SEBI, RBI for financially aware and empowered India

MUMBAI: Financial sector regulators, including RBI and Sebi, today proposed a nationwide survey for assessing financial inclusion and literacy in the country and educate 500 million adults, besides providing financial education to school children.

The draft 'National Strategy for Financial Education' seeks to "create a financially aware and empowered India" and convert savers into investors.

It pitches for a five-year action plan for financial literacy with initial focus on four sectors -- banking, securities market, insurance and retirement planning.

The strategy, the draft said, is to undertake a massive financial education campaign to help people manage money more effectively to achieve financial well being by accessing appropriate financial products and services.

"In India, we need to convert savers into investors," the draft, pared under the aegis of the Sub Committee of the Financial Stability and Development Council (FSDC) and simultaneously released for comments by all financial sector regulators, it said.

On more participation of domestic retail investors in securities market, the draft said it will reduce dependence on foreign investors and domestic savers reaping benefits of corporate growth and reducing strain on government for investment in national infrastructure.

Acknowledging that increasing range and complexity of products has made it very difficult for an ordinary person to take an informed decision, the draft said financial literacy will help in protecting society and individuals against exploitative financial schemes and exorbitant interest rate charged by moneylenders.

Financial education will help to avoid over-indebtedness, improve quality of services and make wise financial decisions, the draft said.