The role of the Reserve Bank in the area of fi nancial inclusion involves developing policies towards ensuring the availability of banking services at affordable costs for those vulnerable sections of society who have hitherto been left outside the scope of formal fi nancial services due to factors such as illiteracy, lack of banking infrastructure, diffi culty in physical access to such services in far fl ung areas and perceived lack of creditworthiness. Recognising that fi nancial illiteracy is a major impediment to the diffusion of fi nancial inclusion, the Reserve Bank focused on the dissemination of simple messages introducing people to the benefi ts of active savings, prudent borrowing practices, fi nancial planning as well as unravelling the world of digital transactions for them. Consumer protection also forms an important aspect of these messages, which are also issued in vernacular language. During 201617, the Reserve Bank aimed to provide a fi llip to fi nancial literacy through a digital focus in literacy camps, experimenting with ground level camps, capacity building of fi nancial literacy counsellors and observation of a fi nancial literacy week. In order to propel the economy onto a medium-term sustainable inclusion path, greater emphasis was placed on strengthening the business correspondent (BC) model through the creation
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of a BC registry and introduction of a framework for BC certifi cation. In this context, the Financial Inclusion and Development Department of the Reserve Bank formulates policies for promoting fi nancial inclusion.