Source: 12th Plan -Planning Commission of IndiaThe National Mission on Skill Development, under the Chairmanship of Hon’ble Prime Minister of India has set a target of preparing 500 million skilled persons by 2022. On the other hand it is expected that approximately 75 to 80 million jobs will be created in India over the next 5 years; 75% of these new jobs will require vocational training to enhance the employability prospects. There is a pronounced ‘skill gap’ both in terms of quality and quantity; and current vocational education and training infrastructure is not geared to meet industry requirements (CII report on case for setting sector skill councils, 2009). This is a contradiction of scenarios – supply demand mismatch on the one hand and rising population 83 of educated unemployed. At present only 2% of the work force in the age group 15-29 has undergone formal vocational training and 8% have had non formal vocational training. 93% of the workforce is in the unorganized sector. Vocational education and training is provided in India by several educational institutions / organizations functioning under about 17 different Ministries of the Government of India. In spite of this, of the 12.8 million new entrants to the workforce every year, the existing skill development capacity is only 3.1 million.
Source: E&Y ReportIndia has the world’s youngest work force with a median age way below that of China and OECD countries. Half the population of India was younger than 25 in 2010. It will change to half the population being under 28 in 2030, making India a very young country for the next 20 years.India is expected to grow at a rate of 8%, on an average, in the next 10 years5. More than 700 million Indians are estimated to be of working age by 2022. Out of these, more than 500 million require some kind of vocational or skill development training.
Source: Planning Commission Report 2008 & ILOWorking Group ‘Secondary and Vocational Education’ was formed as part of 12th Five Year Plan which recognized the need for capacity building.
Availability: More Vocational training centers and need for change in vocational education (12th plan)Accessibility: Disparities in terms of income level, education level, geographic divide etcAdaptability: Focus on target groupAcceptability: Training facilities, methods, Govt schemes, infrastructure etc
Vocational Training: Vocational training programs in India fall outside the formal schooling cycle. It is institution-based with varying entry requirements as well as course durations. The proportion of practical to theoretical instruction in vocational training programs is also higher than in vocational education. It is open to students who leave school after completing anywhere from Grade 8-12. Programs are operated by Industrial Training Institutes (ITIs) and Industrial Training Centers (ITCs). It comes under the auspices of the Ministry of Labour and Employment (MoLE) and the Ministry of Human Resource Development (MHRD). Administrative responsibility is held by the Directorate General of Employment and Training (DGET), located within the MoLE. ITIs and ITCs operate under the guidance of DGET, which formulates policies and lays down standards and technical requirements such developing curricula, instructor training, and skills testing. It governs a number of specialized training-related institutions. 2) Vocational education in India refers specifically to vocational courses offered in school Grades 11 and 12 under a centrally sponsored scheme termed ‘Vocationalization of Secondary Education’. Vocational education falls under the purview of the Ministry of Human Resources Development (MHRD).
Source: www.nird.com (data as on 9/4/2013)RSETIs are Rural Self Employment Training Institutes, an initiative of Ministry of Rural Development (MoRD) to have dedicated infrastructure in each district of the country to impart training and skill upgradation of rural youth geared towards entrepreneurship development. RSETIs are managed by banks with active co-operation from the Government of India and State Governments.
Several anti-poverty programmes have been in operation focusing on the poor and the unemployed in the rural and urban areas. Over the years the poverty alleviation and employment generation programmes have been strengthened to generate more employment, create productive assets, impart technical and entrepreneurial skills and raise the income levels of the poor. RBI monitors the anti-poverty programmes which are sponsored by Central Government. There are two major programmesvizSwarnjayanti Gram SwarojgarYojna (SGSY) and SwarnaJayantiShahariRozgarYojana (SJSRY) meant for poverty alleviation and employment generation in rural and urban areas respectively. These programmes are implemented through credit linkage with commercial banks and subsidy allocations through the concerned Ministry’s budgetary allocations. The beneficiaries under these schemes are rural below poverty line / urban below poverty line people, minorities and SC/STs including OBCs . All the beneficiaries under these schemes falls under the category of weaker sections which are eligible to get credit under priority sector lending. Credit given by commercial banks under these schemes during the last three years is given in Annex I & II. Government has approved the restructuring the SGSY as the National Rural Livelihoods Mission (NRLM), to be implemented in a mission mode across the country. NRLM’s mandate is to reach out to all the poor families, link them to sustainable livelihoods opportunities and nurture them till they come out of poverty and enjoy a decent quality of life. The core belief of National Rural Livelihoods Mission (NRLM) is that the poor have a strong desire and innate capabilities to come out of poverty. They are entrepreneurial. The challenge is to unleash their innate capabilities to generate meaningful livelihoods, which enable them to come out of poverty. The first step in this process is motivating them to form their own institutions. Their true potential is realized when they are provided sufficient capacities to manage the external environment and easy access to finance, and are enabled to expand their skills and assets and convert them into meaningful livelihoods. This requires continuous handholding support by their institutions. An external dedicated, sensitive support structure, from the national level to the sub-district level, is required to induce such social mobilization, institution building and livelihoods promotion.
