High Financial Illiteracy - Moneylife

High Financial Illiteracy - Moneylife


An interesting analysis. GOI,
state governments, regulators in the financial sector, financial institutions
including banks have an important role to play in improving financial literacy.
The recent developments in the Indian financial sector have aggravated the
Technology and social
media are also doing havoc by attracting people who do not have the skills or
awareness about the ‘apps’ they are forced to use by aggressive marketing
techniques, to get into traps. Recently I came across a ‘website’ in the name
of RBI Governor Raghuram Rajan, with RBI emblem as profile picture. When
approached by RBI, the service provider reportedly said, unless something ‘harmful’
is posted, they cannot ‘block’ the page. I do not know, what is meant by ‘harmful’.
When technology was not so developed, I remember a TV Channel was sued for a
damage of some crores of rupees, by an individual for flashing his photograph
in place of the person to whom the channel was talking about!

In this case, RBI will
have to revisit the types of business each category of institutions it
regulates should be doing. Perhaps, banks have gone much ahead of traditional
banking business and are selling more non-bank products in their premises than
they were doing during the last decade. GOI should consider providing
legislative support by providing for dealing with scamsters fast and blocking
their bank accounts quickly when scams are reported.
M G Warrier


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