Preamble :
To align with the current financial landscape, the Reserve Bank of India has issued
Revised Guidelines for Financial Literacy Centre and Operational Guidelines for conduct
of camps (copy enclosed) where the Banks have been advised to put in place board
approved policies on the modalities for engagement/recruitment of Financial Literacy
Counsellors advising some key points keeping in view of the following:
Subsequent to the financial inclusion efforts by RBI and opening of accounts by banks
through the PMJDY, considerable ground has been covered in the field of financial
inclusion. Going forward, the focus is going to be on keeping the already opened accounts
active. Financial literacy is central to this in the coming years as it enables consumers to
understand the benefits of formal products and providers and to make choices that fit
their needs and represent good value for money. FLCs and rural branches of banks may
adopt a tailored approach for different target groups viz. farmers, micro and small
entrepreneurs, school children, SHGs, senior citizens etc. There should also be adequate
synchronization at the ground level between the different stakeholders viz. LDM, DDM
of NABARD, LDO of RBI, District and Local administration, Block level officials, NGOs,
SHGs, BCs, Farmers’ clubs, panchayats, PACS, village level functionaries etc. during the
conduct of financial literacy camps. In view of the above, the following Guidelines for
FLCs and Operational Guidelines of the Bank for conducting of camps are proposed
based on Annexure-I (copy enclosed) of revised guidelines on Financial Literacy Centre
of RBI vide Ref. No. FIDD.FLC.BC.No. 18/12.01.018/2015-16 dated January 14, 2016:
Stronger FLC Architecture
Financial Literacy Centres are the building blocks or the basic units that initiate the
financial literacy activities at the ground level. Hence the bank will provide the minimum
basic infrastructure and strengthen the existing FLC Eco-system.
- Each Regional Office will nominate one nodal officer for looking after the task of
Financial Literacy Centre. The said nodal officer will act as Financial Literacy Counsellor
for the entire region and perform all the jobs allocated to them. Financial Literacy
Counsellor should organize at least one camp per month for each target group, as stated
under point no. 2. Adequate publicity may be given before the conduct of the camps.
- The Bank may appoint Financial Literacy Counsellors as per the guidelines prescribed
by RBI and the remuneration/honorarium will be paid as per RBI guidelines / the
commercial rate of the sponsored bank, i.e. Punjab National Bank / as per commercial
rate mutually agreed with the Financial Literacy Counsellors, duly approved by ORMC.
The modalities for engagement/recruitment of Financial Literacy Counsellors in FLCs
are provided below:
Eligibility:
- The applicant should have adequate banking knowledge. Retired Managers/ Senior
Managers of Nationalized banks/RRBs are having preference. Managers/ Senior
Managers of these bank who have opted voluntary retirement will also be considered.
- Upper age limit of the applicant should not be generally more than 62 years to ensure
that at the end of the three years contract, Counsellor’s age does not cross 65 years.
Terms & Conditions:
- The applicant have to submit the application form as per the format, which will be
provided by the Bank, along with photo, copy of relieving order from the bank on
retirement, no objection from the bank to take up appointment after retirement.
- The contract period of the Financial Counsellor will be three years.
- The applicants should not have conducted financial irregularities including overdue in
loans, if any, availed by them. The selected counsellor is required to give an undertaking
to the above effect at the time of accepting the offer of appointment.
- The counsellor is required to execute a stamped agreement with the Bangiya Gramin
Vikash Bank as per the prescribed format at the time of accepting the offer of
appointment.
- If any of the declarations made by the Financial Counsellor has been found false, the
Bank can terminate the contract.
- The incumbent should have Working knowledge of computers.
- The incumbent should have Knowledge of the local language.
- Remuneration at market rates with incentives for better performance will be fixed by
the Bank
Physical Infrastructure:
- The FLC being a part of the Regional office may work form Regional Office or from
nearby Branches.
- Basic amenities like Computers/laptops and printers and furniture and fixtures to be
provided.
- Vehicular support may be provided for FL counsellors.
- Each FLC should have a dedicated Help line for addressing grievances of the public in
the district/ region and the helpline should be adequately publicized.
Skill building of FL Counsellors:
- RBI will organize a workshop/training program in collaboration with CAB, Pune to train
the Financial Literacy Counsellors. Regional offices of RBI will hold workshops at state
level every year as part of the Financial Literacy Week in each state.
Tailored Approach to Financial Literacy and conduct of camps:
In a diverse country like ours, financial education should be customized to meet the
requirements of different target groups, besides the basic financial literacy that every
person is expected to know.
In this regard, FLCs, in consultation to concerned Regional Manager, and rural branches
should identify different target groups at the ground level and conduct camps for a
homogenous audience so that there could be more focus and in depth transmission of
financial education. Going forward, the approach of FLCs and rural branches of banks
on conduct of camps will be as follows and as will be guided by Reserve Bank of India/
NABARD form time to time:
a. Special camps for the newly included people in the financial system, including PMJDY
account holders:
FLCs and rural branches of bank across the service area of the bank should address this
target group on a special footing given that they have recently come into the financial
system. They should be encouraged to make meaningful transactions and start using the
associated benefits of having a bank account.
Target: Minimum of one outdoor camp per month by each FLC and rural branch of
banks. The special camps need to be conducted for a period of one year. In each camp,
efforts may be taken to cover maximum number of participants.
b. Target group specific camps for the following segments:
Farmers, SHGs, Micro and Small Entrepreneurs, Senior citizens, School children, others
(may be identified by the FLCs)
Concerted Approach & financial support:
- FLCs should try to get on board as many stakeholders as possible at the
district/panchayat/village level viz. LDM, DDM of NABARD, LDO of RBI, District and
Local administration, Block level officials, NGOs, SHGs, BCs, Farmers’ clubs,
panchayats, PACS, village level functionaries etc. during the conduct of the camps.
Adequate publicity should be given before the camps are conducted. Distribution of
pamphlets, intimation through panchayat and local administration, media publicity etc.
should be considered to make the camps a success.
- The Bank will follow any other policy of NABARD on funding for setting up of FLCs by
the bank. With regard to detail on funding on financial literacy activities from the
Financial Inclusion Fund, the bank will also follow the guidelines issued by NABARD.
For details contact:
Bangiya Gramin Vikash Bank
BGVB Head Office, BMC House (Beside Sanjay Hotel)
NH 34, Chaltia, Chuanpur
PO Berhampore, District Murshidabad
Pin 7421010
E Mail:- bgvb_fi_cell@bgvb.co.in