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Support from Financial Inclusion Fund (FlF)
No. NB.DFIBT.HO/6972-7423/DFIBT-23/2018-19 2 July 2018
Circular No. 161/DFIBT-25 /2018
 
The Chairman/Managing Director/Chief Executive Officer
All Regional Rural Banks
All State Co-operative Banks
All District Central Co-operative Banks
 
Dear Sir,
 
Support from Financial Inclusion Fund (FIF) for conducting Financial Literacy Programmes
 
Please refer to our circular No. NB.DFIBT.HO/6137-6622/DFIBT-23/2017-18 (Circular No. 107/DFIBT-24/ 2017) dated 4 May 2017 regarding conduct of “Going Digital” programmes and special camps for target groups through bank branches and Financial Literacy Centres during the year 2017-18 as also regarding discontinuance of grant support from FIF for Financial Literacy Awareness Programmes (FLAPs), Digital Financial Literacy Awareness Programmes (DFLAPs) and FLAPs in schools.
 
Financial literacy is an important tool for creating demand for financial products. Considering this, it has now been decided to adopt a structured policy for imparting financial literacy to different target segments of population. It has, therefore, been decided that need based support will be provided to the banks on financial literacy as assessed by them in tune with their approved Financial Inclusion Plans.  The support will be provided for financial literacy programmes conducted by bank branches/FLCs.
 
Financial Literacy Awareness Programmes may be conducted for different target groups as under:
 
Programmes for people newly inducted in the financial system
Programmes for Adults
Programmes for Farmers, School Children, Senior Citizens, SHGs and Entrepreneurs
Programmes on digital financial literacy covering transactions on ATM, Internet Banking, Mobile Banking,
 
Mobile Wallets, *99#, UPI/BHIM-UPI, Usage of Debit Cards, data security and privacy and safety measures to be adopted while doing e-transactions.
 
Banks have to ensure that at least two programmes per FLC per month are conducted for different target groups as above. Need based financial literacy programmes through rural branches may also be conducted.
 
The topics to be covered under each of the above programmes are given in Annexure-I. It is very likely that the financial literacy needs of a group may encompass different groups, e.g. the financial literacy needs of adults may also cover needs for digital financial literacy like internet banking or mobile banking apart from the topics covered for them. It would, therefore, be desirable that the intimation of conduct of financial literacy programmes and the topics to be covered is given to the customers/people well in advance. 
 
Thrust may be given for conducting the programmes specially in the aspirational districts identified by the Government of India. The list of aspirational districts is enclosed as Annexure-IV.
 
The expected deliverables by conduct of the above programmes are as under:
 
i. Opening of new accounts – BSBD Accounts, Savings, Recurring Deposit and Term Deposit accounts
ii. Issuance of RuPay Debit Cards and  RuPay Kisan Cards
iii. Enrolment for social security schemes viz., PMJJBY, PMSBY and Atal Pension Yojana
iv. Registrations for internet banking and mobile banking facilities
v. Downloading and activation of Banking App and/or BHIM App 
vi. Activation of RuPay Debit Cards and RuPay Kisan Cards
 
The duration of the programme may preferably be for half day to suit the timings/availability of participants in rural areas. 
 
The extent of grant assistance available is as follows :
 
Sr. No. Bank Maximum support under FIF 
 
1 Regional Rural Banks 80% of expenditure or Rs.5000 per programme, whichever is less
2 State/District Central Co-op. Banks 90% of expenditure or Rs.5000 per programme, whichever is less
Support of 100% of expenditure Rs.5,000/- per programme, whichever is less, would be available for programmes conducted by the rural branches/FLCs in the States of Jammu and Kashmir, Himachal Pradesh, Uttarakhand, Chhattisgarh, Jharkhand and Andaman and Nicobar islands.
Support of 100% of expenditure or Rs.6,250 per programme, whichever is less, would be available for programmes conducted by the rural branches/FLCs in North-Eastern States.
 
Process of sanction and release of grant
 
1. Grant assistance will be available only in respect of the programmes for which prior sanction has been taken from NABARD RO. 
2. Banks may submit the proposals for grant assistance in the format given at Annexure-II, to our respective Regional Offices giving the details of programmes proposed to be conducted separately through branches and FLCs, during 2018-19.
3. Grant assistance for the programmes conducted will be available on reimbursement basis and no advance will be released for the purpose.
4. The claim for grant assistance may be submitted on a quarterly basis as per format given at Annexure-III.
 
