March 22, 2010 2:25 PM

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Govt to bridge knowledge gap about financial services

Financial Literacy and Financial Inclusion will be given highest priority by the Government to bridge the knowledge gap about financial services in the Country. Giving this assurance, the Union Finance Minister Pranab Mukherjee observed that proper financial awareness will go a long way in empowering people at the grass root level about institutional credit and individual savings. He was speaking after inaugurating International workshop on Financial Literacy in Bangalore on Monday.Speaking on the occasion, RBI Governor D Subbarao informed that private sector commercial banks have agreed to come up with their own financial inclusion plan by this month end. The Deputy Governor of RBI Dr. K C Chakraborty and Deputy Secretary General Ambassador Richard A Boucher also spoke on the occasion.AIR Correspondent reports, the Finance Minister said that RBI will introduce various programmes to simply banking and reach it to the grass root level in the coming years. He strongly emphasized that Personal Financial Education through Credit Counseling Centres to be opened in Banks will help spur economic growth in the country.He disclosed that GDP growth rate hovering around 7.2% during the current year will likely reach 8 to 8.5% next year.RBI Governor Subbarao informed that banks will harness technology and innovate low cost business models to accomplish the government goal of reaching financial services to all villages with a population of over 2000 by March 2012.He also noted that all banks have been urged to include financial literacy and financial inclusion in the performance evaluation of their field staff.

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