Financial sector regulators,including the RBI,the Sebi and the IRDA,have proposed a nationwide survey for assessing financial inclusion and literacy in the country in the draft National Strategy for Financial Education that seeks to create a financially aware and empowered India and convert savers into investors.
The draft,prepared under the aegis of the sub-committee of the Financial Stability and Development Council (FSDC),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.
The survey should have the following elements: the state of financial inclusion i.e. whether one has saving account,loan account,mutual fund investment,insurance policy,pension etc. The state of awareness of financial products and the state of financial competency such as the concept of compound interest,present value of money,annuity etc, it said.
On delivery channels for financial education,the draft policy said that it should start at school and that people should be educated about financial matters as early as possible in their lives.