Spreading financial literacy

The Reserve Bank of India (RBI), with the objective of disseminating information on the Central Bank and general banking concepts to various target
groups including school and college students, has undertaken an initiative titled 'Project Financial Literacy.' The project also aims to educate women, rural and urban poor, defence personnel and senior citizens on general banking concepts.

Recently, a pilot programme has been launched on financial literacy in Karnataka. The programme, launched by RBI in collaboration with the state government, will involve introduction of financial and related material in the curriculum of schools and colleges. Significant steps would also be taken to make financial literacy a part of non-formal education.

A Udgata, chief general manager, RBI, said: "Children, today, are not money-smart and hence, it is imperative to teach them the basic concepts of banking that would be useful for them in life. As a part of our project, we visit various schools across India and hold various activities for students to sensitise them on financial concepts."

He adds, "Our literacy project has two segments. While the first one is concerned with general topics designed to acquaint people with the basics of banking, finance, markets, banking products and facilities, the second one aims at familiarising people with the functioning of our Central Bank in areas like monetary policy, currency management, forex management, public debt management and other similar topics."

For spreading awareness about RBI and banking at the regional level, RBI also conducts an essay competition for schoolchildren on subjects related to financial inclusion. Adds Udgata, "We are also working on an RBI Young Scholarship Award to generate interest and awareness about the Indian banking sector. Under the scheme, RBI will select young scholars through a countrywide competitive examination who wll be given an opportunity to intern with the bank for two to three months. The opportunity will be available to students pursuing their graduation in Indian universities."

In an attempt to 'catch them young,' RBI launched two comic books in basic banking. He explains, "Through this pictorial representation, while Raju (a comic character) explains the basics of banking to children, Money Kumar (another character) explains the role and functions of RBI. Both these comics have been published in 13 languages including English and Hindi. They have been accommodated in Braille as well."

In addition, RBI has created a special subsite to make people understand the basics of banking in an interesting manner through comics, films, interactive games and stories. Udgata adds, "We are planning to launch a story book on this site narrating the story of the evolution of money from the times of the barter system to the present system of electronic money."