Rural folks likely to get credit lessons from RBI
In its drive towards more financial inclusion, the central bank plans to start credit counselling to the poor and also come out with more material on financial literacy in rural India, according to Reserve Bank of India governor YV Reddy.
By TNN |
MUMBAI: In its drive towards more financial inclusion, the central bank plans to start credit counselling to the poor and also come out with more material on financial literacy in rural India, according to Reserve Bank of India governor YV Reddy.
At a function in a village in Ongole district, Andhra Pradesh, the governor was speaking on what RBI means to the common person. “Sometimes people get into debt out of ignorance or bad luck. They can be advised by well-trained people to get out of the problem with minimal distress. Such schemes exist in other countries and we have studied them. We are experimenting in this area in Maharashtra in a small way. We intend to launch pilot projects in other regions also.”
He also said that RBI has identified a few new areas for a vigorous drive this year. These relate to financial literacy and credit counseling.
“Today the common man is attracted to a lot of choices: some times very risky, when he acquires some surplus money. Where to deposit the money and for what period and at what interest? How to decide between mutual funds, bank deposits, life insurance, etc, against non-bank deposits, chit funds? How to sustain and improve the financial status of the family, to smoothen consumption even if incomes come in lump sum?" he said, underscoring the need for the people to be aware so that they do not lose owing to fake promises and propaganda by some greedy financial vultures.
RBI is in the process of preparing reading and visual material, and will fund the cost of making such material.
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