messages such as documents to be submitted while opening a bank account, importance of budgeting and saving and responsible borrowing, learning about deposit accounts, maintaining a good credit score by repaying loans on time, the manner in which to lodge complaints at the bank and Banking Ombudsman.

The camps by rural bank branches will also cover the two digital platforms – UPI and the Unstructured Supplementary Service Data-based “*99#” service.

FLCs are set up as Trusts/Societies by banks, either singly or jointly with other banks. A bank can induct respected local citizens on the Boards of such Trusts/Societies. Serving bankers are not included on the Board.

In a notification to banks, the RBI said FLCs and rural branches of banks are eligible for funding support for FLCs to the extent of 60 per cent of the expenditure of the camp subject to a maximum of ₹15,000 per camp.

Published on March 02, 2017

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