1. Investor Awareness Programme.

5. VISA Global Financial Literacy Barometer(2012): Key Findings

6. Key Findings Continues………………… Indians are among the least financially literate people across the globe with youngsters and women struggling most with their finance knowledge due to lack of discussions within the families on money management issues, says a report by credit card firm Visa. The survey found that the average savings set aside by Indians for an emergency is 1.9 months – close to the survey average of 2 months. Chinese respondents were the best at saving, with an average of 3.9 months of expenses saved. Pakistani respondents had the least saved, with 0.8 months of expenses set aside.

7. When it comes to investing people are not very serious to save enough money and invest them properly so that it grows well. Only after years of working they come to realize that they have done a very bad job when it comes to investing their money. Lets Find out why should you feel you should use your money properly……here are some interesting facts that I should remind you when comes the matter of money…. (Source:http://www.jagoinvestor.com/2015/07/why-to-invest-money.html)

8. Self help……

9. The most basic reason to invest your money is to protect it from inflation. The reason is very simple that "money will decrease after many years in its purchasing power”. So you need to invest money properly so that you are able to at least buy the same quantity tomorrow or preferably a larger quantity. Eg: A Rs 100 note will not be able to buy the same thing in future, what it can buy today.

10. Financial Independence: Everyone wants to work but exactly not becoming money slaves If you invest your money properly you will never ever get free from your work So start creating a corpus of money you can rely upon. And the most important reason that you go for to job should be “because I love my job” and not “I need to pay my bills.

11. It is not about cutting down your desires and entertainment in life.Do all that along with that start creating that corpus, Keep a balance. To Fulfill your life's Goal: we know that our financial responsibilities will be coming up in distant future. They would need some BIG amount for eg: constructing a new house,Childrens education and many more lining up. So you need to make sure that you have accumulated that amount before hand, slowly and steadily.

12. X &Y Theory in Investment X refers to the number of years when you go to work and come back with money to meet your needs. it means the money that you normally used to meet all expenses coming in your way.This is called Active income and money will come only when you work. Y is the number of years which you will spend without earning. At that point of time also you have to meet your needs and but the problem is you will not be working either by choice or mostly you are unable to do so. So the point is Now where will the money come at that phase of life. So you mainly invest so that you create enough wealth which can last your Y years.

13. when we are in X yrs phase, we are not too much concerned about the Y yrs that is natural because the X yrs phase itself has many issues. Kids, House, job, health, parents, relationships and many issues which keeps us occupied enough and only when we approach the Y phase, we are bit scared and tensed, but then it gets too late if we are not aware about the “Savings & Investments.”

14. In a field one summer’s day a Grasshopper was hopping about, chirping and singing to its heart’s content. An Ant passed by, bearing along with great toil an ear of corn he was taking to the nest. “Why not come and chat with me,” said the Grasshopper, “instead of toiling and moiling in that way?” “I am helping to lay up food for the winter,” said the Ant, “and recommend you to do the same.” “Why bother about winter?” said the Grasshopper; we have got plenty of food at present.” But the Ant went on its way and continued its toil. When the winter came the Grasshopper found itself dying of hunger, while it saw the ants distributing, every day, corn and grain from the stores they had collected in the summer. Then the Grasshopper knew… It is best to prepare for the days of necessity.

15. Indian Story so far…………………. In India the term “Financial Inclusion” was first coined in 2004 by then RBI Governor YV Reddy. A committee on Financial Inclusion was appointed by the Government in 2008 under the chairmanship of Dr.C Ranjarajan. 1.About 50% of the Indian population is unbanked. 2.Less than 20 % of the population avail the loan facilities provided by banks. 3.63% of banks are in Semi-Urban Metropolitan areas across the country 4.Only 37% of banks are in Rural India.

16. Nearly 85 % of the population don’t have access to Insurance services in India. So far only 15% people have health insurance coverage in India.

