The Visa Global Financial Literacy Barometer (2012) report highlights that Indians are among the least financially literate globally, particularly affecting youth and women, with only 1.9 months of expenses saved on average for emergencies. The document emphasizes the importance of financial literacy and planning to improve personal finances, reduce reliance on loans, and prepare for financial responsibilities in the future. Financial stability, inclusion, and literacy are interconnected and vital for a country's economic development, which calls for targeted efforts in educating various demographics about financial management.

1. Investor Awareness
Programme.

5. VISA Global Financial Literacy Barometer(2012):
Key Findings

6. Key Findings Continues…………………
• Indians are among the least financially literate people across
the globe with youngsters and women struggling most with
their finance knowledge due to lack of discussions within the
families on money management issues, says a report by
credit card firm Visa.
• The survey found that the average savings set aside by
Indians for an emergency is 1.9 months – close to the survey
average of 2 months.
• Chinese respondents were the best at saving, with an average
of 3.9 months of expenses saved. Pakistani respondents had
the least saved, with 0.8 months of expenses set aside.

7. • When it comes to investing people are not very serious to save enough
money and invest them properly so that it grows well.
• Only after years of working they come to realize that they have done a
very bad job when it comes to investing their money.
• Lets Find out why should you feel you should use your money
properly……here are some interesting facts that I should remind you
when comes the matter of money….
• (Source:http://www.jagoinvestor.com/2015/07/why-to-invest-money.html)

8. Self help……

9. • The most basic reason to invest your money is to protect it
from inflation.
• The reason is very simple that "money will decrease after
many years in its purchasing power”.
• So you need to invest money properly so that you are able
to at least buy the same quantity tomorrow or preferably a
larger quantity.
• Eg: A Rs 100 note will not be able to buy the same thing in
future, what it can buy today.

10. • Financial Independence: Everyone wants to work but
exactly not becoming money slaves
• If you invest your money properly you will never ever
get free from your work
• So start creating a corpus of money you can rely upon.
• And the most important reason that you go for to job
should be “because I love my job” and not “I need to pay
my bills.

11. It is not about cutting down your desires and entertainment in life .Do all that
along with that start creating that corpus, Keep a balance.
To Fulfill your life's Goal: we know that our financial
responsibilities will be coming up in distant future.
They would need some BIG amount for eg: constructing a
new house,Childrens education and many more lining up.
So you need to make sure that you have accumulated that
amount before hand, slowly and steadily.

12. X &Y Theory in Investment
• X refers to the number of years when you go to work and come back
with money to meet your needs.
• it means the money that you normally used to meet all expenses coming
in your way .This is called Active income and money will come only
when you work.
• Y is the number of years which you will spend without earning.
• At that point of time also you have to meet your needs and but the
problem is you will not be working either by choice or mostly you are
unable to do so. So the point is Now where will the money come at that
phase of life.
• So you mainly invest so that you create enough wealth which can
last your Y years.

13. when we are in X yrs phase, we are
not too much concerned about the
Y yrs that is natural because the X
yrs phase itself has many issues.
Kids , House, job, health, parents,
relationships and many issues
which keeps us occupied enough
and only when we approach the Y
phase, we are bit scared and
tensed, but then it gets too late if
we are not aware about the
“Savings & Investments.”

14. In a field one summer’s day a Grasshopper was hopping about, chirping and singing to its
heart’s content.
An Ant passed by, bearing along with great toil an ear of corn he was taking to the nest.
“Why not come and chat with me,” said the Grasshopper, “instead of toiling and moiling in that
way?”
“I am helping to lay up food for the winter,” said the Ant, “and recommend you to do the same.”
“Why bother about winter?” said the Grasshopper; we have got plenty of food at present.” But
the Ant went on its way and continued its toil.
When the winter came the Grasshopper found itself dying of hunger, while it saw the ants
distributing, every day, corn and grain from the stores they had collected in the summer.
Then the Grasshopper knew… It is best to prepare for the days of necessity.

