What changed
In 2011, RBI observed that the number of FLCCs opened remained low and the pace was inadequate in some states. It reiterated the need to set up these centres at block, district, town, and city levels as per the earlier model scheme.
What it means for you
Banks were required to prioritize establishing FLCCs to meet financial inclusion goals. Non-compliance or slow progress may attract regulatory scrutiny. This directive reinforced that FLCCs are a key channel for credit counselling and literacy, especially in underserved areas.
What you must do
- Review current FLCC coverage and identify gaps at block, district, town, and city levels.
- Accelerate the setup of new FLCCs in states where progress has been slow.
- Ensure each FLCC operates as per the model scheme communicated in February 2009.
Who it affects
All Scheduled Commercial Banks, Regional Rural Banks, Bank branches in underserved states, Financial inclusion teams
What is the model scheme for FLCCs?
The model scheme, issued in February 2009, outlines the framework for setting up Financial Literacy and Credit Counselling Centres at block, district, town, and city levels to promote financial inclusion.
Why did RBI push for more FLCCs in 2011?
RBI noted that the number of FLCCs opened so far was low and the pace was not adequate in some states, which hampered financial inclusion efforts.
Which banks were covered by this directive?
All Scheduled Commercial Banks, including Regional Rural Banks, were required to comply with this directive.