National Strategy for Financial Education

Context

• The Reserve Bank of India (RBI) has released the National Strategy for Financial Education (NSFE): 2020-2025 document for creating a financially aware and empowered India.
• It is the second NSFE , the first one being released in 2013.

NSFE:

• This NSFE for the period 2020-2025 has been prepared by the National Centre for Financial Education (NCFE) in consultation with all the Financial Sector Regulators viz. RBI, Securities and Exchange Board of India (SEBI), Insurance Regulatory and Development Authority of India (IRDAI), Pension Fund Regulatory and Development Authority (PFRDA), etc. under the aegis of the Technical Group on Financial Inclusion and Financial Literacy (TGFIFL).
• NCFE is a Section 8 (Not for Profit) Company under the Companies Act, 2013 promoted by RBI, SEBI, IRDAI and PFRDA.
• It emphasizes a multi-stakeholder-led approach for empowering various sections of the population to develop adequate knowledge, skills, attitudes and behaviour which are needed to manage their money better and to plan for the future i.e. ensuring their financial well-being.

5C approach:

• It has recommended a ‘5 C’ approach for dissemination of financial education in the country:
  • Content: Financial Literacy content for various sections of population.
  • Capacity: Develop the capacity and ‘Code of Conduct’ for financial education providers.
  • Community: Evolve community led approaches for disseminating financial literacy in a sustainable manner.
  • Communication : Use technology, media and innovative ways of communication for dissemination of financial education messages.
  • Collaboration : Streamline efforts of other stakeholders for financial literacy.

Objectives:

• Inculcate financial literacy concepts among the various sections of the population through financial education to make it an important life skill.
• Encourage active savings behaviour.
• Encourage participation in financial markets to meet financial goals and objectives.
• Develop credit discipline and encourage availing credit from formal financial institutions as per requirement.
• Improve usage of digital financial services in a safe and secure manner.
• Manage risk at various life stages through relevant and suitable insurance cover.
• Plan for old age and retirement through coverage of suitable pension products.
• Knowledge about rights, duties and avenues for grievance redressal.
• Improve research and evaluation methods to assess progress in financial education.
• The Strategy also suggests adoption of a robust ‘Monitoring and Evaluation Framework to assess the progress made.

About TGFIFL:

• TGFIFL would be responsible for periodic monitoring and implementation of NSFE under the oversight of Financial Stability and Development Council (FSDC).
• TGFIL was set up in November 2011 by the FSDC.
• Recently, RBI also released the National Strategy for Financial Inclusion (NSFI) for the period 2019-2024.
• It is an ambitious strategy which aims to strengthen the ecosystem for various modes of digital financial services in all Tier-II to Tier VI centres to create the necessary infrastructure to move towards a less-cash society by March 2022.

Chora Museum

Context

• Recently, the Turkish President reconverted the Chora museum into a mosque.
• This is the second museum after Hagia Sophia to be converted into a mosque. Turkey has also found a new gas field in Black Sea.

Chora Museum:

• It was built initially as a church in 534 AD, during the early Byzantine period.
• In the 11th century, its internal walls, pillars and domes were covered with mosaics and frescoes showing scenes from biblical stories.
• After the conquest of Constantinople (capital city of the Roman Empire) by the Ottomans (1453), the church was seized and turned into a mosque in 1511.
• In 1945, it was converted into a museum.
• Chora is also known as Kariye in Turkish and the mediaeval Church of the Holy Saviour in Chora.

Reason:

• The reconversion can be seen as the Turkish President’s pro-Islamic policies, where he emphasises Turkey’s Ottoman history and domestic achievements over Western ideas and influences.
• By adopting pro-Islamic policies the Turkish President aims to become the leader of the Muslim world.
• The Turkish President has also taken anti-India positions, especially on Kashmir to bolster its own position in the Muslim world.
• It can also be seen as a counter to the USA’s recognition of Jerusalem as the capital of Israel.
• Jerusalem has a significant population of Arab Muslims who are becoming more and more hostile because of the USA's recent stand on the Israel-Palestine issue. This step of conversion of mosques would gain the support of Arab countries for Turkey.

Gas Field in the Black Sea:

• Recently, Turkey has found its biggest ever (a 320 billion cubic metre) natural gas field discovery in the Black Sea.
• The gas field will become functional in 2023.
• Turkey is determined to become a net energy exporter. The discovery has the potential to transform Turkey’s dependence on Russia, Iran and Azerbaijan for energy imports.
• Currently, Turkey is having a chronic current account deficit, any reduction in Turkey’s energy import bill would boost its finances. \
• It will also help the Lira (Currency of Turkey) to recover against the dollar.
• Currently, Turkey is also having strained relations with its neighbour Greece over the exploration of natural resources in Mediterranean sea.

Walter Scheidel’s Analysis

• Walter Scheidel, the Austrian economic historian, argues that throughout human history, there have been four types of catastrophic events that have led to greater economic equality: pandemic, war, revolution and state collapse. In Scheidel’s analysis, the decline in inequality is a result of excess mortality that raises the price of labour.