15. Indian Story so far………………….
• In India the term “Financial Inclusion” was first coined in 2004 by then RBI Governor
YV Reddy.
• A committee on Financial Inclusion was appointed by the Government in 2008 under
the chairmanship of Dr.C Ranjarajan.
1. About 50% of the Indian population is
unbanked.
2. Less than 20 % of the population avail the loan
facilities provided by banks.
3. 63% of banks are in Semi-Urban Metropolitan
areas across the country
4. Only 37% of banks are in Rural India.

16. • Nearly 85 % of the population don’t have access to Insurance services in India.
• So far only 15% people have health insurance coverage in India.

17. Financial Literacy on Indian Perspective

18. Financial Literacy on Indian Perspective
• In India the need for financial literacy is of greater importance
considering the low level of literacy and the large section of population
which remain unreached of formal financial set up especially rural areas.
• India being a country with most efficient markets in terms of technology,
regulations and systems. It has one of the saving rates.inspite of this fact
India is being the poorest country the real concern is about where the
savings are invested.
• We need to convert a country of savers to a nation of investors.
• A financially literate population means a country that makes more
efficient use of its financial resources.

19. Financial Literacy on Indian Perspective
• Financially educated consumers in turn can benefit the economy by
encouraging genuine competitions ,forcing the service providers(Banks,
Insurance companies and off course the capital markets)to innovate and
improve their level of efficiency.
• Financial education is especially important among low-income people,
those who use financial services as well as the unbanked, because low-
income people are more likely to take recourse to illegal money-lenders
or fall victim to predatory lending practices by formal financial
institutions.
• Government of India through its various agencies like RBI, SEBI,
NABARD, State Bank of India etc have been trying to give financial
literacy and financial education to its citizens in the last few years.

20. Target Segments for Financial Literacy:
Financial Literacy target segments comprises of all users of Financial
Services. It includes.
1. High Net worth Individuals.
2. Lower and Middle income groups
3. Financially Excluded Resources like Poor's
4. The Providers of Financial Services
5. Policy Makers and Regulators.

21. Financial Literacy -need of the hour:
• Financial Literacy refers to the ability to make informal judgments and
to take effective decisions regarding the use and management of money.
• It enables a person to understand the importance of savings.
• It is all about making an ordinary individuals in to informed and
questioning users of financial services.
• Thus it is not just about having awareness about markets and
investments ,but also about saving patterns,budgeting,Financial
Planning, basis terms of banking and most importantly about being
“FINANCIALLY SMART”.

22. Financial Literacy -need of the hour:
• It focuses on Personal financial education which in turn results in taking
effective actions to improve overall well being and avoid distress in
matters that are financial.
• Less Financial Literate are more likely to have problems with money
management thus more exposed to debt, are less likely to save and can
engage in high cost-credit, are less likely to plan for the future.
• It has been considered as the catalyst for promoting financial inclusion
,financial development and ultimately financial stability.

23. Three Pillars of Financial Stability
FINANCIAL
STABILITY

24. Financial Literacy & Financial Inclusion
• Financial Inclusion and Financial Literacy are twin pillars: -
• • Financial Literacy stimulates the demand side–making people aware of
what they want.
• • Financial Inclusion acts from supply side providing the financial
market/services what people demand .

25. • Financial Literacy has three components:-
• 1. Personal financial management.
• 2. Information about various financial services, products to choose from.
• 3. Operational knowledge.
• Financial literacy should lead to
• Poverty Alleviation
• Community Economic Development
• Asset Building
• Consumer Education and Protection and
• Empowerment

26. Contents of Financial Literacy:
1. Transaction of money:
This area includes the awareness of the different forms and purposes of
money and handling simple monetary transactions such as everyday payments,
spending, value for money, bank cards, cheques, bank accounts and currencies.
2. Risk and Return Analysis:
• Recognition of certain financial products (including insurance) and processes
(such as saving) used to manage and offset various risks (depending on
different needs and circumstances)
• Applying knowledge of the ways to manage risk including the benefits of
diversification and the dangers of default on payment of bills and credit
agreements

