Anatomy of FLC - AN evaluation

Abstract

This article is an attempt to evaluate the structure and composition of FLC (Financial Literacy Centres) exclusively formulated by RBI in order to inculcate the financially illiterate individual into Financial Literate. Financial inclusion is viewed as a key indicator of a country's long-term development. In India, banking reforms began in 1969 and 1980 with bank nationalisation, but it wasn't until 2005 that the Reserve Bank of India (RBI) emphasised the need of inclusive banking in its Annual Policy Statement for 2005-06. It instructs banks to pool their resources (financial and technological) in order to reach out to all financial goods and services offered by the banking sector. When the Reserve Bank of India realised that the traditional banking system was out of reach for the poor in India, it directed banks to make Financial Inclusion a commercial priority. To that end, the RBI has devised a number of initiatives targeted at reducing financial exclusion.