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NATIONAL CENTRE FOR FINANCIAL EDUCATION
IMPLEMENTING THE NATIONAL STRATEGY FOR FINANCIAL
EDUCATION
GIRRAJ PRASAD GARG
REGI...
IMPORTANCE OF FINANCIAL EDUCATION
NATIONAL CENTRE FOR FINANCIAL EDUCATION (NCFE)
Freedom from
exploitative
financial
schem...
KEY COMPONENTS OF FINANCIAL EDUCATION
NATIONAL CENTRE FOR FINANCIAL EDUCATION (NCFE)
Understanding Basic
Financial Concept...
A GLOBAL EFFORT
NATIONAL CENTRE FOR FINANCIAL EDUCATION (NCFE)
According to the Organization for
Economic Co-operation and...
5
CONCERNS
• Many financial institutions promoting financial education (FE)
are predominantly making a product pitch
Curre...
NSFE, INDIA
VISION: “Financially aware and empowered Indians accessing
appropriate financial products and services through...
IN INDIA
 To implement NSFE, a specialized institute, the National Centre for Financial
Education (NCFE) has been set up ...
APPROACH
Basic Financial
Education
(By NCFE)
1. Standardization
of Content
2. Uniformity of the
message
irrespective of th...
Other
Ministries
FSDC
Sub-committee of FSDC
Technical Group for Financial Inclusion and Financial Literacy
Representatives...
SNAPSHOT OF CURRENT ACTIVITIES UNDER
NCFE NCFE – Financial
Literacy and
Inclusion Survey
(NCFE-FLIS)
NCFE – Financial
Educ...
Concept
Inclusion in curriculum, is a long process, in
the short-term students can be acquainted
with the concepts of fina...
NATIONAL CENTRE FOR FINANCIAL EDUCATION (NCFE)
NCFE- FINANCIAL EDUCATION WEBSITE
• Website Address: www.ncfeindia.org
• Be...
NCFE – FINANCIAL LITERACY AND INCLUSION SURVEY (NCFE-FLIS)
 Commenced a nationwide baseline survey for assessing the stat...
CHALLENGES
 Multiple stakeholders are involved- reaching a consensus on the activities
 Standardization of content acros...
ROAD AHEAD
 A comprehensive approach is being followed for the dissemination of financial
education
 Joint efforts by th...
THANK YOU
NATIONAL CENTRE FOR FINANCIAL EDUCATION (NCFE)
16
Facebook.com/ncfein
dia
Twitter.com/NCFE_In
dia
email id: regi...
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GP Garg - 2014 Symposium on Financial Education in Korea

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This presentation by GP Garg was made at the High-level Global Symposium on Financial Education: Promoting Long-term Savings and Investments in Korea which explored policies and good practices for supporting long-term savings and investments through financial education and financial consumer protection. Find out more at http://www.oecd.org/daf/fin/financial-education/globalsymposiumonfinancialeducationforlong-termsavingsandinvestments.htm

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GP Garg - 2014 Symposium on Financial Education in Korea

