RBI, NABARD officials visit Financial Literacy Centre in Anantnag

Srinagar, Aug 06: Officers from the Reserve Bank of India (RBI) and National Bank for Agriculture and Rural Development (NABARD) conducted a joint visit to the Centre for Financial Literacy (CFL) in Anantnag. The CFL is part of an RBI pilot project aimed at exploring innovative approaches to financial literacy at the block level.

Launched in 2021, the project initially covered three states, funded by RBI's Depositor's Education Awareness Fund (DEAF). Subsequent phases are now funded by NABARD's Financial Inclusion Fund (FIF) for a three-year period, covering capital and operational expenses. The project has since expanded, with plans to establish CFLs in every block nationwide, each serving three blocks.

During a financial literacy programme in Deethu Shangus, RBI Assistant General Manager Anoop Sharma explained that CFLs are designed to create financial awareness in remote areas. Anantnag district has five such centers, established through NGOs CRISIL and ResponseNet in Chattergul, Sagam, Dachnipora, Shahabad, and Hiller.

NABARD District Development Manager Rouf Zargar highlighted that CFLs aim to educate people on household budgeting, financial record-keeping, and active saving through bank deposits. Parvez, the Lead District Manager of Anantnag and nodal officer for the project, added that CFLs also encourage borrowing from formal financial institutions and guide people to approach the Banking Ombudsman for grievance redressal.

The main objectives of CFLs include educating people on e-transactions, promoting formal sector borrowing, encouraging insurance purchases, inculcating the habit of household budgeting, and promoting savings through bank accounts and deposits.