The National Strategy for Financial Education (NSFE): 2020-2025 documents has been released by the Reserve Bank of India (RBI).

Try this question for mains:

Q.What is the role of Financial Education in ensuring financial inclusion in India?

What is the Strategy?

• The NSFE for the period 2020-2025, the second one after the 2013-18 NSFE, has been prepared by the National Centre for Financial Education (NCFE) in consultation with all the Financial Sector Regulators (RBI, SEBI, IRDAI and PFRDA.
• Other stakeholders include (DFIs, SROs, IBA, and NPCI) under the aegis of the Technical Group on Financial Inclusion and Financial Literacy (TGFIFL) under the Chairmanship of Deputy Governor, RBI.

Key recommendations

• The strategy recommends the adoption of a multi-stakeholder approach to achieve financial well-being of Indians.
• The document has recommended a ‘5 C’ approach for dissemination of financial education in the country. These include an emphasis on:

1. development of relevant content in the curriculum in schools, colleges and training establishments,
2. developing capacity among the intermediaries involved in providing financial services,
3. leveraging on the positive effect of the community-led model for financial literacy through appropriate communication strategy, and
4. enhancing collaboration among various stakeholders

Other objectives

• The strategic objective is also towards improving usage of digital financial services in a safe and secure manner; as well as bringing awareness about rights, duties and avenues for grievance redressal.
• To achieve the vision of creating a financially aware and empowered India, certain strategic objectives have been laid down including:

1. Inculcating financial literacy concepts among various sections of the population through financial education to make it an important life skill
2. Encouraging active savings behaviour and developing credit discipline

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