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M f transparency some facts
The document discusses the importance of transparency and responsible pricing in financial operations, especially for clients with limited understanding of financial concepts. It highlights the gap between what clients are charged versus what they pay, emphasizing that financial literacy is crucial for enhancing access and fostering trust. Various strategies, including the use of technology and educational initiatives, are suggested to improve financial literacy and ensure better communication regarding financial products.
M f transparency some facts
- 1. Transparency & responsible pricing !! Dr B S Suran General Manager NABARD
- 2. Transparency !! Client & Institutional Capacity willingness
- 3. Transparency !! What it does ? Why How Benefits Improve trust Increasing understanding Drive performance Motivate
- 4. Some facts.. abtthe people we deal with… Is Rs 13*7= Rs28 ? Yes,for the poor its ADD Multiply Divide 13 13 * 28 /7 13 7 13 21 1,3 13 7 13 28 13 13 ------- 21 + ….that’s what they were told 7 28
- 5. How do weenable: client level • No easy solutions….. • Gap is large: “charged vs paid” • Poor appreciate when said in their terms !! • Passbooks: with ROI , weekend balances • Bits and Pieces or wholesome ? • Need for a iterative process !! • Use of mobile, voice recorded messages • Thus; education is the key : financial literacy is an enabler for …better financial access
- 6. At the institutionallevel • Passbooks, Printed repayment schedules • Contain information on contact person for complaints, redressal system, • Ombudsman • Declare base rates / break even rates • Annual reports- mandatory disclosures, third party audits ?? • Lender responsibility ?? • Appreciate that transparency is a precursor for strengthening trust
- 7. Some attempts toimprove FL …in Gujarat • SHG Bank Linkages – basic efforts literacy, numeracy,saving / thrift , loaning, leadership, conflict resolution, bookkeeping, general awareness etc • Publication of pamphlets on FI • Video on debt swaps , OTS etc • Weather insurance…model insurance village with a AWS – • Farmer education . RML cards- fin literacy • Efforts in FL in VDP villages ..
- 8. Thanks for yourtime Email: suranmcid@gmail.com bs.suran@nabard.org