RBI unveils National Strategy for Financial Education 2020-2025

Reserve Bank of India (RBI) has launched the National Strategy for Financial Education (NSFE) to be implemented for the period of next five years i.e. 2020 to 2025. This is the second national strategy; the first NSFE was launched in 2013. NSFE 2020-25 has been launched with an aim of achieving a financially aware and empowered India.

National Strategy for Financial Education 2020-2025- Key Points

  • The bank came up with 5-Core Actions approach with this second national strategy.
  • The five Cs highlighted by NSFE 2020-25 are Capacity, Content, Communication, Community, and Collaboration.
  • Here, content refers to the curriculum in schools; where the term “Capacity” is used for developing capacity in intermediaries involved in financial services.
  • Communication and Community are used to create a community led model for financial literacy using communication strategy.
  • Lastly, Collaboration is used to enhance the partnership/collaboration among various stakeholders.

The strategy also suggested adopting robust monitoring and framework to evaluate to the progress made.

National Centre for Financial Education

The first NSFE was launched by National Centre for Financial Education. It is a Section 8 (Non-Profit) company that is promoted by the Reserve Bank of India, Pension Fund Regulatory and Development Authority (PFRDA) and Insurance Regulatory and Development Authority of India (IRDAI). Its key objective is to promote Financial Education across India for all sections of society as per National Strategy for Financial Education of Financial Stability and Development Council. Its vision is “A financially aware and empowered India.”