RBI/2010-11/456
RPCD.CO.FID. BC.No.58 /12.01.018/2010-11

March 31, 2011

The Chaiman & Managing Director/
Chief Executive Officer
All Scheduled Commercial Banks
(including Regional Rural Banks)

Dear Sir,

Establishment of Financial Literacy and Credit Counselling Centres.

We invite your attention to our circular RPCD.CO.MFFI.BC.NO.86/12.01.018/2008-09 dated February 4, 2009 communicating a ‘Model scheme’ with regard to establishment of Financial Literacy and Credit Counselling Centres (FLCCs). In the Model Scheme, it was envisaged that in order to have maximum coverage, FLCCs may need to be set up at all levels viz. block, district, town and city levels. Accordingly banks were expected to initiate setting up of FLCCs.

2. However, the number of FLCCs opened in the country has been low and the pace of setting up such centres is not up to the desired extent in some States. There is considerable merit in concerns of some key stakeholders with regard to the inadequate number of FLCCs operating in States.

3. As you are aware, FLCCs are integral to financial inclusion and therefore, it is imperative that more such centres are set up. You are, therefore advised to set up FLCCs as envisaged in the Model scheme already communicated to you.

Yours faithfully

(Dr.Deepali Pant Joshi)
Chief General Manager-in-Charge