National Strategy on Financial Education (2020-25)

It was framed by National Centre for Financial Education in consultation with Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), Insurance Regulatory and Development Authority of India (IRDAI) and Pension Fund Regulatory and Development Authority (PFRDA).

  • The Strategy recommends adoption of a Multi-Stakeholder Approach to achieve financial well-being of all Indians.

Financial Literacy and Education

  • Financial Literacy is defined as a combination of financial awareness, knowledge, skills, attitude and behaviour necessary to make sound financial decisions and ultimately achieve individual financial well-being.
  • Financial Education is defined as the process by which financial consumers improve their understanding of financial products, concepts and risks and to make informed choices to improve their financial well-being.

Objectives: Inculcating financial literacy concepts among the various sections of the population to make it an important life skill.

  • Encourage active savings behavior and participation in financial markets
  • Develop credit discipline and encourage availing credit from formal financial institutions
  • Improve usage of digital financial services in a safe and secure manner
  • Manage risk through relevant insurance cover
  • Plan for old age and retirement through coverage of suitable pension products
  • Knowledge about rights, duties and avenues for grievance redressal

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