Government has approved the restructuring the SGSY as the National Rural Livelihoods Mission (NRLM), to be implemented in a mission mode across the country. NRLM’s mandate is to reach out to all the poor families, link them to sustainable livelihoods opportunities and nurture them till they come out of poverty and enjoy a decent quality of life. The core belief of National Rural Livelihoods Mission (NRLM) is that the poor have a strong desire and innate capabilities to come out of poverty. They are entrepreneurial. The challenge is to unleash their innate capabilities to generate meaningful livelihoods, which enable them to come out of poverty. The first step in this process is motivating them to form their own institutions. Their true potential is realized when they are provided sufficient capacities to manage the external environment and easy access to finance, and are enabled to expand their skills and assets and convert them into meaningful livelihoods. This requires continuous handholding support by their institutions. An external dedicated, sensitive support structure, from the national level to the sub-district level, is required to induce such social mobilization, institution building and livelihoods promotion. NRLM Values The core values which will guide all the activities under NRLM are as follows: Inclusion of the poorest, and meaningful role to the poorest in all the processes Transparency and accountability of all processes and institutions Ownership and key role of the poor and their institutions in all stages – planning, implementation, and monitoring Community self-reliance and self-dependence
In order to provide adequate training to the youth and develop necessary skills, the Government of India took steps to improve the skill training scenario in the country. In 2009, the government formulated the national skill development policy that laid the framework for skill development, ensuring that individuals get improved access to skills and knowledge.Key features of the National Skill Development policy• Scope: The skill development policy includes:• Institution-based skill development, including it is/ vocational schools/technical schools/ polytechnics/ professional colleges, etc.• Learning initiatives of sectoral skill development organized by different ministries/ departments• Formal and informal apprenticeships and other types of training by enterprises• Training for self-employment/entrepreneurial development• Adult learning, retraining of retired or retiring employees and lifelong learning• Non-formal training, including training by civil society organizations• E-learning, web-based learning and distance learning • Institutional framework: The policy lays down three the institutional framework comprising:• Prime Minister’s National Council on Skill Development• National Skill Development Co-ordination Board• National Skill Development Corporation (NSDC)• National Council for Vocational Training (NCVT)The policy states the roles and responsibilities of stakeholders, which include the government, industry, trade unions, local governments, civil society institutions and all skill providers. • Promotes the expansion of outreach, equity and access under the skill development initiative: The skill development initiative requires that there is a considerable amount of capacity expansion, innovative delivery approaches and PPPs. The policy provides for equal access of skill development for women, disadvantaged groups (SC, ST and OBCs), minorities, disabled persons and economically challenged people.• Lays down standards for quality and relevance: The policy provides for quality standards to achieve global competitiveness. It lays downs standards for:• Quality assurance (based on validation of qualifications for ensuring that qualifications reflect market needs, validation of training process, accreditation of training providers/institutions, research and information) • Quality of infrastructure• Quality of trainer• National vocational qualification framework• Labor market information systems and HR planning mechanisms• Emphasizes on skill development for the unorganized sector: The policy lays down special emphasis on skill development for the unorganized sector. The policy provides for having a separate institutional mechanism to plan, implement and monitor the skill development for the unorganized sector. It focuses on having target groups within the unorganized sector, literacy and soft skills, recognition of prior learning, and skill development for self-employment.The Indian government recently developed ‘The National Skill Development Policy’ to provide skills to a huge population and make them employable. The core operating principles of the National Skill Development Policy are:Government financial support must complement private investment: The Central Ministries must focus on areas where private investment in skilled development is unlikely to be available or forthcoming. The Government would aim at useful public-private partnerships.States as key actors: The States being the key actors in Skill Development would set up overarching integrated framework for action for Skill Development through State level Skill Development Missions.Deployment of funds: The funds would be deployed more for activities than for buildings and other hard assets. However, upgradation of machinery and equipment, teaching and learning aids will be a continuous process. Creation of infrastructure