India - OECD - World Bank

Conference on
Financial Education
New Delhi
March 4, 2013

Inaugural Remarks by
Dr. Duvvuri Subbarao
Governor
Reserve Bank of India
1
• Why is Reserve Bank of India
(RBI) in the forefront of the
campaign on Financial Literacy?

• Because RBI has a

development mandate

2
• Why is Reserve Bank of India
(RBI) in the forefront of the
campaign on Financial Literacy?

• Because, after the crisis, central

banks have recognized the link
between financial stability and
financial literacy.
3
 Inaugural Remarks

• The big picture

• RBI’s accomplishments to date and

challenges ahead

• Introspective questions that we must ask

oursleves

4
 The Big Picture

Financial Inclusion and

Financial Literacy are
integral to each other

5
 The Big Picture
• Why are financial inclusion and
financial literacy important?

• Because they are integral to

‘attacking poverty’.

6
Financial Inclusion in India

Win-win for all stakeholders

7
Financial Inclusion

The big picture in India

8
Financial Inclusion
and
Financial Literacy

What has RBI done?

9
 Financial Inclusion
and
Financial Literacy

RBI Strategy
• Bank led model
• More by moral suasion than regulation
• Let a thousand flowers bloom

10
Financial Inclusion in India

Many accomplishments, but

also several challenges

11
 Financial Inclusion
and
Financial Literacy

Introspective but important

questions that we must
ask ourselves?

12
Financial Inclusion
and
Financial Literacy

Portfolios of the Poor

13
Financial Inclusion
and
Financial Literacy

Poor Economics

14
Financial Inclusion
and
Financial Literacy

Fortune at the bottom

of the pyramid

15
 Financial Inclusion
and
Financial Literacy

• Challenge only in developing

countries?
• No. surprisingly, it is a challenge
in rich countries as well.
16
 Summary and Conclusion
• Problems of access and awareness
• Challenge in rich and poor countries
• Perish stereotype views
• Good policies and effective
implementation can make a big
difference
• Let a thousand flowers bloom. We can
learn from collective experience.

17