RBI to educate people on e-transactions, formal sector borrowings and insurance purchases

The Reserve Bank of India (RBI) is about to launch a pilot project to educate people in e-transactions, formal sector borrowings and insurance purchases in collaboration with six NGOs. 

This literacy drive of educating people will be carried out through 80 blocks accross nine states. CRISIL Foundation, Dhan Foundation, Swadhaar Fin Access, Indian School of Micro Finance for Women (ISMW), Samarpit and the PACE Foundation have been selected to execute the pilot project in collaboration with banks.

Only those NGOs have been selected that are registered with the Depositor Education and Awareness Fund ."The Reserve Bank is initiating a pilot project on financial literacy at the block level to explore innovative and participatory approaches to financial literacy," RBI said while inviting expression of interest from agencies to conductimpact assessment of Pilot CFL (Centre for Financial Literacy) Project.

The project will cover states like Maharashtra, Chhattisgarh, Bihar, Odisha, Karnataka, Telangana, Andhra Pradesh, Haryana and Uttar Pradesh across 80 blocks.

 The total cost of the pilot project over a period of three years is Rs 18.40 crore. The aim of the CFL is to inculcate the habit of making a household budget and recording financial transactions, encourage transactions in savings accounts, and active saving by depositing in banks through fixed deposits and recurring deposits.

 Besides, the pilot project aims to ensure people borrow from formal finance institutions and approach banking Ombudsman for redressal of their grievances.

It will also "encourage e-transactions through electronic means viz NEFT, RTGS, IMPS, Internet Banking, Mobile Banking,UPI (Unified Payment Interface) etc", the document said.The NGO will be educating people to buy life insuranceand pension products. 

(With PTI inputs)