Financial Literacy Centres (FLCs) Model Scheme

Transcription

1 Financial Literacy Centres (FLCs) Model Scheme 1. Preamble Jharkhand Gramin Bank proposes to open 15 FLCs in its command area as per RBI guidelines to propagate financial literacy in its command area. The following places are identified for FLC at present: S. No. FLCC Centre Covering District Managed/ Supervised by 1. Ranchi Ranchi Regional Manager, Ranchi 2. Hazaribagh Hazaribagh Regional Manager, Hazaribagh 3. Giridih Giridih Regional Manager, Giridih 4. Chaibasa W. Singhbhum Regional Manager, Singhbhum 5. Bhilaipahari E. Singhbhum Regional Manager, Singhbhum 6. Gumla Gumla Regional Manager, Ranchi 7. Lohardaga Lohardaga Regional Manager, Ranchi 8. Seraikela Seraikela-Kharsawan Regional Manager, Singhbhum 9. Ramgarh Ramgarh Regional Manager, Hazaribagh 10. Khunti Khunti Regional Manager, Ranchi 11. Bokaro Bokaro Regional Manager, Giridih 12. Simdega Simdega Regional Manager, Ranchi 13. Koderma Koderma Regional Manager, Hazaribagh 14. Chatra Chatra Regional Manager, Hazaribagh 15. Dhanbad Dhanbad Regional Manager, Giridih 2. Objectives The broad objective of the FLCs will be to provide free financial literacy/education and credit counseling.the specific objective of the FLCs would be: A. Major Objectives: (i) (ii) (iii) (iv) (v) (vi) To provide financial counseling services in a non-intimidating environment using local languages. To advocate advantages of connection with the formal financial sector. To provide education on financial planning, responsible borrowing, proactive and early saving, debt counseling, micro pension and insurance. To educate about various financial products and services available from the formal financial sector. To formulate debt restructuring plans for borrowers in distress and recommend the same to formal financial institutions for consideration. To take up any other such activities that promotes financial literacy, awareness about banking services, financial planning and amelioration of debt related distress of an individual.

2 B. Broad guidelines for FLCs (i) (ii) (iii) (iv) (v) (vi) (vii) The financial literacy efforts of FLCs will encompass basic issues like the need for saving and starting early savings, making use of bank services, linking borrowing with repayment capacity, timely repayment, insurance and pension. The FLCs and rural branches of the bank will also conduct outdoor financial literacy camps with focus on financially excluded people. The basic focus of the FLC will be financial literacy. FLC staff will be provided training to work as effective trainers. There should be also a system of providing periodic knowledge up-gradation on various banking products and services. Bank will prepare material on above illustrative topics in vernacular languages using stores and pictorial representations to disseminate information on the four basic banking product i.e. (a) Pure savings products, ideally a recurring deposit scheme (b) Remittance products for electronic benefits transfer and other remittances, and (d) Entrepreneurial credit in the form of general-purpose Credit Card (GCC or Kisan Credit (KCC) and any new schemes introduced by the Bank from time to time. FLCs and rural branches of bank will maintain record in the form of a register containing details such as name, gender, age, profession, contact details, whether banked or un-banked details of services availed etc. The Head/controlling offices of the Banks would monitor the financial literacy efforts undertaken by their FLCs/Branches through periodic reporting and also by resorting to random on-site visits. 4. Organizational/Administrative Set-up FLCs will be fully managed by the Bank. The counseling centres will maintain arm's length relationship with the parent bank/ro/ho and preferably be located in the bank's premises as an independent unit. The independence of the counseling centres has to be ensured so that non-partisan and objective guidance is provided to the customers. The person who will manage the FLC will be termed as FLC-Coordinators. 5. Coverage While financial counseling services may be provided in rural, semi urban and urban areas, banks may adopt a segmented approach specific to different categories of borrowers, rather than broad-based generalized one. For instance, the centres in rural and semi urban areas could concentrate on financial literacy and counseling for farming communities and those engaged in allied activities. The centres in urban areas could focus on individuals with over dues in credit cards, personal loans, housing loans, etc. In the initial phase, considering network and reach, bank considers focusing on the rural areas. 6. Charges Counseling and debt management services may be provided free of charge to the customers so as to put no additional burden on them.

