To boost financial literacy amongst the rural population, the Securities and Exchange Board of India (SEBI) in collaboration with panchayati raj ministry has started imparting training to sarpanches and officials at panchayat levels.
The training programme has now been initiated in six states – Maharashtra, Uttar Pradesh, Gujarat, Jharkhand, Jammu & Kashmir, and Tripura – and will be rolled out across the country.
The programme seeks to empower elected representatives of the three tier – Panchayati Raj Institutions (PRIs) – gram panchayats at the village level, panchayat samiti at the block level, and zilla parishad with essential financial knowledge, enabling them to educate and guide rural communities on responsible investments in equities and other legitimate investment avenues.
The training will cover financial planning, investment in equity, mutual funds budgeting, savings and safeguarding against fraudulent investment schemes.
“We have initiated training of elected leaders PRIs at the grassroots so that they can impart knowledge about the security market eco-system which includes pros and cons of investing in stock markets and mutual funds amongst the rural population,” an official with the ministry of panchayati raj told FE.
Sources said the training programme on financial literacy has already been held in Maharashtra and Tripura.
The training in collaboration with the stock market regulator is being imparted on practical financial skills including budgeting, financial planning, saving, insurance, and safe investment practices. In addition, the training module include the importance of saving and investing early, identifying regulated investment opportunities and safeguards against fraudulent financial schemes.
The programme aims to empower the country’s 0.25 million gram panchayats with financial literacy and make securities market participation more inclusive.
According to an official note, India’s securities market is expanding with dematerialized accounts (DMAT) and mutual funds accounts rising from 50 million during pre-Covid19 era to 130 million at present, yet this growth has been largely urban-centric.
“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,” an official said.
The National Institute of Securities Market is conducting a training programme for the 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.
National Centre for Financial Education, a non-profit company promoted by Reserve Bank of India (RBI), SEBI, Insurance Regulatory and Development Authority of India and Pension Fund Regulatory and Development Authority will provide support for the financial literacy programme.
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.