27. • Knowing about and managing risks and rewards associated with life
events(Theft, Loss of job, Health Problems), the economy and other
external factors(fluctuations in interest rates and exchange rates; and
other market changes.)
• Knowing about the risks and rewards associated with substitutes for
financial products; in particular such as saving in cash, or buying
property, livestock or gold; and borrowing from informal lenders
3. Financial Landscape:
• This content area covers knowing the rights and responsibilities of
consumers in the financial marketplace and within the general financial
environment.
• Knowledge of rights and responsibilities, and ability to apply it.
• Knowledge and understanding of the financial environment.

28. • Knowledge and understanding of the impact of financial decisions
including on others:
• understand that individuals have choices in spending and saving and
each action can have consequences for the individual and for society;
• Recognise how personal financial habits, actions and decisions impact at
individual, community, national and international level.

29. Financial Planning & Process

30. Financial Planning is a strategy used to achieve financial success based
upon the development and implementation of financial goals.

31. Human Life Cycle – Disciplined Planning
Income
AgeBirth & Education Earning Years Retirement
Phase I Phase II Phase III
22 yrs 60 yrs
Marriage
Child birth
Child’s Education
Child’s Marriage
Housing
22 yrs 38 yrs Over 25 - 30 yrs
Having a
Financial Goal is
primary to
starting a
Investment Plan.

33. Financial Planning is …
• To develop well defined goals
• Divide the goals into short term and long term goals
• To look at the current income, expenses and savings
• To map out well defined strategies to turn the dreams
into reality.
• Revise and monitor if the performance of your plans are
not up to the mark of your expectations.(Rebalancing)

34. HOW TO DO A FINANCIAL PLAN
34

35. 1. Setting Financial Goals:
• A lot of planning should be needed when we analyse our
Financial goals.
Visual Treat :when you write your financial goals it become
easy for you to visualize it.It should be specific and realistic.
Identifying the time specific goals:
o Short term goals which you want to achieve within 1
year.(Childrens short term educational needs)
o Medium term goals which you want to achieve within 5
years
o Long term goals which you want to achieve after 5 years.

36. 2.Analyzing your current Financial Position
• After setting your financial goals, its time to position yourself where are
you in terms of Financial stability.
• We can make a clear picture of it by making two important statements
Cash Flow statements: Statement which represents your information
about income and expenditure.
Net worth: Net worth is an overall statement of your assets and
liabilities.
Update it regularly inorder to incorporate realistic goals. Remember
these two statements do not replace each other but they are supportive
each other.

38. 2.Analyzing your current Financial Position
Budgeting: Budgeting helps you
make a clear and perfect summary
about expenses and spending
habits.you can make out the areas
where you spent more and
effectively tune accordingly.

39. Role of Financial Planner………………
• After analyzing your current financial position you will be able to
identify where you are and where you want to reach in terms of
financial freedom. Here you can opt the services of a financial
planner who will help you to attain your financial goals by using
various stratragies….
 Who is a financial Planner?
• A Financial Planner is someone who uses the Financial Planning
process to help you figure out how to meet your life goals.
• The Planner can take a 'big picture' view of your financial situation
and make Financial Planning recommendations that are suitable
for you.
• The Planner can look at all your needs including budgeting and
saving, taxes, investments, insurance and retirement planning
(Source:http://www.fpsbindia.org/scripts/LearnFinancialPlannin
gBasics.aspx)

40. 3.Investment Planning & Risk Tolerance
• The two important variables that one need to understand while making
investment decision is with regard to risk tolerance and time.
• Various investment options are available in the market by way of
Guaranteed and Non-Guaranteed Return Investment.
• Guaranteed return Investment constitute:
• These schemes offer guaranteed return with very low risk and liquidity
which varies from high to low.
• Fixed deposits, Post office schemes, Provident fund etc.
• Though GOI savings bonds and bank fixed deposits are the safest, the safest road
isn't always the best one.

