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.