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RBI unveils 5 year National Strategy for Financial Inclusion (NSFI): 2019-2024

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In order to promote financial literacy among customers and to provide access to formal financial services in an affordable manner, the Reserve Bank of India (RBI) has released a National Strategy for Financial Inclusion (NSFI) 2019-24. The strategy has been prepared by Financial Inclusion Advisory Committee (FIAC) of the RBI in consultation with the Centre, Securities Exchange Board of India (SEBI), Insurance Regulatory and Development Authority of India (IRDAI), and Pension Fund Regulatory and Development Authority of India (PFRDA).financial

  • NSFI has been finalized and approved by the Financial Stability Development Council (FSDC). The document was formally released by Mahesh Kumar Jain, Deputy Governor, RBI at the High Level Meeting on Financial Inclusion for the North East region convened at Agartala, Tripura.

Here are the key recommendations:

-There should be universal access to financial services wherein every village should have access to a formal financial services provider within a 5-km radius.

-The banking outlets of commercial banks to be increased to provide easy and hassle-free digital process.

-The strengthening of digital financial services in all tier-II to tier-VI centres is required to facilitate a less-cash society by March 2022.

-Every eligible adult should be provided with basic financial services like savings account, credit, micro-life and non-life insurance products, pension product, and a suitable investment product.

-By March 2020, every adult enrolled under the Pradhan Mantri Jan Dhan Yojna (PMJDY) should be enrolled under an insurance scheme and pension scheme.

-The Public Credit Registry(PCR) has to be made fully operational by March 2022.

-The committee has recommended new entrants to the financial system. The entrants should be given the relevant information regarding government livelihood programmes to help them augment their skills.

-Customers have to be made aware of the recourses available for grievance resolution through customer grievance portal or mobile application, by March 2021.

About Reserve Bank of India (RBI):
Headquarters– Mumbai, Maharashtra
Formation– 1 April 1935
Governor– Shaktikanta Das
Deputy Governors– 4 (BP Kanungo, N S Vishwanathan, Mahesh Kumar Jain, Michael Debabrata Patra)