41. 3.Investment Planning & Risk Tolerance
• Non-Guaranteed Return Investment: These schemes offers high
return with low risk in long term and high risk in short term.
• Equity, Mutual funds, Sectorial equity funds etc.
• The Second Factor – Time ….
How much time do you want to/are able to spend on
investing?
How active do you want to be in the management of
money?

42. 4.Asset Allocation
• In simple terms asset allocation means the distribution of investments
in different classes of assets such as equity,bonds,gold,cash,real estates
etc. There is no single asset which offers positive or high returns under
all conditions.it depends upon the factors like.
Time Horizon : It means when you require money to meet your financial
goals.it may be short, medium and long term horizons.
Risk Appetite: It means how much risk you can manage on every
investment you make. Based on risk appetite investors are of three types
Aggressive, conservative &Moderate.
Different life stages: Each and every life stages have different goals and
liabilities, so investment plan varies in accordance with change in life
stages.

43. 43

44. 44

45. LIFE CYCLE INVESTMENT GUIDE
65%
20%
10%
5%
Mid Twenties
Stock Bonds Real estates Cash
45
55%
30%
5%
10%
Late 30's to 40's
Stock Bonds Real Estates Cash

46. LIFE CYCLE INVESTMENT GUIDE
44%
38%
10%
8%
Mid Fifties
Stock Bond Real Estates Cash
46
25%
50%
15%
10%
Late 60's & beyound
Stock Bond Real Estates Cash

47. 5. Tax Planning:
• When you invest your money,you should also check whether you will get
tax exceptions or tax benefits.
• It will not only increase your real returns but also reduces your tax
liability.

48. 6.Retirement Planning:
• Retirement planning is the process of understanding the how much it
COSTS to live at retirement ,and coming up with a plan to distribute
assets to meet any income shortfall.
• In the simplest sense, retirement planning is the planning one does to be
prepared for life after paid work ends, not just financially but in all
aspects of life.
• The non-financial aspects include such lifestyle choices as how to spend
time in retirement, where to live, when to completely quit working, etc. A
holistic approach to retirement planning considers all of these areas

49. 7.Rebalancing
• Rebalancing is the periodic adjustment of your portfolio to protect your
current gain with effective risk management to achieve your financial
goal.
• In simple terms it involves buying or selling investments to ensure that
the original asset allocation of your portfolio remains steady.
• Rebalancing your portfolio on a regular basis maintains the desired
returns in your investment strategy.

50. General consensus is that a well-diversified portfolio may
need rebalancing every 12 months.
• There are a number of reasons why you might choose to rebalance your
portfolio:
• Your risk tolerance or goals have changed
• You are considering selling and buying new investments
• To re-weight your asset allocation
• The relative weight of your portfolio in an asset class has changed
according to its performance

51. 9. Monitor Regularly
• You may not need to rebalance your portfolio every year, but monitoring
it will mean you are ready to make changes when needed.
• Regularly assessing what the market is doing and understanding how it
is impacting your portfolio is a key factor in remaining on target to
achieve your investment goals. (Source:www.mywealth.commbank.com.au/learn/managing-
investments/when-and-how-to-rebalance-my-portfolio)

52. Title Layout
Subtitle
Source: world-finance-conference.com/papers_wfc/138.pdf: Rangarajan Committee Report
FINANCIAL
INCLUSION
AFFORDABILITY
ACCESSIBILITY
AVAILABILITY
ADEQUACY
AWARENESS
WHAT IS FINANCIAL INCLUSION
52

53. What you think of the % Indian Population
having bank account????????????????

54. Financial Inclusion during the years
0
10
20
30
40
50
60
2009 2010 2011 2012 2013
35.4
37.6
40.1
42.8
50.1
Series 1
Series 1

55. CRISIL
 An index for measuring financial
inclusion in the country down to
the district level.
 It uses parameters that focus only
on the number of people whose
lives has been touched by various
financial services rather than the
amount deposited or loaned.
 Higher the score higher the level
of financial inclusion.

