NABARD - Student Internship Scheme 2016-2017 - page 72

• For meaningful financial inclusion, banks and other organisations should take a proactive role
in spreading financial literacy. More financial literacy camps should be organised and maximum
number of people should be educated about the benefits of the scheme.
• Timings of Financial Literacy camps may be suited to the timings of such beneficiary. Camps for the
beneficiary may be held in the evening time to enable them to attend the camp.
• Financial literacy programmes must be tuned to the literacy level of people. 50% respondents in
the research are School dropouts. The financial literacy campaigns must be designed keeping the
education level of people in mind. Use of jargons should be avoided
• More Brick and Mortar branches should be opened in villages so that the villagers have more access
to services.
• Authorities should take necessary steps to include financial literacy programmes in the school
curriculum. It will help to rise a financially educated new generation.
• Private Banks, Insurance companies and other financial service providers may concentrate more
on the village people because they are not yet fully financially included. In the case of private sector
banks, rural branches accounted for just 13.3% of their total branches in March 2013 (while in the
case of public sector the same stood at 33.1%). Opening more branches in rural areas will help the
private players to increase their customer base as well.
• More focus is required on enhancing the risk bearing capacity of the poor. Insurance can play an
important role here. Micro-Insurance is fast emerging as an important strategy for the low-income
people engaged in a wide variety of income generation activities which are exposed to a variety of
• Benefits of social security schemes to vulnerable groups should be the focus. There may be exclusive
programmes/schemes for such target groups.
• Over 70% of total population resides in the rural areas of the country. However, insurance reaches
less than 3% of the total population. Due to high competition and relatively high market saturation
in the urban areas, rural areas provide ample business opportunities for insurance firms –both life
and non-life.
• PACs penetration in rural areas is far more than that of bank branches. Banks may make use of this
largest rural network of cooperatives as BCs. Recent NABARD circular also envisaged that PACs can
be utilized as BCs for CCBs/SCBs.
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