Benefits of Financial Literacy

Effective creation of a Ability to make better

structured budget 6 financial decisions.
1
Increase in ethical
decision-making when
selecting insurance, 5 Effective management
of money and debt.
loans, investments, and
using a credit card.
2

Greter equipped to
Less financial stress reach financial goals &
and anxiety. 3 4 reduction of expenses
through better
regulation.
 Sources of Finance

Long Terms Sources of

Finance

External Sources

Medium Term Sources

of Finance

Internal Sources

Short Term Sources of

Finance

Borrowed Capital

Owned Capital
Sources of Finance
 Government Schemes
1. Adult Literacy Programme- The Adult Literacy Programme aims at equipping women with basic
literacy and numeracy skills required to adapt themselves to the fast-changing environment of our
modern world, at the same time furthering their self development through Adult Literacy Courses in
various outstation.

2. The Adult Literacy for Entrepreneurship Development (ALED) for Women was tailored to provide
relevant skills to women who wish to engage in income generating activities to raise their economic
situation.

3. Pradhan Mantri Jan Dhan Yojona- To ensure comprehensive financial inclusion of all the households
in the country by providing universal access to banking facilities with at least one basic bank account
to every household, financial literacy, access to credit, insurance and pension facility.

4. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

5. Pradhan Mantri Suraksha Bima Yojana (PMSBY)

6. Stand Up India Scheme

 PSL & Financial Inclusion

 The PSL norms are meant to promote financial inclusion by lending to vulnerable
segments. However, there is a genuine business case for allowing flexibility in sub-
targets for various categories of priority sector lending by giving more freedom to
the government.

 Priority Sector includes the following categories:

(i) Agriculture
(ii) Micro, Small and Medium Enterprises
(iii) Export Credit
(iv) Education
(v) Housing
(vi) Social Infrastructure
(vii) Renewable Energy
(viii) Others
 Banking- Paradigm Shifts
1.The Digital Shift- Every bank is trying to reduce spending on physical branches and going the
digital way. This shift in mentality has been accelerated by-
•Considerable number of people going digital and connecting to the Internet
•Card payments and digital wallets eliminating the need for physical cash and thus reducing
physical interactions

2. Flexibility & Adaptability is key to surviving the Digital Age- The banking behemoths must be
agile and quickly adapt to this changing technological landscape to out-maneuver their
competition.

3. Embrace Digital to see a great process efficiency and high RoI-  In the long term, the digitization
project will help you go ‘Branchless’ real fast and the cost savings in running thousands of bank
branches per month will be more than the investment in a robust digital technology.

4. Solving the Customer Acquisition Hurdle- Other than servicing your existing customers,
digitization is all about acquiring new customers through the digital channel.

5.The Cashless Push- In most countries, cash is now discouraged by the regulatory bodies.
Cashless transactions mean improved compliance, thus increased taxation.
 Banking- Paradigm Shifts

Challenges Initiatives

 Cybercrime  Dedicated Bank Mobile App

 Attaining Application Perfection  ATM

 Delivering Quality at Speed  Net banking 24*7

 Technology Upgrades  UPI Promotion

 Fear Factor  Cashless Economy

 Superheating with Innovation  Core Banking Solutions (CBS)