17. Financial Literacy on Indian Perspective

18. In India the need for financial literacy is of greater importance considering the low level of literacy and the large section of population which remain unreached of formal financial set up especially rural areas. India being a country with most efficient markets in terms of technology, regulations and systems. It has one of the saving rates.inspite of this fact India is being the poorest country the real concern is about where the savings are invested. We need to convert a country of savers to a nation of investors. A financially literate population means a country that makes more efficient use of its financial resources.

19. Financial Literacy on Indian Perspective Financially educated consumers in turn can benefit the economy by encouraging genuine competitions,forcing the service providers(Banks, Insurance companies and off course the capital markets)to innovate and improve their level of efficiency. Financial education is especially important among low-income people, those who use financial services as well as the unbanked, because low- income people are more likely to take recourse to illegal money-lenders or fall victim to predatory lending practices by formal financial institutions. Government of India through its various agencies like RBI, SEBI, NABARD, State Bank of India etc have been trying to give financial literacy and financial education to its citizens in the last few years.

20. Target Segments for Financial Literacy: Financial Literacy target segments comprises of all users of Financial Services. It includes. 1.High Net worth Individuals. 2.Lower and Middle income groups 3.Financially Excluded Resources like Poor's 4. The Providers of Financial Services 5.Policy Makers and Regulators.

21. Financial Literacy -need of the hour: Financial Literacy refers to the ability to make informal judgments and to take effective decisions regarding the use and management of money. It enables a person to understand the importance of savings. It is all about making an ordinary individuals in to informed and questioning users of financial services. Thus it is not just about having awareness about markets and investments,but also about saving patterns,budgeting,Financial Planning, basis terms of banking and most importantly about being “FINANCIALLY SMART”.

22. Financial Literacy -need of the hour: It focuses on Personal financial education which in turn results in taking effective actions to improve overall well being and avoid distress in matters that are financial. Less Financial Literate are more likely to have problems with money management thus more exposed to debt, are less likely to save and can engage in high cost-credit, are less likely to plan for the future. It has been considered as the catalyst for promoting financial inclusion,financial development and ultimately financial stability. It focuses on Personal financial education which in turn results in taking effective actions to improve overall well being and avoid distress in matters that are financial. Less Financial Literate are more likely to have problems with money management thus more exposed to debt, are less likely to save and can engage in high cost-credit, are less likely to plan for the future. It has been considered as the catalyst for promoting financial inclusion,financial development and ultimately financial stability.

23. Three Pillars of Financial Stability FINANCIAL STABILITY

24. Financial Literacy & Financial Inclusion Financial Inclusion and Financial Literacy are twin pillars: - Financial Literacy stimulates the demand side–making people aware of what they want. Financial Inclusion acts from supply side providing the financial market/services what people demand.

25. Financial Literacy has three components:- 1. Personal financial management. 2. Information about various financial services, products to choose from. 3. Operational knowledge. Financial literacy should lead to Poverty Alleviation Community Economic Development Asset Building Consumer Education and Protection and Empowerment

26. Contents of Financial Literacy: 1. Transaction of money: This area includes the awareness of the different forms and purposes of money and handling simple monetary transactions such as everyday payments, spending, value for money, bank cards, cheques, bank accounts and currencies. 2. Risk and Return Analysis: Recognition of certain financial products (including insurance) and processes (such as saving) used to manage and offset various risks (depending on different needs and circumstances) Applying knowledge of the ways to manage risk including the benefits of diversification and the dangers of default on payment of bills and credit agreements

27. Knowing about and managing risks and rewards associated with life events(Theft, Loss of job, Health Problems), the economy and other external factors(fluctuations in interest rates and exchange rates; and other market changes.) Knowing about the risks and rewards associated with substitutes for financial products; in particular such as saving in cash, or buying property, livestock or gold; and borrowing from informal lenders 3. Financial Landscape: This content area covers knowing the rights and responsibilities of consumers in the financial marketplace and within the general financial environment. Knowledge of rights and responsibilities, and ability to apply it. Knowledge and understanding of the financial environment.

28. Knowledge and understanding of the impact of financial decisions including on others: understand that individuals have choices in spending and saving and each action can have consequences for the individual and for society; Recognise how personal financial habits, actions and decisions impact at individual, community, national and international level.

