To Chairman/MD & CEO
Scheduled Commercial Banks
Literacy by FLCs (Financial Literacy Centres) and rural branches - Policy
Please refer to our circular
FIDD.FLC.BC.No.18/12.01.018/2015-16 dated January 14, 2016 on
guidelines for FLCs and rural branches. In terms of this circular, FLCs and
rural branches were advised to conduct two types of camps viz. - Special
camps for people newly inducted into the financial system (1 camp per
month) for a period of one year and target group specific camps 1 each for
five target groups' viz. farmers, small entrepreneurs, school children,
senior citizens and SHGs. The one year period for conduct of special camps
for people newly inducted into the financial system has come to an end in
2. Given the recent developments
on withdrawal of legal tender status of Specified Bank Notes and the focus
on going digital, the policy on conduct of camps by FLCs and rural branches
of the banks has been revised as under:
Financial Literacy Centres
(FLCs): FLCs are advised to
conduct special camps for a period of one year beginning April 1, 2017 on
"Going digital" through UPI and *99# (USSD)”. Two posters, one on UPI and one on *99# have
been prepared for the benefit of the trainers and the audience. The
English, Hindi and local language versions of the two posters are available
at the financial
education webpage of the Bank for download and printing
purposes. While the A2 and A3 sizes can be used by trainers, A4 and A5
sizes can be distributed to the general public during the camps.
Besides the special camps on
going digital, FLCs will continue to conduct the tailored camps for the
different target groups as prescribed in our circular dated January 14, 2016. The tailored
content for each target group is currently being prepared and is expected
to be shared with banks/FLCs in due course of time. The proposed approach
by FLCs and the operational guidelines for conduct of special camps is
illustrated in Annex I.
Rural branches of banks: Rural branches of banks are henceforth required to
conduct only one camp per month (on the Third Friday of each month after
branch hours). This camp will cover all the messages that are part of the Financial Awareness Messages
(FAME) booklet and the two digital platforms UPI and *99#
(USSD). The proposed approach by rural branches is illustrated in Annex I. In case there are
two or more rural branches in a village, the LDM may ensure that the rural
branches conduct the camps on rotation basis every month.
Funding support from FIF: FLCs and rural branches of banks are eligible for
funding support for the financial literacy camps to the extent of 60% of
the expenditure of the camp subject to a maximum of ? 15,000/- per camp.
For details on funding, please refer circular No. 240/DFIBT-33/ 2015 dated
November 13, 2015 issued by NABARD.
Reporting mechanism: The reporting formats prescribed vide circular FIDD.FLC.BC.No.
12/12.01.018/2016-17 dated August 25, 2016 have been modified
and the revised reporting formats are as per Annex II (Part A, B and C) for FLCs and Annex III for rural
branches. The Annex II quarterly
report on FLCs will be submitted by SLBCs/UTLBCs to the respective Regional
office of RBI within 20 days from the end of the quarter and Annex III quarterly
report on rural branches within 30 days from the end of the quarter.
The above guidelines will come into
force from April 1, 2017 and the revised reporting formats will be
effective from the quarter ending June 30, 2017. For the quarter ending
March 2017, the quarterly returns may be submitted in the format as
prescribed in circular
FIDD.FLC.BC.No.12/12.01.018/2016-17 dated August 25, 2016.
The impact of the financial
literacy camps will be assessed/evaluated on an ongoing basis by the Lead
District Officers (LDOs) of Reserve Bank of India.
Chief General Manager-in-Charge
Enclosures: As above