SEWA Co-op Bank to launch financial literacy centres

In a targeted effort aimed at spreading financial literacy among poor self-employed women, Ahmedabad-based Mahila SEWA (Self Employed Women's Association) Cooperative Bank will be launching financial literacy centres in its 10 branches on a pilot basis by the end of this month - seven in Ahmedabad and three in rural areas.

The cooperative bank has around 500,000 members. Jayshree Vyas, managing director of the bank, said it has been trying to spread financial literacy informally among its members.

"We will have designated centres where financial literacy programmes would be undertaken on a daily basis," she said. The focus "is to not only explain to them basic concepts like saving and the power of compounding, but there will also be handholding to help them navigate their big financial issues."  Guidance will be provided by the bank on matters such as planning for children's education.  

"We will talk to them and also show them short films that talk of the fungibility of money, how to come out of debt," Vyas said. This will be done by means of counselors.

Incidentally, last month, the Reserve Bank of India issued fresh guidelines on Financial Literacy and Credit Counselling Centres (FLCC). Among several other things, it is preparing literacy material and training modules. This is to provide awareness of basic banking.