The Reserve Bank of India Governor, Dr D. Subbarao, and the Chairman of Union Bank of India (UBI), Mr M. V. Nair, recently visited the Financial Literacy and Credit Counselling Centre (FLCC) set up at Perumbavoor in Ernakulam district.

The FLCC, managed by the UBI, Lead Bank for the district, has been functioning from February-end onwards, says Mr M. P. Varghese, Credit Counsellor, and a former deputy general manager with UBI. Detailed discussions were held with the Reserve Bank Governor and the UBI Chairman on the modalities of operation and functioning of the centre.

“Accordingly, we are going ahead with a number of plans for educating the general public in inculcating the banking habit in all financial matters,” Mr Varghese said.

All services provided from the centre are free, he added, and listed them out.

Counselling/education would be extended through face-to-face interaction as well as other available means such as e-mail, fax or the mobile phone as per the convenience of the interested persons.

EXPERT ADVICE

Expert advice on proactive and early savings avenues in, or on need-based borrowing from the formal financial sector, and debt counselling to individuals indebted, will be among the major services provided.

Expert advice will also be made available in rural/semi-urban/urban areas in the district on various financial products and services.

Advantages of being connected with formal financial sector would be explained to customers and awareness programmes on rights and privileges taken up.

DEBT TRAP

Other major topics include advice on ways and means to come out of debt traps and debt restructuring plans for individual borrowers in distress.

Restructuring/rescheduling/replacement plans would be recommended to the respective financial institution, including cooperatives, for being considered on merit.

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