Role of Financial literacy Centers:
Financial literacy focuses on facilitating financial inclusion through provision
of two essentials i.e., literacy and essay access. Imparting knowledge to enable
financial planning, inculcate saving habits and improve the understanding of financial
products leading to effective use of financial services by the common man is the
crux of financial literacy. The education should enable proactive management of
money to avoid debt traps. It should result in enhancement of the economic security
of people aided by use of banking services.
Conducting literacy camps facilitates imparting financial education in a formal
and effective manner. Spread of financial inclusion and financial literacy will
help to capture the untapped business opportunities as small customers are the key
available at the bottom of the pyramid.
Providing financial counseling services through face to face interaction as well
as through other means viz. meetings/seminars/camps etc. including education on
responsible borrowing, proactive and early savings, and offering debt counseling
to individuals who are indebted to formal and/or informal financial sectors.
Educational Institutions are employed to spread banking knowledge. Camps are held
regularly in schools and colleges where the students are imparted financial literacy
to equip them with essential knowledge on banking finance.
Counseling should broadly encompass:
Creating awareness and knowledge about money management, importance of savings,
advantages of saving with banks, facilities provided by the banks and benefits of
borrowing from banks various products offered by the banks, etc.
- Money management is an important aspect in financial planning. Estimating
financial needs, keeping accounts of income and expenses, spending sensibility and
saving for rainy day are the elements of money management.
- Importance of savings needs to be impressed because the common refrain among
the masses is that we do not earn enough so we cannot save. But the fact remains
that every one needs saving and can save. Money is needed for lean periods i.e.
when one is not able to earn. Money is needed for old age, unexpected illness, accidents,
natural calamities, etc. If there is enough savings, such contingencies can be met
from own sources without resorting to borrowings at exorbitant cost.
Where to save?
- Keeping money at home will augment worries about its safety.
- Money saved at home does not grow and pest or rats may even eat away the hard earned
money.
- Therefore the need for saving the hard earned money with a banks.
Why save in a Bank?
- Money kept in a bank is safe as banks are regulated and pool the savings for nation
building.
- Savings account in a bank is the key to all other services.
- Banks do not charge fee for depositing the money but on the other hand pay interest
on deposits and hence the money deposited with the banks grows.
- Wages/salary can be directly credited to the bank account.
- All social benefits like MGNREGA wages, pension, etc, can also be directly credited
to Bank account through Electronic Benefit Transfer (EBT).
- Money kept with the Bank can be used whenever one needs.
- Transactions with banks are transparent and offer other useful services, like loans
and remittances at reasonable cost.
- Nomination facility is available.
- Bank account gives an identity which is recognized by other government agencies.
Role played by Canara Bank:
Canara Bank is the promoter of “Canara Financial Advisory Trust”. The Trust
attributes its success in implementation of financial literacy programme to the
support and guidance provided by Canara Bank. CFAT could make an impact and create
a niche in the comity of fellow Trusts only because of the unstinted co-operation
it receives from Canara Bank at every level of its function. In the initial days
of inception, while framing policy guidelines, the Bank’s support was immense. The
executives overseeing the functions of the Trust at PC & FI Wing in general and
the General Manager in particular evinced much interest and extended wholehearted
support. In appreciating the efforts of the Trust and in projecting the performance
at every level the Bank played a pivotal role which made our presence relevant at
RBI, NABARD and among the Top Executives in Canara Bank.
The Board of Trustees meet bi-monthly to review performance of the Trust/Centers
and evolves policies/guidelines for day to day administration. The bi-monthly Trust
meetings are invariably attended by the General Manager PC & FI Wing along with
his team and always deliberated the proceedings with interest. They were open to
constructive suggestions to improve the functioning of FLCs and approved all the
reasonable expenses to bring in efficiency in the working of the Centers.
The Financial Inclusion Executives operating in various administrative offices of
Banks such as Regional Office and Circle Offices oversee, support and guide the
Financial Literacy Centers in their smooth functioning. The Lead District Managers
functioning in the respective jurisdiction where the FLCs located also provide the
required support and guidance to the Counselors and involve them in the financial
literacy activities undertaken at the District/Block levels.
Canara Bank nominates one of its executive as Trustee which helps in framing policies/guidelines
for day to day administration. Pragathi Krishna Grameena Bank whih is one of the
sponsor Grameena Bank of Canara Bank also nominats one of its executives as Trustee.
Canara Bank assists in appointing Managing Trustee, whenever it is required. Both
Canara Bank and sponsored Grameena Bank co-ordinate in selecting Financial Couonselors
managed by them. Both the Banks also contribute/reimburse the expenses incurred
towards managing their Centers.
Performance Highlights:
The Trust through it’s Financial Literacy Centers administered by it is constantly
working towards spreading banking knowledge among the people in their area of operation.
Financial literacy is imparted through one to one counselling, meeting people at
seminars/camps organized at villages and conducting camps at schools and colleges.
Novel conveying media viz., Yakshagana( dance drama) Beedhi Nataka, Pupet shows,
etc are employed to create long lasting impression in the minds of rural people
on the concept of Banking and related services.
No. of persons educated during 2019-20 rose to more than 2.5 million. As at 31/3/2020 people educated is 26.32 lacs compared with 21.04 lacs (Previous financial year 2018-19) registering a growth rate of 25.09 % . The Centres has successfully surpassed self imposed target of 25.00 lacs (for FY2019-20) under people educated registering actuals of 26.32 lacs. A remarkable achievement in the field of financial literacy made possible by the wholehearted support and co-operation of all the Financial Counselors.
The roles and responsibilities of the Counselors:
- Counselors have to establish rapport with various Government Dept., Banks, NGOs
and SHG.
- Conduct the programmes in the villages. Counselors have to visit the villages/wards
continuously. Counselors are advised to meet/contact in different meetings and seminars
at least minimum of 1500 members every month and visit 12-15 different villages,
interact with them and guide them about the concepts of FLC.
- They meet the farmers and interact with them in the meetings and give clarifications
about their doubts in the matter of Banking activities/financial transactions.
- They have to involve in rural development.
- They have to educate the villagers on banking products and services.
- They have to maintain good liaison with DDM of NABARD and participate in their programmes
- They have to maintain liaison with Bank Mithras.
- They have to keep contact with Educational Institutions and conduct Financial Literacy
Camps in the Institutions.
- They have to attend Gram Sabah’s.
- Each counsellor has area of operation of one entire District/Block.
- They have to associate with local Gram Panchayat and organize the programmes to
educate the villagers and bring changes and development in the villages.
- They have to liaise with the Trust for providing the feedback and carrying out the
instructions of the Trust.
- To liaise with DIC and such other Institutions and conduct programmes on SME. They
also attend Entrepreneurship Development Programmes, Kissan Mahotsav, Krishi Mela,
and take advantage of all forums to spread the message of FLC concepts. They also
take advantage of meeting with Self Help Groups and educate them about the proper
utilization of the loans facilities available from Banks and prompt repayment of
loans.
- Required to submit monthly progress report, tour programme and work done report
before 5th of every month, with a copy of the same to A F Section of controlling
office of the concerned Bank.