Yours faithfully,
Sd/-
 
( L. R. Ramachandran )
Chief General Manager
Encls. : As above.
Endt. No. NB.DFIBT.HO/ /DFIBT-23/2018-19 of date
 
Copy forwarded for information and necessary action to :
 
1. The Chief General Manager/Officer-in-charge, NABARD, All Regional Offices
2. The Chief General Manager, CPD/DoS/IDD, NABARD, HO, Mumbai
3. The Secretariat of Chairman, NABARD, HO, Mumbai
4. The Secretariat of DMD (RA), NABARD, HO, Mumbai
5. The Secretariat of DMD (HRD), NABARD, HO, Mumbai
6. The Principal/Director/Joint Director, All Training Establishments
( A. G. Nafade )
 
Deputy General Manager
Encl. : As above.
Annexure-I
Topics to be covered under different Financial Literacy Programmes
1. Programmes for the people inducted newly in the financial system and
Programmes for Adults
a. Income, Expenses and Budgeting
b. Saving
c. Credit and Debt Management
d. Insurance (Life and non-life), Term Insurance
e. Investment
f. Retirement and Pension
g. Financial Planning
h. Govt. Schemes viz., PMJDY, PMJJBY, PMSBY and APY
i. Fraud Protection – Good practices for a safe digital banking experience
j. Grievance Redressal – banking related, insurance related and pension related
k. Risk Vs. Return
l. Customer Liability for Unauthorised Electronic Banking Transactions
2. Programmes for Farmers
a. Kisan Credit Card Scheme
b. RuPay Kisan Card – Why to use, how to use and benefits thereof
c. Crop Insurance – Pradhan Mantri Fasal Bima Yojana (PMFBY)
d. Prompt repayment of crop loan
e. Interest subvention schemes
f. Insurance (Life and non-life)
g. Pension schemes
h. Fraud Protection – Good practices for a safe digital banking experience
i. Grievance Redressal – banking related, insurance related and pension related
j. Risk Vs. Return
k. Customer Liability for Unauthorised Electronic Banking Transactions
3. Programme for School Children
a. Needs versus Wants (must have and good to have)
b. Budgeting 
c. Introduction to Banking – SB Account, Current Account, Recurring Deposits, Fixed Deposits
d. Different types of Loans – Crop loan, Personal loan, Home loan, Vehicle loan, Education loan, etc.
e. Introduction to Insurance
f. Introduction Pension
g. Fraud Protection – Good practices for a safe digital banking experience
h. Grievance Redressal – banking related, insurance related and pension related
i. Risk Vs. Return
j. Customer Liability for Unauthorised Electronic Banking Transactions
4. Programme for Senior Citizens
a. Beware of Ponzi Schemes – Signs of Ponzi schemes and Scams
b. Reporting of Scams to Regulators
c. Grievance Redressal – How to lodge complaints with banks and Banking Ombudsman
d. Investment products suitable for post-retirement life
e. Banking operations for old/sick/incapacitated persons
f. Fraud Protection – Good practices for a safe digital banking experience
g. Grievance Redressal – banking related, insurance related and pension related
h. Risk Vs. Return
i. Customer Liability for Unauthorised Electronic Banking Transactions
5. Programme for Entrepreneurs
a. Who you will turn to for funds to start the unit
b. Loan Application Process
c. Security, Collaterals and Guarantees,
d. Credit Guarantee Trust (The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
e. Terminologies – Assets, Liabilities, Profit & Loss, Current Assets, Fixed Assets, etc.
f. Insurance schemes
g. Pension schemes
h. Fraud Protection – Good practices for a safe digital banking experience
i. Grievance Redressal – banking related, insurance related and pension related
j. Risk Vs. Return
k. Customer Liability for Unauthorised Electronic Banking Transactions
6. Programmes for SHGs
a. KYC for opening of SB account by SHG
b. Good Principles of SHGs
c. Voluntary Savings
d. Margin and Security Norms
e. Insurance schemes
f. Pension schemes
g. Fraud Protection – Good practices for a safe digital banking experience
h. Grievance Redressal – banking related, insurance related and pension related
i. Risk Vs. Return
j. Customer Liability for Unauthorised Electronic Banking Transactions
7. Programme on Mobile Banking
a. Steps for availing mobile banking services
b. Mobile Banking App, BHIM App, BHIM-UPI App with live Demo
c. NUUP (*99#), IMPS, with live demo
d. What is Mobile Wallet and how to use it
