CFL Moneywise

• The CFL Pilot Project on financial literacy was initiated by RBI in 2017 in nine states across eighty blocks by six Noon Governmental Organizations in collaboration with Eight Sponsor Banks for a period of three years with funding support from Financial Inclusion Fund ( FIF OF NABARD) and respective sponsor banks.
• The NGOs registered with (DEA Fund) for the project were selected through rigorous process of screening. The project was initiated with the objective of exploring innovative and participatory approach to financial literacy.
• The project was subsequently extended to twenty tribal/ economically backward blocks in three states in 2019 with funding from the Depositors Education and Awareness Fund and sponsor banks for a period of two years.
• One of the milestones of the National Strategy for Financial Inclusion is to expand the reach of CFLs to every block in the country. Accordingly , it has been decided to scale up the outreach of CFLs to every block in the country, in a phased manner with one CFL serving three blocks.
• The project cost is being funded from Depositor Education Awareness Fund , Financial Inclusion Fund and part portion being funded by sponsor banks.

Financial inclusion in the country is poised to grow exponentially with digital savvy millennia’s 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 customized (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.

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. PRIYASAKHI MAHILA SANGH, INDORE, is one of six non-profits empanelled by the RBI to implement the pilot project. PRIYASAKHI MAHILA SANGH set up and manage 8 centers until 2022, in six Districts of Madhya Pradesh in association with Bank Of India and NABARD.

PRIYASAKHI MAHILA SANGH 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 centre’s 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. The Organization has been committed to strengthening the financial capabilities of socially and economically disadvantaged communities since 2001. Through these Money Wise centre’s, the NGO want to minimize every household’s financial vulnerability. PRIYASAKHI MAHILA SANGH believes 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.

• Financial Inclusion and Education are two important elements in the Reserve Bank of India's developmental role. The key strategic priorities identified by RBI under the CFL PILOT PROJECT are- To create awareness about financial products and services, good financial practices, going digital and consumer protection.
• Universal access to financial services
• Providing basic bouquet of financial services,
• Access to livelihood and skill development,
• Financial literacy and education
• To promote financial literacy at grass root level in a sustainable manner
• Promote inclusive growth
• Deepen financial inclusion
• Protect the customers by promoting financial literacy