29. Financial Planning & Process

30. Financial Planning is a strategy used to achieve financial success based upon the development and implementation of financial goals.

31. Human Life Cycle – Disciplined Planning Income Age Birth & Education Earning Years Retirement Phase I Phase II Phase III 22 yrs 60 yrs Marriage Child birth Child’s Education Child’s Marriage Housing 22 yrs 38 yrs Over 25 - 30 yrs Having a Financial Goal is primary to starting a Investment Plan.

33. Financial Planning is … To develop well defined goals Divide the goals into short term and long term goals To look at the current income, expenses and savings To map out well defined strategies to turn the dreams into reality. Revise and monitor if the performance of your plans are not up to the mark of your expectations.(Rebalancing)

34. HOW TO DO A FINANCIAL PLAN 34

35. 1.Setting Financial Goals: A lot of planning should be needed when we analyse our Financial goals.  Visual Treat :when you write your financial goals it become easy for you to visualize it.It should be specific and realistic.  Identifying the time specific goals: o Short term goals which you want to achieve within 1 year.(Childrens short term educational needs) o Medium term goals which you want to achieve within 5 years o Long term goals which you want to achieve after 5 years.

36. 2.Analyzing your current Financial Position After setting your financial goals, its time to position yourself where are you in terms of Financial stability. We can make a clear picture of it by making two important statements  Cash Flow statements: Statement which represents your information about income and expenditure.  Net worth: Net worth is an overall statement of your assets and liabilities.  Update it regularly inorder to incorporate realistic goals. Remember these two statements do not replace each other but they are supportive each other.

38. 2.Analyzing your current Financial Position Budgeting: Budgeting helps you make a clear and perfect summary about expenses and spending habits.you can make out the areas where you spent more and effectively tune accordingly.

39. Role of Financial Planner……………… After analyzing your current financial position you will be able to identify where you are and where you want to reach in terms of financial freedom. Here you can opt the services of a financial planner who will help you to attain your financial goals by using various stratragies….  Who is a financial Planner? A Financial Planner is someone who uses the Financial Planning process to help you figure out how to meet your life goals. The Planner can take a 'big picture' view of your financial situation and make Financial Planning recommendations that are suitable for you. The Planner can look at all your needs including budgeting and saving, taxes, investments, insurance and retirement planning (Source:http://www.fpsbindia.org/scripts/LearnFinancialPlannin gBasics.aspx)

40. 3.Investment Planning & Risk Tolerance The two important variables that one need to understand while making investment decision is with regard to risk tolerance and time. Various investment options are available in the market by way of Guaranteed and Non-Guaranteed Return Investment. Guaranteed return Investment constitute: These schemes offer guaranteed return with very low risk and liquidity which varies from high to low. Fixed deposits, Post office schemes, Provident fund etc. Though GOI savings bonds and bank fixed deposits are the safest, the safest road isn't always the best one.

41. 3.Investment Planning & Risk Tolerance Non-Guaranteed Return Investment: These schemes offers high return with low risk in long term and high risk in short term. Equity, Mutual funds, Sectorial equity funds etc. The Second Factor – Time ….  How much time do you want to/are able to spend on investing?  How active do you want to be in the management of money?

42. 4.Asset Allocation In simple terms asset allocation means the distribution of investments in different classes of assets such as equity,bonds,gold,cash,real estates etc. There is no single asset which offers positive or high returns under all conditions.it depends upon the factors like.  Time Horizon : It means when you require money to meet your financial goals.it may be short, medium and long term horizons.  Risk Appetite: It means how much risk you can manage on every investment you make. Based on risk appetite investors are of three types Aggressive, conservative &Moderate.  Different life stages: Each and every life stages have different goals and liabilities, so investment plan varies in accordance with change in life stages.

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45. L IFE C YCLE INVESTMENT G UIDE 45

46. L IFE C YCLE INVESTMENT G UIDE 46

47. 5. Tax Planning: When you invest your money,you should also check whether you will get tax exceptions or tax benefits. It will not only increase your real returns but also reduces your tax liability.

