RBI launches National strategy for Financial Education for 2020-25

The Reserve Bank of India has come up with the Second National Strategy for Financial Education (NSFE) for the time period of 2020-25. The document of the apex bank recommended a ‘5 C’ approach with the objective of the circulation of financial education in the country.

What is the National Strategy for Financial Education 2020-25?

It is a document, published by RBI, that looks forward to developing financial services, financial literacy across the country through the implementation of various targets. The NSFE 2020-2025 is the second one of its kind. The first NSFE was documented for 2013-18 by the National Centre for Financial Education.

What is the ‘5 C’ approach for the dissemination of financial education?

The ‘5 C’ approach for dissemination of financial education recommended by NSFE 2020-25 includes ‘Content’ development, ‘Capacity’ building, ‘Community’ model, ‘Communication strategy’, ‘Collaboration’ of stakeholders.

Key highlights of the documents

• NSFE 2020-25 has been designed to strengthen several parts of the society for the ultimate development of knowledge, skills, behaviors necessitated for better control of money and future planning.
• Financial stability will be achieved through the adoption of a multi-stakeholder outlook.
• The document intends to spread financial awareness through the concept of financial literacy by providing financial education.
• It will make sure Safe and secure handling of the digital mode of financial service.

National Centre for Financial Education

It is a section 8, non-profit organization according to the Company act 2013 which is promoted by RBI, SEBI, IRDAI, and PFRDA. The vision of the organization is “A financially aware and empowered India”.

Month: Current Affairs - August, 2020