Financial Literacy Center

Financial Literacy Centers (FLCs) is a center to provide banking sevices and products related information and financial advice to the rural or unbanked masses. Financial Literacy is the ability to understand how money works in our day today functions and how someone manages it, how he/she invest it and how a person offers it to others.

More specifically, it refers to the set of skills and knowledge that allows an individual to make informed and effective decisions with all of their financial resources. Financial Inclusion and Financial Literacy are twin pillars. While Financial Inclusion acts from supply side providing the financial market/services what people demand, financial Literacy stimulates the demand side- making people aware of what they can demand.

As per RBI guidelines, the Bank has set up Financial Literacy Centers (FLCs) with the following objectives:
• To facilitate financial inclusion through provision of two essentials i.e Literacy and easy access.
• To disseminate information regarding the central bank and general banking concepts to various target groups, including schools and college students, women, rural and urban poor, defense person and senior citizens.
• For effective use of financial services by common man.

By using SMPAY solution, financial institution may offer below services in Financial Literacy center (FLC):
• Provide financial counseling services through face-to-face interaction as well as through other available media.
• Education on responsible borrowing ,
• Proactive and early savings,
• Offering debt counseling to individuals who are indebted to formal / informal financial sectors;
• Educate the people in rural and urban areas with regard to various financial products and services available from the formal financial sector.
• Make the people aware of the advantages of being connected with the formal financial sector.
• Formulate debt restructuring plans for borrowers in distress.
• Take up any such activity that promotes financial literacy, awareness of the banking services, financial planning and amelioration of debt-related distress of an individual.
• Make people aware of the social security schemes available and help them to utilize the benefits of the schemes like pension, health insurance etc.