Awareness on financial literacy essential: Banker

Dharwad: There is a pressing need to raise awareness about financial literacy among the public, and people must make effective use of the schemes provided by banks, said Jagadish Swamy, deputy general manager of Canara Bank.

Delivering a special lecture on ‘Financial inclusion and its impact on the Indian economy' organised jointly by the department of economics, Karnatak University, Canara Bank Chair, and the Centre for Multi-Disciplinary Research and Development (CMDR) at Karnatak University here, he emphasised that understanding financial literacy is crucial for societal development. "Between 2015 and 2020, there has been an increase in financial growth and GDP. The Pradhan Mantri Fasal Bima Yojana (crop insurance scheme) has proven highly beneficial to Indian farmers, especially those facing crop losses due to unpredictable weather conditions. Therefore, agricultural insurance schemes like these are of great importance," he said.

Swamy added that the public must be made aware of the special facilities offered by banks. "All nationalised banks are organising several programmes to promote financial literacy. People must also understand the value of money and should take advantage of life insurance schemes introduced by banks," he said and stressed the importance of citizens voluntarily engaging with banks and building direct financial relationships.

CMDR director Prof Basavaprabhu Jirli said a financially strong household contributes to a strong nation. "Even when many countries faced global financial crises, India remained relatively unaffected. Thanks to the financial discipline maintained by Indian households," he noted.

He further added that many prominent banks originated in Karnataka's coastal region, making the state a model in the banking sector. "States must design effective financial policies that prioritise farmers' interests, and farmers should be made aware of the importance of financial savings," he said.

He also pointed out that the Jan Dhan Yojana has been immensely beneficial to the people and emphasised the proper implementation of govt schemes for public welfare. "People should actively participate in financial inclusion," he added.

Presiding over the program, Prof B H Nagoor said that financial schemes play a key role in poverty alleviation. Life insurance schemes have been launched for the poor, and banks have rolled out schemes worth crores of rupees to support them. Currently, about 80% of the country's population is digitally literate, he noted.

Professors Manoj Dolli, Nagaraj Mugadur and A R Kulkarni among others were present.