e. Precautions to be taken while using Mobile Banking services
f. Insurance schemes
g. Pension schemes
8. Programme on Internet Banking, PoS, Micro-ATM, ATM
a. What is Internet Banking and how to avail internet banking services
b. What is a PoS, micro-ATM, ATM,
c. How to use them
d. How to do Aadhaar enabled transactions on these machines
e. Precautions to be taken
f. Insurance schemes
g. Pension schemes
Banks may develop their own literacy material prepared by them and may also make use of the material and videos developed by other Regulators viz., RBI, SEBI, PFRDA, IRDA, NISM and other organizations like National Centre for Financial Education (NCFE), Data Security Council of India (DSCI) etc. Necessary permission for using the contents may be obtained from the concerned regulator/ agency. The topics provided above are indicative and not exhaustive.
Annexure-II
Format of application for Financial Literacy Programmes
On the letterhead of the Bank
Ref. No. Date 
The Chief General Manager/General Manager
National Bank for Agriculture and Rural Development
Regional Office 
_________________________
Dear Sir,
Support from Financial Inclusion Fund for
Conduct of Financial Literacy Programmes
Please refer to your circular No. _____/DFIBT-     /2018 dated ___ July 2018 on the subject.
In this connection, we propose to conduct ____ Financial Literacy Programmes through our branches and Financial Literacy Centres during 2018-19, for different target groups as indicated in the above circular.
Sr.No. Category Number No. of programmes per month Total programmes till 31.3.19 Amount(Rs.) per programme Total amount (Rs.)
1 Branches
2 Financial Literacy Centres
Total
We request you to communicate your approval for the above at an early date.
Yours faithfully
(Authorized Official)
Annexure-III
On the letterhead of the Bank
Claim for reimbursement of grant for conduct of Financial Literacy Programmes
Ref. : NABARD Circular No. _____/DFIBT-     /2018 dated ____ July 2018
Ref. No. Date 
The Chief General Manager/General Manager
National Bank for Agriculture and Rural Development
Regional Office 
_________________________
Dear Sir,
Support from Financial Inclusion Fund for
Conduct of Financial Literacy Programmes
Please refer to your letter No. _________________________________ dated ________ conveying sanction for conducting ______ financial literacy programmes for different target groups through our branches and Financial Literacy Centres. 
In this connection, we have conducted _______ programmes as per details given in the Annexure. We have incurred an expenditure of Rs.__________ (Rupees ________________________ only) for conducting these programmes and request you to reimburse an amount of Rs.________ (Rupees _____________________ only) to us towards grant assistance.
We certify that programmes have been conducted in accordance with the guidelines and topics indicated in your circular No. ___/DFIBT -    /2018 dated _____ July 2018.
Yours faithfully
Authorized Official
Encl. : As above
Annexure (to be enclosed with the claim letter)
Support from FIF for Financial Literacy Programmes – Details of Programmes conducted
Name of the Bank :
SN Name of Programme Name of branch/ FLC through which programme was conducted Date of programme No. of participants Expenditure incurred (Rs.) Grant assistance (Rs.)
1
2
3
Total
It is certified that the programmes as above have been conducted. As a result of conducting these programmes, the following deliverables have been achieved :
i. ______ new accounts – BSBD Accounts, Savings, Recurring Deposit and Term Deposit accounts, have been opened
ii. ________ RuPay Debit Cards and  RuPay Kisan Cards have been issued to the customers
iii. _______ customers/people have enrolled for social security schemes viz., PMJJBY, PMSBY and Atal Pension Yojana
iv. _________ customers have applied for internet banking and mobile banking facilities
v. _________ customers have downloaded and activated Banking App and/or BHIM App 
vi. _________ RuPay Debit Cards and RuPay Kisan Cards have been activated
(Authorized Official)
Note : Please also send a soft copy of this annexure in excel format to us along with the hardcopy