<h2 style="text-align: left;">Basic Financial Education</h2> <p style="text-align: left;">The basic financial education consists of fundamental tenets of financial well-being. The concepts include: (a) importance and advantages of savings, (b) staying out of unproductive loans, (c) borrowing from formal financial sector as per need and capacity, (d) interest rate and the power of compounding, (e) time value of money, (f) inflation, (g) the need to insure, (h) the need to plan for old age income, (i) role of major financial sector related institutions such as Ministries, Financial Sector Regulators, banks, stock exchanges and insurance companies and (j) basic concept regarding relation between risks versus returns, (k) <a title="External website that opens in new window" href="https://en.vikaspedia.in/viewcontent/aspirational-districts/andhra-pradesh/vizianagaram/citizen-services/grievance-redressal?lgn=en" target="_blank" rel="noopener" data-page-id="24587">grievance redressal</a>.<img style="max-width: 100%; height: 303px; float: right;" src="https://static.vikaspedia.in/mediastorage/filestorage/20260428172451_BCO.e0a56f90-a599-41ef-b67a-1d27ea78a066.webp" alt="Uploaded Image" width="455"></p> <p style="text-align: left;">With the introduction of Government’s PMJDY scheme along with APY, PMJJBY & PMSBY besides MUDRA Yojana, many people have already been included. They also require financial education so that they can take full benefits from these <a title="External website that opens in new window" href="https://energy.vikaspedia.in/viewcontent/energy/policy-support/renewable-energy-1/schemes-renewable-energy-1-1?lgn=en" target="_blank" rel="noopener" data-page-id="2732">schemes</a>. These basic concepts need to be communicated to everyone by adopting different modes of delivery, suitable to the target audience. Special emphasis shall be laid on the financially excluded and those newly included but not operating their accounts. The basic financial education acts as a foundation for sector-specific and process education.</p> <h2 style="text-align: left;">Sector Specific Financial Education</h2> <p style="text-align: left;">Sector specific financial education is being imparted by the Financial Sector Regulators and focuses on “What” of the financial services and the contents cover awareness on ‘Do’s & Don’ts’, ‘Rights & Responsibilities’, ‘Safe usage of digital financial services’ and approaching ‘<a title="External website that opens in new window" href="https://en.vikaspedia.in/viewcontent/aspirational-districts/andhra-pradesh/ysr-district-kadapa/citizen-services/grievance-redressal?lgn=en" target="_blank" rel="noopener" data-page-id="24602">Grievance Redressal</a>’ Authority.</p> <p style="text-align: left;">Basic and Sector specific education will empower a person to be more prudent and make informed decisions while choosing appropriate financial products as per his/ her requirements from the available alternatives.</p> <h2 style="text-align: left;">Process Education</h2> <p style="text-align: left;">Process education is crucial to ensure that the knowledge translates into behavior. As an illustration, some of the aspects to be covered include:</p> <ul style="text-align: left;"> <li>How to use an ATM card?</li> <li>How to do an UPI Transaction?</li> <li>How to deposit money with a BC?</li> <li>How to fill a loan application form?</li> <li>How to compare and select an appropriate loan product?</li> <li>How to purchase an insurance cover?</li> <li>How to do various transactions in securities markets?</li> <li>How to allocate fund in a pension plan?</li> <li>How to lodge a complaint with the financial service provider?</li> <li>How to approach an Ombudsman/<a title="External website that opens in new window" href="https://en.vikaspedia.in/viewcontent/aspirational-districts/andhra-pradesh/vizianagaram/citizen-services/grievance-redressal?lgn=en" target="_blank" rel="noopener" data-page-id="24587">Grievance Redressal</a> Authority, etc</li> </ul> <p style="text-align: left;">These contents are to be developed in the form of easy to understand Audio/ Video,<br>Animated Posters to help the consumers understand the processes to be adopted for<br>various transactions. (For example, a short video on how to use the ATM displayed in<br>the ATM machine would be helpful for a customer to avail the service)</p>