in latest technology, need-based new initiatives, creation of infrastructure in rural, remote and difficult areas will continue.Focus of modular courses, open architecture and short term courses: With fast changing skills in the labour market, focus would be on short, relevant and effective courses that would get candidates into the workplace. They will be welded through NVQF to maintain dynamism and open to feedback.Separate financing from delivery: Today Government funds are only available for government delivery. National Skill Development Corporation will support private skill development initiatives. Following financing options will be explored:a) Link financing to outcomes: Today public and private training is financed largely on inputs viz. number of courses, number of students, faculty, etc. Efforts would be made to move towards Government financing linked to placement ratios and outcomes.b) Focus funding on candidates: The focus would be on funding the candidates rather than institutions to create choice. This could be structured as a scholarship, skill voucher, outcome based reimbursement, etc.Create infrastructure for on-the-job-training and encourage apprenticeships: The enabling infrastructure for large number of formal apprentices needs to be built that includes modification to the Apprentices Act, 1961.Publicise rating and outcome information on training institutions: A framework of accreditation and infrastructure for information dissemination around measurable criteria on institutions will be created. Ratings of public and private institutions would be put on public domain.Effective assessment and credible certification: Quality assured learning, credible assessment and certification will be developed. This will allow employers to use the certificate as a proxy to fast track job applicants.Restructure employment exchanges as career guidance centres: Employment Exchanges will be restructured as career guidance centres to channelize candidates into jobs, apprenticeships and training.Expand formal employment: Formal employment is not only fiscally attractive but more amenable to financing innovations. This will require a review of existing State and Central legislations which encourage informal and unorganized employment.Source: Ministry of Labour and Employment; Government of India
Source: 12th plan
“Of late, employability of graduates coming out of our educational system is becoming a matter of great concern. I am told only 25% of the general graduates across all streams have employable skills.”— E Ahamed, (Minister of State for HRD and External Affairs)
Fl ppt 1
FINANCIAL INCLUSION & FINANCIAL
Yuva Parivartan’s 3rd International
Summit on Skills Development
Dr. DEEPALI PANT JOSHI
RESERVE BANK OF INDIA
National Mission on Skill Development,
under the Chairmanship of Honourable Prime
Minister of India has set a target of preparing
500 million skilled persons by 2022
Expected Job creation
Target: 500 million
on needs of both learner and job
Partnerships among various stakeholders
of physical and human
infrastructure for learners skill development
invest in training
-to combat with the..
Challenges faced by India
Increasing capacity and capability of the existing system to
ensure equitable access for all
Maintaining quality and relevance
Creating effective convergence between school education
and the government’s skill development efforts
Creating institutional mechanism for research development
quality assurance, examinations and certification,
affiliations and accreditation
Mobilizing adequate investment for financing skill
Vocational Education Qualifications
Introduction of NVEQF at Secondary and
Higher Secondary Education (Classes IX – XII)
National Institute of Open Schooling (NIOS)
On February 28th presenting The Union Budget
for 2013-14 Finance Minister P. Chidambaram
“ The link between policy and welfare can be
expressed in a few words: opportunities,
education, skill, jobs and incomes”
“ There is a compelling case for equity but it is
also necessary if there is to be sustained growth.
A country’s most important resource is its
ICT, physical infrastructure
Advanced curriculum framework
training and skill development
Inclusion is the process of ensuring
access to appropriate financial products and
services needed by all sections of the society in
general and vulnerable groups such as weaker
sections and low income groups in particular at
an affordable cost in a fair and transparent
manner by mainstream institutional players
• Financial Inclusion and Financial Literacy are twin pillars.
While Financial Inclusion acts from supply side providing the
financial market/services what people demand, Financial
Literacy stimulates the demand side – making people aware of
what they can demand.
Financial Literacy Fair & Appropriateness
Financial Inclusion Access
• Developing Economies face the problem of low level of
literacy, poor accessibility and low demand. Therefore it is
necessary for developing an Index for measuring both
Access as well as the level of Literacy.
Spread – How to provide
banking services to villages with low population
Evolving of an Appropriate Business Model &
an Efficient Delivery Mechanism
Financial Literacy – How to increase financial
awareness mainly amongst the excluded
How to have a National Level Coordination of
all stakeholders like Banks, Governments, Civil
Societies, NGOs etc. required to achieve the
objective of financial inclusion & literacy.
