Organization
Financial literacy has assumed greater importance in the recent years, as financial
markets have become increasingly complex. As there is information asymmetry between
markets and the common person, leading to the latter finding it increasingly difficult
to make informed choices financial education becomes imperative. The first decade
of the twenty-first century has seen a universal recognition for spreading financial
literacy among people. The concept of improving financial literacy as a national
project has been gradually building. Given the fact that India is having large population,
a fast growing economy with national focus on inclusive growth and an urgent need
to develop a vibrant and stable financial system, it is all the more necessary to
quickly formulate and implement a national strategy.
Financial inclusion is one of the top most policy priorities of the Government of
India. One of the most visible aspects of the governance has been agenda of social
inclusion of which financial inclusion is an integral part. Financial literacy and
education plays a crucial role in financial inclusion, inclusive growth and sustainable
prosperity. The financial literacy efforts result in better understanding of financial
products within the marginalized communities of the society.
On the Recommendations of Working groups headed by Sri S.S.Johli and Shri C P Swarnakar
Financial Literacy and Counseling Centers were initiated. Initially, Centers were
opened as Financial Literacy and Credit Counseling Centers (FLCCs) with focus on
counseling both preventive as well as curative, rather than education. On 4th Feb.
2009, RBI advised Banks to open FLCCs in their Lead Districts. Centers are to be
Bank neutral and hence to be kept at ‘arms distance’ from the promote Bank. Canara
Bank promoted a Trust christened “Canara Financial Advisory Trust on 8th October,
2010 to take the Reserve Bank initiative forward.