Setting up of Centre for Financial Literacy ( CFL) - a Pilot Project on Financial Literacy by RBI
The CFL pilot project on financial literacy was initiated by RBI in 2017 in nine states across eighty bocks by six Non-Government Organizations (NGOs) in collaboration with eight sponsor banks for a three year period, with funding support from Financial Inclusion Fund (FIF) of NABARD and respective banks. The NGOs, registered with DEA Fund Cell, DoR for the project were selected by RBI through a rigorous process of screening. The project was initiated with the objective of exploring innovative and participatory approaches to financial literacy.
The project was subsequently extended by RBI to twenty tribal/ economically backward blocks in three states in 2019 with funding from the Depositor Education and Awareness (DEA) Fund and sponsor banks for a period of two years ( to sync with the three years 80 CFL project)
One of the milestones of the National Strategy for Financial Inclusion (NSFI: 2019-2024) is to expand the reach of CFLs to every block in the country. Accordingly, it has been decided by RBI to scale up the outreach of CFLs to every block in the country, in a phased manner with one CFL serving three blocks. The Standard Operating Procedure (SOP) as applicable to CFLs has already been communicated by RBI to respective sponsor Banks.
Presently, RBI has identified three adjoining blocks to be serviced by CFLs as part of the FL process. In Karnataka state, currently around 114 blocks have been identified by RBI for this purpose. Two NGOs, DHAN Foundation and MOTHER Ron have been identified as CFLs in the state.
RBI, Bengaluru has held preliminary discussions with these two NGOs during March 2021. They are in discussions with the sponsor banks, Canara Bank, State Bank of India and Bank of Baroda, for entering into Memorandum of Understanding (MoU).