To boost financial literacy in rural communities, the panchayati raj ministry and the Securities and Exchange Board of India (SEBI) have started a programme to equip sarpanches and block level officials in financial planning, investment in equity, budgeting, savings and safeguarding against fraudulent investment schemes.
The aim is to spread securities market literacy, encourage responsible participation in legitimate investment avenues, and protect rural households from financial fraud.
Sources told FE that recently the first training programme on financial literacy of over 100 panchayat representatives from various districts of Maharashtra was held in Pune.
The training programme focussed on aspects of the importance of savings, understanding the securities market, identifying regulated investment opportunities and safeguarding fraudulent financial schemes.
Expanding reach across 2.5 lakh panchayats
“The financial literacy programme will eventually expand to 2.5 lakh panchayats across all states,” an official with the ministry of panchayati raj told FE.
“By involving PRIs, the initiative aims to unlock the vast untapped potential of rural India, ensuring that securities market participation becomes geographically balanced and inclusive,” according to an official note.
It stated that India’s securities market is expanding with dematerialized accounts (DMAT) and mutual funds accounts rising from 5 crore during pre-Covid19 era to 13 crore at present, yet this growth has been largely urban centric.
An official said the initiative aims to empower rural citizens with financial knowledge, protect them from fraud, and connect them with legitimate investment opportunities.
Sources said training will be imparted on practical financial skills including budgeting, saving, insurance, and safe investment practices.
Building a grassroots network of trainers
The National Institute of Securities Market will train officials in panchayats under its faculty development programme. SEBI empanelled trainers in collaboration with trained PRI resource persons, will hold workshops at the district and block levels.
A network of 3,874 Master Trainers is being established across six states – 574 trainers in Maharashtra (covering 287 Blocks), 1,652 in Uttar Pradesh (826 Blocks), 500 in Gujarat (250 Blocks), 528 in Jharkhand (264 Blocks), 504 in Jammu & Kashmir (252 Blocks), and 116 in Tripura (58 Blocks).
Through these trainers, the official said the elected representatives at the block and village level will serve as ambassadors of financial literacy in their communities.
Stating that these local governance bodies are often the first point of contact for villagers seeking guidance or support, an official said by strengthening their financial literacy, the program aims to turn them into credible sources of investment advice and financial protection.
Eventually the initiative is to enable responsible participation in the securities market, promote wealth creation, financial security, and well-being at the grassroots. “It would ensure that even the most remote and underserved communities can benefit from India’s evolving financial landscape,” an official said.