56. The three parameters for rating Financial Inclusion

57. INDIAN FACTS @ FINANCIAL INCLUSION

58. 1. Scoring considers 652
districts of total 676 districts
in India.
2. Top 4 states : Kerala,Tamil
nadu, Goa and karnataka
3. Bottom 3 states : Bihar,
Manipur, Rajasthan,Nagaland
4. 13 of Kerala’s 14 districts
figure in the top 50 scoring
district.
5. Pradhan Mantri Jan-Dhan
Yojana& Differentiated
anking licences increased
the level of financial
inclusion in the country.

59. Investment Awareness Initiatives by Regulatory bodies in
India.
 Reserve Bank of India (RBI)
 Insurance Regulatory and Development Authority.(IRDA)
 Securities and Exchange Board of India.(SEBI)

60. • Measures by RBI to tackle UNBANKED
INDIA…………………

61. • The banking industry in India has shown tremendous
growth over the last decade. However, this growth has not
reached vast segments of the population, especially the
under privileged sections of the society.
• It has already started tapping the unbanked parts
through bank branches, banking correspondents and
common service centres (CSCs).
• The government wants to boost its network of ATMs from
1.3 trillion at present to 1.63 trillion by the end of next
financial year.

62. • The government has begun mapping gram panchayats to
provide banking services in remote parts of the country.
• Public Sector banks are providing poor and marginalized
sections of the population with a choice of a ‘no frills
account’ where the minimum balance is nil or very small,
but with restrictions on number of withdrawals etc., to
facilitate easy access to bank accounts.

63.  Conducting Town Hall events across the country, including in Tier II and smaller
cities, bringing together commercial banks and other stakeholders
Setting up of a monetary museum by RBI to create awareness about money and
banking among general public and spread knowledge about the history of money.
 Use of mobile Financial Literacy vans by banks in the North Eastern States
 Mass media campaign tie ups with educational institutes, financial awareness
workshops/ help lines, books, pamphlets and publications on financial literacy by
NGOs, financial market players, etc.

64. RBI’s initiatives on Financial Education
 RBI website - A link on Financial Education in the RBI website, containing
material in English, Hindi and 11 vernacular languages, which includes
comic books on money and banking for children's.
 Awareness - distributing pamphlets, comic books, enacting plays and skits,
arranging stalls in local fairs, exhibitions, participation in information /
literacy programmes organized by Press.
 Financial Literacy Centres (FLCs) have been opened by various banks with
focus on the spread of Financial Literacy
• To create awareness about financial products and provision of counseling
facilities for customers of banks.

65. What is insurance and why we need
insurance????
• Most of the time it was
misunderstood by Indians.
• Indians way of thinking about
insurance is all about it as a Tax
saving scheme or investment
tool.
• Do we understand” Insurance as
Insurance”?????????

66. • In simple terms Insurance is a contract between the insured and the
insurance company where by the insured financial risk is covered by the
insurance company .Risk can be in the form of vechicle,property,etc.
When you pass your financial risk to
the insurance companies they
charge you a nominal amount for
taking the risk which is called
Insurance premium.
Why insurance?????
We know that In life unexpected is always expected. Our
life is full of uncertainties with lots of goals, short term
&long term goals, Known goals and Unknown goals.
Insurance is one of the greatest inventions in the field of
personal financial products .But it becomes fatal to
financial life and costly once you end purchasing a
wrong insurance solution.

67. For People think Insurance as an expense:
The fact is that So any expense which gives a foothold and act
as a security towards unforeseen circumstances, is worth
spending.
• The moment someone wants to talk about
life INSURANCE to you, what comes to
your mind?
1. I really don’t need insurance now, I can plan for it
during the last quarter of financial year or my limit of
Rs. 1 lac is over. Now I don’t need insurance policy.
2. How should I ignore this Insurance Agent. He is going
to chase me day and night.
3. How much commission will this agent give back to
me???
4. I am too young to have
insurance………………….RIGHT????

