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Financial Literacy Centres – Issues and Way Forward
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The country has adopted a bank-led model for financial inclusion. A lot of initiatives undertaken by Government of India, Reserve Bank of India and banks could not yield desired result as they were addressing supply-side issues. The financial literacy was considered essential to generate demand for financial products and services. The task of imparting financial literacy to the masses was institutionalised and banks were advised to set up Financial Literacy Centres (FLCs) for this purpose. These FLCs have helped to improve financial inclusion of people, particularly in rural areas and among disadvantaged sections of society. However, these FLCs are facing several constraints and require support to improve their effectiveness. This article examines various issues affecting these FLCs and suggests measures to improve their functioning.
Keywords
Financial Literacy Centres, FL Counsellors, Lead Bank, Financial Inclusion.
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