3 7. Infrastructure Proper infrastructure will be put in place by bank with adequate communication and networking facilities. (i) The FLCs will be provided with basic furniture like Chairs/Tables/Almirah etc. (ii) The FLCs will also be provided with one Computer/Laptop and Printer. (iii) A telephone connection with internet facilities will be provided. (iv) The bank may consider provision of certain other items like Public address System/Projector/Screen etc to show audio visual materials in the villages. 8. Qualification and Training of FLC-Coordinator To ensure that there is no conflict of interest; persons managing the FLC should not be staff of the bank. Individuals such as retired bank as Scale-I Officer or above with a minimum of 10 years experience as an Officer may be allowed to participate in the selection process, among others, as FLC-Coordinator. FLC-Coordinator should have sound knowledge of baking, law, finance, requisite communication and team building skills, etc. Proper training and skill up-gradation is essential for the FLC-Coordinator to keep themselves abreast of the latest developments in the banking industry. 9. Types of interface Counseling centres should be equipped to deal with requests received in person, by phone, s, post, etc. 10. Transparency/ Disclosure of Information To help the customers make informed decisions, bank may display in its websites necessary information regarding the details of the services offered by the FLCs. The address and activities of FLCs managed by the banks will also be updated on the websites of bank. 11. Publicity A great deal of emphasis needs to be given by all institutions to educate the public of the various schemes/facilities. All forms of publicity, viz. press conferences, workshops, publications, websites, road shows, mobile units, village fairs, etc. will be actively explored. As part of ongoing measures for publicity, bank may ensure that the list of counseling centres is appropriately publicized. 12. Financial Literacy Camps The FLC-Coordinator will arrange minimum 8 Financial Literacy Camps/Work Shops/Public meeting in each village of the district. Quiz competitions/awareness Camps will be arranged in Schools and Colleges of the rural area. The FLC-Coordinators will take the help of RO/Branch/USB/BCA in arranging such meetings in villages to popularise financial literacy. 13. Performance Review The performance of the FLCs will be reviewed at Head Office each month. A meeting for the purpose will be convened at Head Office in the first week of each month. The FLC- Coordinators will attend the meeting and submit details of Literacy activities in previous month and plan/programme for the current month. Resource persons from NABARD and RBI will be invited to impart training to the FLC-Coordinators in such meeting.

4 14. FLC-Coordinator (In-charge of FLC) As FLCs are expected to play a crucial role in assisting and guiding the customers. It is necessary that only well qualified/trained FLC-Coordinator are selected to man the centre on a full time basis. The Bank will consider appointing people with domain knowledge in banking for counseling. The councilors are to meet the FLC purpose as well as target in coordination with the HO/RO/Branches/USBs and existing BCAs of the Bank. They have to move out in the fields for face to face interaction with the public. They are also supposed to distribute publicity materials which will be provided by the bank from time to time. ELIGIBILITY CRITERIA FOR FLC-COORDINATOR: a) Should have retired on attaining superannuation/vrs from the Bank's service as Scale-I Officer or above with a minimum 10 Years experience as an officer. Preference will be given to those candidates who have worked in the state of Jharkhand. b) Age should be less than 65 years. c) Should have good health and willing to travel extensively within the command district. d) His integrity should not have been doubtful during his service in the Bank. SERVICE CONDITIONS: The FLC-Coordinator will be appointed by the Bank on a contract basis for a period of 1 year. The contract will be renewed by the Bank for a further period of one year on the basis of satisfactory performance, if so required. LEAVE FACILITY: The FLC-Coordinator is eligible for 15 days leave in a financial year. REMUNERATION: The proposed remuneration to the FLC-Coordinator would be as under:- a) Monthly Remuneration Rs. 12,000/- b) In addition to the above the actual travelling expense will be reimbursed as applicable. SELECTION PROCESS a) The selection of the FLC-Coordinator will be from the open market. Bank will give advertisement in newspapers and Bank's web site inviting applications from eligible candidates. The completed APPLICATION cum BIO-DATA form will be sent to Head Office, JGB by The candidates will be selected by interview by a Special Selection Committee as decided by the Bank. b) Eligibility norms/criteria mentioned above, may be relaxed at the discretion of the Bank depending upon the number of applications received. The management reserves the right to fill or not to fill the above advertised position without assigning any reason thereof.

5 REMOVAL OF THE FLC-COORDINATOR The FLC-Coordinator will be removed from his engagement if the performance of the FLC-Coordinator is not found to be satisfactory. However the FLC-Coordinator will be given one month time/notice to improve his performance failing which his service will be discontinued with immediate effect. (Chairman) Jharkhand Gramin Bank