68. 1. What would happen to my family in case I am not
there?
2. Are my disposable assets more than my liabilities?
3. Will my family be able to maintain the standard of
living which they are living right now?
4. Will all financial goals of my family will be met if I am
no more ?
Before opting any insurance one should ask himself some self help questions like:
There are things which is beyond our control and we should be
prepared to such unfavorable incidents and always have PLAN B
with us. So what's is PLAN A???
1. PLAN A will be like everything goes well and one can able to
fulfill his/her goals in life out of his/her income and
investments.
2. If something goes wrong which we cant foreseen today
,Insurance take care if PLAN A

69. Facts and Figures….
• Several factors are responsible for the low levels of insurance penetration
in the country
• low consumer preference
• ‘low consumer preference.
• constrained distribution channels.

70. Financial Literacy Initiatives by IRDA
• In the area of financial literacy, IRDA is also working with the other
financial regulators, namely, the Reserve Bank of India (RBI), Securities
and Exchange Board of India (SEBI) and Pension Fund Regulatory and
Development IRDA (PFRDA) through the Financial Stability and
Development Council (FSDC) platform on a common approach for the
nation as a whole.
• In June 2012”Consumer Education” Website has been launched to
provide various awareness programmes relating to Insurance services
schemes and activities in India. (www.policyholder.gov.in).

71. Financial Literacy Initiatives by IRDA
Awareness programmes have been conducted on
television and radio and simple messages about the rights
and duties of policyholders, channels available for dispute
Redressal have been disseminated through television and
radio as well as the print media through sustained
campaigns in English, Hindi and 11 other Indian languages
Bima Bemisaal:it is the brand name for IRDA’S insurance
awareness campaign with a tag line “"Promoting Insurance.
Protecting Insured". It provides policy holders details
regarding their rights and obligations and informs about
complaints resolution methods. s a part of the Publicity
Campaign under Bima Bemisaal, Consumer Affairs
Department, IRDA, organised an Essay Competition for
student.
.

72. Measures Continues…………………….
• Consumer Bodies :IRDA
encourages consumer bodies to conduct
seminars on insurance, thereby not only
educating the consumer but also
providing a platform for the consumer
to interact with IRDA about insurance.
• Insurance Awareness Survey:
Insurance Regulatory and Development
Authority (IRDA) engaged the National
Council of Applied Economic
Research (NCAER) to carry out a pan-
India survey to assess the levels of
insurance awareness in the country. The
survey was undertaken in 29
states/union territories
• Parameters of the survey:
1. Geographic Analysis
2. Purpose of insurance
3. Source of Information
4. Relevance of Insurance
5. Perceptions of Insurance
6. Decision to take insurance
7. Life and Non-life Insurance:

73. Measures Continues…………………
• IRDA has participated in the “JAGO GRAHAK JAGO” programme in
educating consumers.
• IRDAI Documentary Film: In order to sensitize general public about
IRDA, its role and initiatives in insurance sector regulation and
development as well as policyholder protection and welfare, a
documentary film has been prepared for extensive use which has been
recently launched by IRDA.
• Insurance Research Grant Scheme: To encourage Research works on
insurance and consumer protection with the objective of creating
awareness about insurance and related activities in public as well as
policy holders.

74. By way of Comic Strips IRDA has made their efforts to put the “Investment concept” in
to the mind of people in simple and interesting way. It has also bought out
publications of ‘Policyholder Handbooks’ infavour of awareness initiatives. Its tag line
as follows. “Insurance Made Easy – Ranjan, the insurance consumer.”

