State 

Centre for Financial Literacy

Pilot Project:

The Reserve Bank of India and NABARD launched a financial literacy drive in 80 blocks in Nine states on a pilot basis to educate people on e-transactions, formal sector borrowings and insurance purchases. PACE Organization is one of six non-profits empanelled by the RBI to implement the pilot project. PACE Organization set up and manage 10 centers until 2021, five in Nellore District (Andhra Pradesh) in association with Canara Bank (Syndicate Bank); five in Vikarabad (Telangana) with State Bank of India; PACE and its sponsor banks will reach out to 10 Blocks over the next three years.

The PACE have been designed to raise financial awareness, promote good financial practices, and drive sustainable change in behavior, ultimately resulting in informed financial choices and greater sense of control over one’s finances. The centres will use a combination of educational videos, experiential learning and financial planning tools to drive home key messages and benefits of using formal financial services. PACE has been committed to strengthening the financial capabilities of socially and economically disadvantaged communities since 2001. Through these Money Wise centres, PACE want to minimize every household’s financial vulnerability.  PACE believe that promoting good financial practices in the community, creating an enabling environment, and developing a network of trained financial inclusion experts are crucial to driving inclusion at the last mile.

Scaled up Project on Centre for Financial Literacy

The CFL project has been conceptualized by the Reserve Bank in 2017 as an innovative and participatory approach to financial literacy at the Block level involving select banks and non-governmental organization (NGOs). Initially set up in 100 blocks on a pilot basis, the project is now being scaled up across the country to every block in a phased manner by March 2024.

Financial inclusion in the country is poised to grow exponentially with digital savvy millennials joining the workforce, social media blurring the urban-rural divide and technology shaping the policy interventions. Going forward, harnessing the near universal reach of bank accounts across the length and breadth of the country, there needs to be greater focus on penetration of sustainable credit, investment, insurance and pension products by addressing demand side constraints with enhanced customer protection.

The interventions in financial education would have to be customised (local language and local settings) keeping the different target audience in mind. The scaling up of CFL project across the country at the block level would be the cornerstone of community led participatory approaches in our journey towards greater financial literacy.

Our PACE is one of the implementing agencies selected by RBI and assigned to establish 98 CFLs in Telangana state and 52 CFLs in Andhra Pradesh State (Total 150 CFLs) by 01-12-2021.