Encouraged Electronic Benefit Transfer for routing social
security payments through the banking channel.
Separate program for Urban Financial Inclusion initiated
Roadmap for providing banking services – A structured
way of covering villages. In the first phase villages with
population above 2000 was targeted. The focus has now
shifted to villages with population less than 2000.
Financial Inclusion Plan for Banks - All domestic
commercial banks - public and private sector have drawn a
Board approved 3 year Financial Inclusion Plan (FIP)
starting April 2010.
Self-set targets - FIPs to be integrated with Business plan
of the banks
Banks advised to finalise their next 3 year FIP for the
Banking connectivity has been extended to 2,11,234
villages up to December 31, 2012 from 67,694 villages in
March 2010. 5694 rural branches have been opened.
Numbers of Business Correspondents have increased
from 34,532 to 1,52,328.
1714.27 lakh Basic Savings Bank Deposit Accounts,
317.33 lakh Kisan Credit Cards and 31.14 lakh General
Credit Cards remain outstanding as on December 31,
Share of ICT based accounts have increased substantially
- Percentage of ICT accounts to BSBDAs has increased
from 25% to 45%
ended Mar ended Mar
Total No. of Branches
No. of Rural Branches
No. of branches in unbanked villages
Total number of CSPs deployed
Banking Outlets >2000 -Total
Banking Outlets <2000- Total
Banking Outlets - Branches
Banking Outlets - BCs
Banking Outlets - Other Modes
Banking Outlets -TOTAL
Urban Locations covered through BCs
BSBDA Total (No. in lakh)
BSBDA Total Amt. (Amt. in ` crores)
OD facility availed in Basic Savings Bank Deposit A/c (No. in lakh)
OD facility availed in Basic Savings Bank Deposit A/c (Amt. in ` crores)
KCCs-Total-No. in Lakh
KCCs-Total-Amt In ` Crores
GCC-Total-No. in Lakh
GCC-Total-Amt In ` Crores
ICT A/Cs-BC-Total Transaction -No. in lakhs
ICT A/Cs-BC-Total Transactions –Amt. in ` crores
Financial Inclusion and Financial Literacy are
twin pillars: Financial Literacy stimulates the demand side
– making people aware of what they can
Financial Inclusion acts from supply side
providing the financial market/services what
A large population of alphabetically illiterate population requiring basic financial knowledge
A large section of financially excluded population- need to be
told of benefits of financial inclusion and also to be provided
A large growing segment of educated middle class-requiring
A growing capital market with increasing retail participationrequiring financial education and consumer protection
A growing insurance market with participation of private
players - need consumer protection and financial education
A large section of workers having no pension
A move from Defined Benefit Pension Schemes to Defined
Contribution Pension Schemes
Hence, a large workforce need to be told about riskiness of
various investment portfolios
Financial Literacy & Financial inclusion to go
together- Financial Stability Development Council Mandated to focus on Financial Inclusion and
A technical group on Financial Inclusion and
Financial Literacy under aegis of FSDC–Coordinating
the efforts of all Financial Sector Regulators
National strategy on Financial Education prepared
Financial Literacy-To be included in School
Curriculum at National Level
658 Financial Literacy Centers (FLCs)
functioning as at the end of December 2012
1.5 million people educated during the period
April to December 2012
Literacy material- Messages for
Unbanked audience - Lucid manner-Simple
To be used as standard curriculum by banks
during their financial literacy activities
Issued Guidelines on Conduct of Financial
Literacy Camps-Mass Scale awareness-FLCs
(650+) -At least once in a month-Quarterly
Why Save ?
Why save regularly and consistently ?
Why start saving early in your life ?
Why save with banks ?
Why borrow within Limits ?
Why borrow from banks ?
Why borrow for income generating purposes ?
Why repay loans ?
Why you should keep money aside regularly and
consistently during your earning life for pension in old
What is interest? How moneylenders charge very high
key is establishing an appropriate
Business Delivery Model through the
involvement of all stakeholders to make
Financial Inclusion a reality
Access to financial services and Financial
Education must happen simultaneously
It must be continuous and must target all
sections of the population simultaneously
Thank you !!!
Assistance provided by Bipin Nair, AGM, Geetha Nair AGM and Mruga Paranjpe,
Manager in preparing the presentation is gratefully acknowledged
A particular slide catching your eye?
Clipping is a handy way to collect important slides you want to go back to later.