The Reserve Bank of India (RBI) has prepared and placed a concept paper on financial literacy and credit counselling centres, on its website, inviting for comments and suggestions from the public. The paper has three parts namely Part-A dealing with matters relating to financial literacy, Part-B dealing with those relating to credit counselling and Part-C, the suggested scheme for financial literacy and counselling centres.
Under the chairmanship of C P Swarnkar, chairman & managing director, the central bank had appointed a working group to examine the procedures and processes of agricultural loans. The report in April 2007 recommended that banks should actively consider opening of counselling centres, either individually or with pooled resources, for credit and technological counselling. Based on the recommendations of these working groups, the RBI, in May 2007, had advised all the State Level Bankers’ Committee convenor banks that they might initiate action to set up a financial literacy and credit counselling centre on a pilot basis in any one district, in the state/Union Territory coming under their jurisdiction. Several banks have since taken initiatives in opening credit ounselling centres in the country.
During its mid-term review of the annual policy, 2007-08, the RBI had stated that a concept paper on the subject would be prepared and placed on its website for feedback in order to take this initiative forward. In his Budget speech, the finance minister indicated that retired bank officers and ex-servicemen would be allowed to be appointed as credit counsellors.