48. 6.Retirement Planning: Retirement planning is the process of understanding the how much it COSTS to live at retirement,and coming up with a plan to distribute assets to meet any income shortfall. In the simplest sense, retirement planning is the planning one does to be prepared for life after paid work ends, not just financially but in all aspects of life. The non-financial aspects include such lifestyle choices as how to spend time in retirement, where to live, when to completely quit working, etc. A holistic approach to retirement planning considers all of these areas

49. 7.Rebalancing Rebalancing is the periodic adjustment of your portfolio to protect your current gain with effective risk management to achieve your financial goal. In simple terms it involves buying or selling investments to ensure that the original asset allocation of your portfolio remains steady. Rebalancing your portfolio on a regular basis maintains the desired returns in your investment strategy.

50. General consensus is that a well-diversified portfolio may need rebalancing every 12 months. There are a number of reasons why you might choose to rebalance your portfolio: Your risk tolerance or goals have changed You are considering selling and buying new investments To re-weight your asset allocation The relative weight of your portfolio in an asset class has changed according to its performance

51. 9. Monitor Regularly You may not need to rebalance your portfolio every year, but monitoring it will mean you are ready to make changes when needed. Regularly assessing what the market is doing and understanding how it is impacting your portfolio is a key factor in remaining on target to achieve your investment goals. ( Source:www.mywealth.commbank.com.au/learn/managing- investments/when-and-how-to-rebalance-my-portfolio)

52. Title Layout Subtitle Source: world-finance-conference.com/papers_wfc/138.pdf: Rangarajan Committee Report FINANCIAL INCLUSION AFFORDABILITY ACCESSIBILITY AVAILABILITY ADEQUACY AWARENESS WHAT IS FINANCIAL INCLUSION 52

53. What you think of the % Indian Population having bank account????????????????

54. Financial Inclusion during the years

55. CRISIL  An index for measuring financial inclusion in the country down to the district level.  It uses parameters that focus only on the number of people whose lives has been touched by various financial services rather than the amount deposited or loaned.  Higher the score higher the level of financial inclusion.

56. The three parameters for rating Financial Inclusion

57. INDIAN FACTS @ FINANCIAL INCLUSION

58. 1.Scoring considers 652 districts of total 676 districts in India. 2.Top 4 states : Kerala,Tamil nadu, Goa and karnataka 3.Bottom 3 states : Bihar, Manipur, Rajasthan,Nagaland 4.13 of Kerala’s 14 districts figure in the top 50 scoring district. 5.Pradhan Mantri Jan-Dhan Yojana& Differentiated anking licences increased the level of financial inclusion in the country.

59. Investment Awareness Initiatives by Regulatory bodies in India.  Reserve Bank of India (RBI)  Insurance Regulatory and Development Authority.(IRDA)  Securities and Exchange Board of India.(SEBI)

60. Measures by RBI to tackle UNBANKED INDIA…………………

61. The banking industry in India has shown tremendous growth over the last decade. However, this growth has not reached vast segments of the population, especially the under privileged sections of the society. It has already started tapping the unbanked parts through bank branches, banking correspondents and common service centres (CSCs). The government wants to boost its network of ATMs from 1.3 trillion at present to 1.63 trillion by the end of next financial year.

62. The government has begun mapping gram panchayats to provide banking services in remote parts of the country. Public Sector banks are providing poor and marginalized sections of the population with a choice of a ‘no frills account’ where the minimum balance is nil or very small, but with restrictions on number of withdrawals etc., to facilitate easy access to bank accounts.

63.  Conducting Town Hall events across the country, including in Tier II and smaller cities, bringing together commercial banks and other stakeholders  Setting up of a monetary museum by RBI to create awareness about money and banking among general public and spread knowledge about the history of money.  Use of mobile Financial Literacy vans by banks in the North Eastern States  Mass media campaign tie ups with educational institutes, financial awareness workshops/ help lines, books, pamphlets and publications on financial literacy by NGOs, financial market players, etc.