75. Only 2% of Indians Invest in Equity
The retail participation in equity
markets is very low despite simpler
processes at the exchanges, says
Ashish Kumar Chauhan, Managing
Director and CEO at Bombay Stock
Exchange (BSE)

76. India has one of the highest savings rates in
the world. But only a small percentage of
household savings in India is invested in the
stock market. Why?????????????

77.  The primary destinations of savings across household categories in India
are banks, post offices, insurance products, and metals.
 There is doubt about the safety of stock market investments.
 Most retail investors find the stock market activities too complex and
difficult to comprehend.
 The continued volatility of the market is considered by many to be a
great demotivating factor.

78.  Other reasons that are cited include procedural complexity,
inability to monitor investments and absence of stable returns.
 Some part of the retail investors believe that stock market
investing can be made more attractive if the quality of
investment advisory services is improved.
 Only 55.6% of the investors are aware of investor education
programmes sponsored by SEBI and Department of Company
Affairs
 The frequent occurrence of scams and frauds is also cited to
be an important reason why ordinary household investors try
to avoid the stock market route.

79. SEBI initiatives on Investor Awareness
Programmes.

80. o SEBI has a dedicated website for investor education wherein study
materials in English and vernacular language are available.
o Listed below are the Financial educational programme for various segments
of the society.

81. • SEBI has empanelled Resource Persons throughout India.
• The Resource Persons are given training on various aspects of
finance and equipped with the knowledge about the financial
markets
• Under ‘Visit SEBI’ programme, School and college students are
encouraged to visit SEBI and understand its functioning.
• SEBI Helpline has been set up in 14 languages wherein through
a toll free number, investors across the country can access and
seek information on various issues.

82. The financial market in India has witnessed lots of changes to make the
market user friendly. These changes are framed inorder to attract
participation of retail investors as well.
To begin with, the revised Direct Taxes Code (DTC) Bill will play a vital
role in encouraging retail investment in the stock market by allowing tax
exemption on long-term capital gains on the sale of listed share.
Enhancing use of stock exchange in the distribution of financial products
will expand the reach and increase ease of buying and selling,
encouraging higher retail participation.
Initiatives by SEBI to Promote Retail Investor Participation.

83. • The proposal to allow mobile trading is an equally important
development. We have seen the success of online trading in India.
• The vast pool of mobile users in the country can be tapped by this
stratragy. Such leveraging of technology will lead to widening of the
investor base in a cost-efficient manner.
• Other regulatory moves, such as requirement of minimum 25% public
shareholding in non-public sector units (PSU) listed companies.
&
• The proposal to enhance the investment limit of retail investors from
Rs 1 lakh to Rs 2 lakh for a public issue are all driven by the same
objective

84. SEBI financial literacy awareness for your children's:
• National Institute of Securities Markets (NISM) is a public
trust and educational institute, established by (SEBI), the
regulator for securities market in India.
• The institute through its educational initiatives strives to
increase financial literacy through a wide demographic and
geographies across India.
• NISM also offers various continuing education and
certification programs for professionals in the financial
sector

85. Pocket Money Programme -Imparting financial education to school
students
The Pocket Money program is developed by NISM to impart basic
financial knowledge to school students of class VIII and upwards.
The program comprises of an eight session course covering various
aspects of Money Management, Budgeting, Investments, Banking, etc.
The program has been started with the objective of cultivating good
money management habits among the children, so that when they
become adult they practice sound personal finance management.

86. • National Centre for Financial Education (NCFE) with joint initiative
of few India’s financial services regulators has organized a test as
National Financial Literacy Assessment Test (NCFE-NFLAT) to
spread financial literacy in India.
• Students from classes VIII, IX and X enrolled in a school affiliated to
any recognized educational boards or trusts in India are eligible to
participate in this test.

87. Thus it is clear that financial literacy is a must for
financial inclusion. Population should have proper
knowledge, behaviors and attitude then only
successful implementation of financial inclusion plan
can be achieved. Financial service providers should
focus on financial literacy, simple and flexible
products and speedy transactions. Products should be
there for all the class of customers.
conclusion