Source: Reserve Bank of India.
Original press release available here.
MUMBAI, April 3 – The Reserve Bank of India has, today placed on its website, a concept paper on Financial Literacy and Credit Counselling Centres for public comments. The paper has three parts: Part-A deals with matters relating to financial literacy, Part-B deals with those relating to credit counselling and Part-C outlines the suggested Scheme for Financial Literacy and Counselling Centres.
Comments and suggestions on the concept paper may please be sent to the Chief General Manager-in-Charge, Rural Planning and Credit Department, Reserve Bank of India, Central Office, Mumbai or through email so as to reach latest by April 30, 2008.
It may be recalled that the Working Group to Examine the Procedures and Processes of Agricultural Loans (Chairman: Shri C.P. Swarnkar), appointed by the Reserve Bank, had recommended in its report (April 2007) that banks should actively consider opening of counselling centres, either individually or with pooled resources, for credit and technological counselling. Another Working Group constituted by the Reserve Bank to suggest measures for assisting distressed farmers (Chairman Shri S.S. Johl) had also suggested that financial and livelihood counselling are important for increasing viability of credit.
Based on the recommendations of these working groups, the Reserve Bank had in May 2007 advised all the State Level Bankers’ Committee (SLBC) convenor banks that they may initiate action to set up a Financial Literacy and Credit Counselling Centre (FLCC) on a pilot basis in any one district in the State/Union Territory coming under their jurisdiction. Several banks have since taken initiatives in opening credit counselling centres in the country.
In its Mid-term Review of the Annual Policy for 2007-08, the Reserve Bank had stated that a concept paper on the subject would be prepared and placed on its website for feedback in order to take this initiative forward. Recently, in his Budget speech for 2008-09, the Finance Minister indicated that individuals such as retired bank officers, ex-servicemen, etc., will be allowed to be appointed, among others, as credit counsellors. The concept paper on Financial Literacy and Credit Counselling Centres has been prepared and placed on the website in this context.
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