  1. 1. NATIONAL CENTRE FOR FINANCIAL EDUCATION IMPLEMENTING THE NATIONAL STRATEGY FOR FINANCIAL EDUCATION GIRRAJ PRASAD GARG REGISTRAR, NATIONAL INSTITUTE OF SECURITIES MARKETS HEAD, NATIONAL CENTRE FOR FINANCIAL EDUCATION, INDIA HIGH-LEVEL GLOBAL SYMPOSIUM ON FINANCIAL EDUCATION 26-27 FEBRUARY 2014 SEOUL, KOREA NATIONAL CENTRE FOR FINANCIAL EDUCATION (NCFE) 1
  2. 2. IMPORTANCE OF FINANCIAL EDUCATION NATIONAL CENTRE FOR FINANCIAL EDUCATION (NCFE) Freedom from exploitative financial schemes and moneylenders Confidence, knowledge & skills to manage financial products & services Financial Inclusion and Behavioral Change Avoidance of over indebtedness Promotes entrepreneurshi p, saving and investment Reduces strain on social programs and pension plans 2
  3. 3. KEY COMPONENTS OF FINANCIAL EDUCATION NATIONAL CENTRE FOR FINANCIAL EDUCATION (NCFE) Understanding Basic Financial Concepts Understanding the key financial products needed through one’s life Making good financial choices Developing skills, confidence and attitude towards financial risks and opportunitiesBetter Consumer Protection 3
  4. 4. A GLOBAL EFFORT NATIONAL CENTRE FOR FINANCIAL EDUCATION (NCFE) According to the Organization for Economic Co-operation and Development (OECD), National Strategy for Financial Education promotes A smoother and more sustainable co-operation between regulators and stakeholders Avoids duplication of resources Allows development of articulated and tailored roadmaps with measurable and realistic objectives based on dedicated national assessments 4
  5. 5. 5 CONCERNS • Many financial institutions promoting financial education (FE) are predominantly making a product pitch Current Practices • No standardization of content. FE is being imparted in a variety of ways with no uniformity in the concepts being taught. • Wholesome view needs to be taken with focus on the entire financial sector rather than small pockets. Missing the big picture • An emerging economy needs infrastructure to keep pace with growth. Indian households, with growing ambitions, also need a large corpus to meet their life stage goals. Both these require sustained long-term savings. • Absence of a social security system and prevailing low insurance penetration, there is a need to promote long-term savings. Need of long-term savings
  6. 6. NSFE, INDIA VISION: “Financially aware and empowered Indians accessing appropriate financial products and services through regulated entities with necessary financial education and adequate grievance redressal mechanism.” MISSION: “To undertake massive Financial Education campaign to help people manage money more effectively to achieve financial well being by accessing appropriate financial products and services through regulated entities with fair and transparent machinery for consumer protection and grievance redressal.” GOALS Create awareness and educate consumers on access to financial services, availability of various types of products and their features Change attitudes to translate knowledge into behaviour Make consumers understand their rights and responsibilities as clients of financial services 6
  7. 7. IN INDIA  To implement NSFE, a specialized institute, the National Centre for Financial Education (NCFE) has been set up with the support of :  Reserve Bank of India  Securities and Exchange Board of India  Insurance and Regulatory Development Authority  Pension Fund Regulatory Development Authority  Forward Markets Commission  Ministry of Finance, Government of India  National Institute of Securities Markets (Implementing Body)  The Education boards are also part of the implementation process  Implementation under a technical group headed by Deputy Governor, Reserve Bank of India with representation from all the Financial Sector regulators, Government of India & Education boards. Presence of organizations of such significance shows the importance attached to financial education on the National Agenda 7
  8. 8. APPROACH Basic Financial Education (By NCFE) 1. Standardization of Content 2. Uniformity of the message irrespective of the mode of delivery Sector-Specific Financial Education (By respective Regulator) 1. Should be product-neutral 2. Manufacturer- neutral Product-Specific Financial Education Complete information to the customer by the seller For illiterates (Very Important for any FE Program) 1. Palatable content 2. Innovative modes of delivery 8
  9. 9. Other Ministries FSDC Sub-committee of FSDC Technical Group for Financial Inclusion and Financial Literacy Representatives from state education departments RBI Basic (FE) for Adults Sector Specific Product Specific IRDA PFRDASEBIMoF for facilitation / MHRD for implementation Basic Financial Education (FE)through schools NCFE/NISM Maintenance of financial education website Development of content Research Data collection and monitoring of FE PROPOSED STRUCTURE 9
  10. 10. SNAPSHOT OF CURRENT ACTIVITIES UNDER NCFE NCFE – Financial Literacy and Inclusion Survey (NCFE-FLIS) NCFE – Financial Education Website (NCFE-FEW) Financial Education through school curriculum NCFE – National Financial Literacy Assessment Test (NCFE-NFLAT) Assessment of needs through international experience NATIONAL CENTRE FOR FINANCIAL EDUCATION (NCFE) 10
  11. 11. Concept Inclusion in curriculum, is a long process, in the short-term students can be acquainted with the concepts of finance through this initiative. Target Group School students of Classes VIII to X to assess their basic financial knowledge on topics like money, budgeting, banking, investment , insurance, retirement planning and so on. Highlights 1. The test was conducted on 11th & 12th January, 2014. 2. 2000 schools & 1,00,000 students registered 3. The test would be made an annual feature in the school calendars NATIONAL CENTRE FOR FINANCIAL EDUCATION (NCFE) 11
  12. 12. NATIONAL CENTRE FOR FINANCIAL EDUCATION (NCFE) NCFE- FINANCIAL EDUCATION WEBSITE • Website Address: www.ncfeindia.org • Being developed to become a one-stop for all financial education material. 12
  13. 13. NCFE – FINANCIAL LITERACY AND INCLUSION SURVEY (NCFE-FLIS)  Commenced a nationwide baseline survey for assessing the state of financial inclusion and financial literacy.  Aid to assess as well as yield benchmarks of core financial literacy and inclusion indicators at the various sub group levels and to measure its rate of change on a continual basis to assess the efficacy of various financial education interventions including those under NCFE.  Status: Survey report expected in August, 2014  FINANCIAL EDUCATION THROUGH SCHOOL CURRICULUM  NSFE Document recognizes that students should be educated about financial matters as early as possible in their lives. It is proposed to introduce it in an integral manner in their school curriculum from Class VI to X.  Status: Discussions are underway ASSESSMENT OF NEEDS THROUGH INTERNATIONAL EXPERIENCE • Models developed by similar economies are under-study to avoid reinventing the wheel. ACTIVITIES UNDER NCFE 13
  14. 14. CHALLENGES  Multiple stakeholders are involved- reaching a consensus on the activities  Standardization of content across the board is critical.  Inclusion of the financial literacy material in the school curriculum is a long process. Negotiations with the education boards for the inclusion are on.  Making citizens realize importance of financial education.  India is a vast and diverse nation. Creating financial education (FE) campaigns customized for such an audience is an uphill task. Also, given the geography of the region, innovative modes of disseminating FE have to be devised 14
  15. 15. ROAD AHEAD  A comprehensive approach is being followed for the dissemination of financial education  Joint efforts by the financial sector regulators and the Education Boards to make financial education part of school curriculum (e.g. inclusion in School Curriculum will have a snow-ball effect)  Three- tiered approach under NSFE (Basic, Sector-Specific and Product-Specific Financial Education) is being followed. Separate programs would be designed for the illiterates.  NCFE-NFLAT is proposed to be a compulsory annual test for the school students. Similar test is proposed for higher classes and college students  The Survey would be conducted every three years to understand the impact of the efforts under NCFE and to take policy decisions  Institutional Framework: The entire strategy is being implemented through existing institutional mechanism so avoid duplication of efforts. 15
  16. 16. THANK YOU NATIONAL CENTRE FOR FINANCIAL EDUCATION (NCFE) 16 Facebook.com/ncfein dia Twitter.com/NCFE_In dia email id: registrar@nism.ac.in Tel No.: +91-22-66735100-05

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