The first step has been taken by the Reserve Bank of India (RBI) to protect the consumes from the exploitative investment schemes. The RBI has released a National Strategy for Financial on July 16, 2012.
Comments have been invited by the central bank from the stake holders and it hopes that the final guidelines will play a key role in the financial inclusion and inclusive growth, which is one of the top priorities of the government. The RBI said, “It is necessary to quickly formulate and implement a national strategy,” as nearly half of the country’s population is financially excluded.
Financial literacy will help in protecting the society and individuals against exploitative finan cial schemes. Chandra Shekhar Ghosh the chairman and managing director of the country’s largest micro finance firm said “It is easier to do business with educated customers as repayment rate improves with financial understanding”.
Ghosh deals with about 38 lakh ill-informed poor borrowers across the state. RBI in the draft report stressed on the need to impart financial education at the early stages of person’s lifecycle as the rate of school drop out in India is high. Even the Central Board of Secondary Education is likely to take the lead in introducing financial education.