on experiences in developing national strategy documents for financial education, has been planned. further, in view of the need for assessing existing financial literacy levels in order to identify priority areas while rolling out a national level strategy, the conference includes a session dedicated to use of surveys for evaluating financial literacy levels and ground level feedback from such measurement exercises. the conference also seeks to emphasize on certain focus groups such as the youth and women with separate panel discussions dedicated to these groups. all sessions have been structured to involve sharing of experience by implementation experts from across jurisdictions and would encourage free participation by all delegates, in order to optimize the learning experience. need for financial education / literacy 3. having given a brief outline of the conference let me briefly touch upon the theme of the conference. over the past few years, particularly in the aftermath of the global financial crisis, the importance of financial education and financial literacy has come to be widely acknowledged. this recognition has led countries to initiate programmes to disseminate financial literacy among its citizens. as the oecd ’ s definition of financial literacy indicates, it is “ a combination of financial awareness, knowledge, skills, attitude and behaviours necessary to make sound financial decisions and ultimately achieve individual financial bis central bankers ’ speeches wellbeing ”. i would argue that financial literacy is not only important for financial well - being of the masses ; it is also a sine qua non for the economic well - being of the nation as a whole. 4. financial illiteracy is not limited to the poor or to the less developed economies alone, it pervades all levels of society and economic strata. only the manifestation of financial illiteracy varies depending upon the stage of development of the economy, and within the same country, upon the economic profile of the individual. i am a firm believer that everyone associated with the financial system needs to be financially literate. this includes the users of financial services ; the providers of services ; and even the policy makers and the regulators. for countries which successfully roll out financial education programmes, the benefits are significant : for the individual … 5. at an individual level, financial literacy / education is important because it helps in building financial capability. it makes people better informed, educated and more confident, able to take greater control of their financial affairs and to fully harness the benefits of accessing the formal financial system. people who understand their financial circumstances are more likely to make sensible choices and ensure adequate provision for their future. they are more likely to

have an appropriate level of insurance and reach retirement age with comfortable pension plans. they won ’ t pay more interest than they need to when borrowing, or settle for less than they should when saving. people with basic financial awareness would understand risk return trade - off and take better investment decisions, thereby being less vulnerable to frauds and dubious schemes. financial education can help reduce levels of debt, poverty, repossessions, stress, illness and even crime. in sum, financial education improves the quality of people ’ s lives and financial affairs and provides them peace of mind, by instilling in them a sense of confidence and security about matters of money. for the macro economy …. 6. from a macro perspective also, financial literacy / education has important implications. financial literacy, together with financial inclusion and consumer protection form a triad which, collectively, has an important bearing on financial stability. the three legs of the triad have strong inter - linkages, with each element having a vital bearing on the others. the absence of any one would make it difficult to attain the remaining goals. financial literacy aids financial inclusion initiatives as it creates awareness about the benefits of connecting with the formal financial system and hence, creates demand for financial products. financial literacy supports consumer protection as it helps consumers better understand the features and risks inherent in financial products, thereby reducing the risk of mis - selling. it also generates awareness and willingness to approach the grievance redressal system available, in case of disputes. 7. at a macroeconomic level, the cost of financial illiteracy is significant and is manifested through scourges such as unemployment, poverty, high personal indebtedness and financial exploitation through mis - selling. it results in avoidable leakages and wastages, which any resource - scarce country can ill - afford. the savings habit, which can be inculcated through financial education, can help channelize household savings into productive activities, thereby supporting economic growth. the increased demand for financial services, created as an outcome of financial education efforts, can help bring depth and diversification to the financial markets. how are we doing in india? 8. in india, financial education has been identified as a policy priority and a massive effort involving the government, various financial sector regulators, financial institutions and civil society is underway. the financial stability and development council ( fsdc ), which is bis central bankers ’ speeches chaired by the union finance minister, is mandated, inter alia to focus on spread