Raghuram Govind Rajan, Governor of Reserve Bank of India (RBI) who consider generation of jobs the most important issue in the country, supported introduction of financial literacy in school curriculum. During his 2-day visit to Madhya Pradesh, where he also admired the state for achieving highest growth rate in the country.
Rajan also met the chief minister of Madhya Pradesh, Mr. Shivraj Singh Chouhan on Friday. On this visit, he gave importance on adding basic financial education in school curriculum up to senior secondary level. He also stated “There is a strong need to run campaign for financial education of school children and farmers”.
According to Financial experts, financial literacy along with financial inclusion and consumer protection forms a trio; which is necessary for securing financial stability. And these three also effect each other.
RBI through group of discussion, it has predicted a five-year time span for its epic education campaign across the country. As per the previous statements embedding financial education into normal curriculum is the most potent way.
Experts are trying to embed financial concepts in school curriculum, along with the education boards such as Central Board for Secondary Education (CBSE), curriculum setting organizations such as National Council of Educational Research and Training (NCERT) and central and state governments
The RBI Governor also spoke on the unresolved issue of loans; that nationalized banks should be helped by government in recovering the debts. He also said that, apart from the training and certification RBI will also reinforce the Banking Correspondent System.
Rajan, also focused on the efforts made in rural banking sector, he said that rural area payment systems will be improved after expansion of mobile banking system and payment bank. He also emphasized on improving cooperative bank’s functioning and to give infrastructure facilities to medium, small and micro entrepreneurship groups.
While highlighting the initiatives of Madhya Pradesh in the areas of entrepreneurship and determined attempts to double the earnings in five years, Chief Minister Chouhan said the ratings of state governments should be made on the financial condition. He also added “States with good financial position be encouraged”.
The Chief Minister asked for a raise in the refinance limit from NABARD to 50% from present allowance of 40% and the Streamline Liquidity Ratio (SLR) in government securities. He also demanded an affirmation on proper flow of cash in banks to pay farmers within the seven days of acquiring the wheat.
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