RBI asks banks to assist clients in gaining financial literacy

Mumbai, August 2: Bank branches need to have a more proactive role in the affairs of their micro and small enterprise (MSE) clients by providing them with financial literacy and consultancy support, according to the Reserve Bank of India. 

Towards this end, banks could either separately set up special cells at their branches, or vertically integrate this function in the Financial Literacy Centres (FLCs) set up by them, as per their comparative advantage. The RBI said banks should submit an Action Taken report by August 24 on financial literacy and consultancy support.