Government plans to focus on financial literacy; postmen to tutor rural India on banking system

"The idea is to turn a post office into a financial literacy hub. We will organise weekly literacy camps and selected post office employees will undergo a structured training programme developed by banks on financial literacy," said M S Ramanujan, Member (Banking and HRD), Department of Posts.

 

India Post is among the 11 successful entities that recently got in-principle approval for a payments bank licence from the Reserve Bank of India. Tentatively named as 'India Post Payments Bank,' the entity will have an initial capital of Rs 300 crore.'

 

"We are looking to leverage our entire postal network," said Ramanujan. He said banks will pay a small fee to use the services of the postal department depending on the location, details of which are being worked out.

 

A senior finance ministry official said the government is looking to focus on financial literacy as part of its financial inclusion programme. "Now that the accounts have been opened, we want to ensure that people take advantage of all other schemes, including soft loans under the MUDRA Yojana," said the official, who did not wish to be named.

 

So far, about 18.86 crore accounts have been opened under the Pradhan Mantri Jan Dhan Yojana (PMJDY), with deposits of nearly Rs. 25,700 crore.

 

"Around 40% of these accounts have zero balance. We want them to develop a habit of banking, so that they can have a credit history and use other services," the official said.

 

The Centre had last year launched three social security programmes - the Pradhan Mantri Suraksha Bima Yojana (PMSBY), the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and the Atal Pension Yojana (APY) - to bring the excluded under the fold of formal financial services. The drive is billed as 'Jandhan to Jansuraksha' or people's money to public security.

 

The government has set a target of Rs. 1.22 lakh crore for loans to be given by staterun banks to promote new entrepreneurs under the Pradhan Mantri Mudra Yojana, which will seek to "fund the unfunded".

 

ET View : The Postman Rings a Second Time

 

As services and requirements change, so will jobs. A robust system should be able to leverage the existing infrastructure, including human resources, to perform new functions. The decision to leverage the familiarity and trust associated with the postman to improve financial inclusion is a smart move.

 

The government could also consider redefining the role of other government functionaries to improve the manner in which different programmes and schemes are accessed by the rural population.

 

Source : http://economictimes.indiatimes.com