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Financial Literacy by FLCs (Financial Literacy Centres) and rural branches - Policy Review


March 02, 2017

To Chairman/MD & CEO
Scheduled Commercial Banks
(Including RRBs)

Dear Sir/Madam,

Financial Literacy by FLCs (Financial Literacy Centres) and rural branches - Policy Review

Please refer to our circular FIDD.FLC.BC.No.18/12.01.018/2015-16 dated January 14, 2016 on guidelines for FLCs and rural branches. In terms of this circular, FLCs and rural branches were advised to conduct two types of camps viz. - Special camps for people newly inducted into the financial system (1 camp per month) for a period of one year and target group specific camps 1 each for five target groups' viz. farmers, small entrepreneurs, school children, senior citizens and SHGs. The one year period for conduct of special camps for people newly inducted into the financial system has come to an end in January 2017.

2. Given the recent developments on withdrawal of legal tender status of Specified Bank Notes and the focus on going digital, the policy on conduct of camps by FLCs and rural branches of the banks has been revised as under:

Financial Literacy Centres (FLCs): FLCs are advised to conduct special camps for a period of one year beginning April 1, 2017 on "Going digital" through UPI and *99# (USSD)”. Two posters, one on UPI and one on *99# have been prepared for the benefit of the trainers and the audience. The English, Hindi and local language versions of the two posters are available at the financial education webpage of the Bank for download and printing purposes. While the A2 and A3 sizes can be used by trainers, A4 and A5 sizes can be distributed to the general public during the camps.

Besides the special camps on going digital, FLCs will continue to conduct the tailored camps for the different target groups as prescribed in our circular dated January 14, 2016. The tailored content for each target group is currently being prepared and is expected to be shared with banks/FLCs in due course of time. The proposed approach by FLCs and the operational guidelines for conduct of special camps is illustrated in Annex I.

Rural branches of banks: Rural branches of banks are henceforth required to conduct only one camp per month (on the Third Friday of each month after branch hours). This camp will cover all the messages that are part of the Financial Awareness Messages (FAME) booklet and the two digital platforms UPI and *99# (USSD). The proposed approach by rural branches is illustrated in Annex I. In case there are two or more rural branches in a village, the LDM may ensure that the rural branches conduct the camps on rotation basis every month.

Funding support from FIF: FLCs and rural branches of banks are eligible for funding support for the financial literacy camps to the extent of 60% of the expenditure of the camp subject to a maximum of ₹ 15,000/- per camp. For details on funding, please refer circular No. 240/DFIBT-33/ 2015 dated November 13, 2015 issued by NABARD.

Reporting mechanism: The reporting formats prescribed vide circular FIDD.FLC.BC.No. 12/12.01.018/2016-17 dated August 25, 2016 have been modified and the revised reporting formats are as per Annex II (Part A, B and C) for FLCs and Annex III for rural branches. The Annex II quarterly report on FLCs will be submitted by SLBCs/UTLBCs to the respective Regional office of RBI within 20 days from the end of the quarter and Annex III quarterly report on rural branches within 30 days from the end of the quarter.

The above guidelines will come into force from April 1, 2017 and the revised reporting formats will be effective from the quarter ending June 30, 2017. For the quarter ending March 2017, the quarterly returns may be submitted in the format as prescribed in circular FIDD.FLC.BC.No.12/12.01.018/2016-17 dated August 25, 2016.

The impact of the financial literacy camps will be assessed/evaluated on an ongoing basis by the Lead District Officers (LDOs) of Reserve Bank of India.

Yours faithfully,

(Uma Shankar)
Chief General Manager-in-Charge

Enclosures: As above