Latest News
Home
FINANCIAL LITERACY & CREDIT COUNSELLING CENTRES (FLCCs)
(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. But 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 Blocks/Districts/Towns//Cities 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 Curative 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 NABARD 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.
