Introduction to Financial Literacy Centres (FLCs)
Financial literacy centres are formed with the grant assistance of NABARD to
take up such activities that promote financial literacy, awareness about banking
services, financial planning and amelioration of debt related distress of an individual. It
helps to provide financial counselling services in a non-intimidating environment
using local languages. Its main aim is to provide education to the people in rural
and urban areas on financial planning, responsible borrowing, proactive and early
savings, debt counselling, micro pension, insurance and educate about various financial
products and services available from the formal financial sector. Its one of the
objectives is to formulate debt restructuring plans for borrowers in distress and
recommend the same to formal financial institutions for consideration and to advocate
advantages of connecting with the formal financial sector.
The basic focus of FLCs is providing financial literacy. The financial literacy
efforts of FLCs encompass basic issues like the need for saving and starting early
savings, making use of bank services, linking borrowing with repayment capacity,
timely repayment, insurance and pension. The FLCs and rural branches of the banks
conduct outdoor Financial Literacy Camps with focus on financially excluded people.
The Head Office of the bank monitors the financial literacy efforts undertaken by
their FLCs / branches through periodic reporting and also by resorting to random
Financial literacy program is supported by NABARD. NABARD reserves the right to
modify, change and alter the terms and conditions and implementation of the project
depending on requirement which shall be binding on the bank.