(Amount in crores)

Concept initiation April 2007 1. By Working Group to examine the procedures and processes of Agricultural Loans (Chairman : Shri C P Swarnkar) appointed by RBI
2. Subsequent Working Group Chaired by Shri S S Johl on the subject
Pilot Start 10.05.2007 RBI advises SLBC Convener Banks to set up FLCC on a pilot basis in one district in the State, under their jurisdiction.
Based on experience Lead Banks may open FLCCs in other districts
Findings of the Concept Paper on FLCCs With the exception of a few, most FLCCs not performing the intended role.
Model Scheme 04.02.2009 RBI formulates a Model Scheme for FLCCs.
Details  are as under-
Objective Provide Free Financial literacy//Education and credit counseling to people in rural and urban areas
Administrative Set Up Banks to set up Trusts/Societies , singly /jointly with other Banks
Board may include respected local citizens.(But no serving Bank Staff)
To begin with FLCCs to be fully funded by Banks
FLCCs may be started at Branch premises to minimize cost.
Should maintain a distinct identity with a proper infrastructure having a toll free number//Email//Fax facility
Counsellors Counselors should NOT be staff of the Bank but -
Retired Bank Officers, Ex Serviceman, etc may be appointed
People with domain knowledge in agri & counseling related to agri and allied activities may be hired
Credit counselors to have sound knowledge of Banking, Law, Finance, requisite communication & Team Building spirit
Training of Counsellors May be arranged at RBIs college of Agriculture Pune
Bankers Institute of Rural Development, Lucknow
Coverage Rural/Semi Urban/Urban/Metropolitan Areas
To begin with FLCCs may be set up at District Headquarters
Types of Credit Counseling Preventive
Providing awareness about--
Aspects relating to deposits & various other financial products
Operation of accounts
Customers rights
Benefits of nomination
Awareness regarding cost of credit
Availability of backward and forward linkages
Use of media//workshops//Seminars

Work out individual debt management plans
Effective debt restructuring plans if necessary in consultation with Bank branch
Charges Counselling to be imparted Free of Cost
Monitoring of FLCCs At State Level
Committee headed By Regional Director RBI
Committee Members-SLBC Convener Bank
Other Banks
IBA, NGOs etc

"While the FLCCs centres would provide financial literacy and credit counseling, the activities of the RSETIs towards skill development//capacity building could be dovetailed with FLCC initiatives for increasing the earnings/debt repaying ability of the distressed borrowers families.