National Strategy for Financial Education (NSFE)

• Vaid's ICS, Lucknow
• 23, Aug 2021

Why in News:

The Reserve Bank of India (RBI) has released the National Strategy for Financial Education (NSFE) for the next five years (2020-2025) to disseminate financial education in the country.

• Under this, the central bank has recommended a ‘5-Core Actions’ approach for dissemination of financial education in the country. The first such strategy for implementation was released in the year 2013.
• On June 18, 2020, as per RBI, the strategy has been approved by the FSDC-SC in its 24th meeting.
• However, the document was made public on August 20, 2020.

What are the 5-Core Actions?

The 5-Core Actions are as follows:

1- Content for financial education to all the Indians (including curriculum in schools, colleges and training establishments).

2- Developing Capacity and Code of Conduct for the providers of financial education.
3- Community to disseminate financial literacy in a sustainable manner.
4- Communication for using technology, media and innovative ways of communication for dissemination of financial education messages.
5- Enhancing Collaboration to streamline the efforts of various stakeholders for financial education.

Objectives of NSFE:

1- The strategy aims to create a financially aware and empowered India. This includes financial education to all Indians, enabling them to understand the role of money in their life.

2- The mission also aims to improve the research and evaluation methods to assess progress in financial education.

3- It also aims at improving digital financial services in a safe and secure manner.

4- The strategy also aims to cover suitable pension plans for retirement.

Facts for Prelims:

Valley of the Five Lions:

• The Panjshir Valley(also spelled Panjsheer or Panjsher; literally Valley of the Five Lions) is a valley in north-central Afghanistan, 150 kilometres (93 mi) north of Kabul, near the Hindu Kush mountain range.
• It is divided by the Panjshir River.