64. RBI’s initiatives on Financial Education  RBI website - A link on Financial Education in the RBI website, containing material in English, Hindi and 11 vernacular languages, which includes comic books on money and banking for children's.  Awareness - distributing pamphlets, comic books, enacting plays and skits, arranging stalls in local fairs, exhibitions, participation in information / literacy programmes organized by Press.  Financial Literacy Centres (FLCs) have been opened by various banks with focus on the spread of Financial Literacy To create awareness about financial products and provision of counseling facilities for customers of banks.

65. What is insurance and why we need insurance???? Most of the time it was misunderstood by Indians. Indians way of thinking about insurance is all about it as a Tax saving scheme or investment tool. Do we understand” Insurance as Insurance”?????????

66. In simple terms Insurance is a contract between the insured and the insurance company where by the insured financial risk is covered by the insurance company.Risk can be in the form of vechicle,property,etc. When you pass your financial risk to the insurance companies they charge you a nominal amount for taking the risk which is called Insurance premium.

67. For People think Insurance as an expense: The fact is that So any expense which gives a foothold and act as a security towards unforeseen circumstances, is worth spending. The moment someone wants to talk about life INSURANCE to you, what comes to your mind? 1. I really don’t need insurance now, I can plan for it during the last quarter of financial year or my limit of Rs. 1 lac is over. Now I don’t need insurance policy. 2. How should I ignore this Insurance Agent. He is going to chase me day and night. 3. How much commission will this agent give back to me??? 4. I am too young to have insurance………………….RIGHT????

68. 1.What would happen to my family in case I am not there? 2.Are my disposable assets more than my liabilities? 3. Will my family be able to maintain the standard of living which they are living right now? 4.Will all financial goals of my family will be met if I am no more ? Before opting any insurance one should ask himself some self help questions like: There are things which is beyond our control and we should be prepared to such unfavorable incidents and always have PLAN B with us. So what's is PLAN A??? 1.PLAN A will be like everything goes well and one can able to fulfill his/her goals in life out of his/her income and investments. 2.If something goes wrong which we cant foreseen today,Insurance take care if PLAN A

69. Facts and Figures…. Several factors are responsible for the low levels of insurance penetration in the country low consumer preference ‘low consumer preference. constrained distribution channels.

70. Financial Literacy Initiatives by IRDA

71. Awareness programmes have been conducted on television and radio and simple messages about the rights and duties of policyholders, channels available for dispute Redressal have been disseminated through television and radio as well as the print media through sustained campaigns in English, Hindi and 11 other Indian languages  Bima Bemisaal:it is the brand name for IRDA’S insurance awareness campaign with a tag line “"Promoting Insurance. Protecting Insured". It provides policy holders details regarding their rights and obligations and informs about complaints resolution methods. s a part of the Publicity Campaign under Bima Bemisaal, Consumer Affairs Department, IRDA, organised an Essay Competition for student..

72. Measures Continues……………………. Consumer Bodies : IRDA encourages consumer bodies to conduct seminars on insurance, thereby not only educating the consumer but also providing a platform for the consumer to interact with IRDA about insurance. Insurance Awareness Survey: Insurance Regulatory and Development Authority (IRDA) engaged the National Council of Applied Economic Research (NCAER) to carry out a pan- India survey to assess the levels of insurance awareness in the country. The survey was undertaken in 29 states/union territories Parameters of the survey: 1. Geographic Analysis 2. Purpose of insurance 3. Source of Information 4. Relevance of Insurance 5. Perceptions of Insurance 6. Decision to take insurance 7. Life and Non-life Insurance:

73. Measures Continues………………… IRDA has participated in the “JAGO GRAHAK JAGO” programme in educating consumers. IRDAI Documentary Film: In order to sensitize general public about IRDA, its role and initiatives in insurance sector regulation and development as well as policyholder protection and welfare, a documentary film has been prepared for extensive use which has been recently launched by IRDA. Insurance Research Grant Scheme: To encourage Research works on insurance and consumer protection with the objective of creating awareness about insurance and related activities in public as well as policy holders.

74. By way of Comic Strips IRDA has made their efforts to put the “Investment concept” in to the mind of people in simple and interesting way. It has also bought out publications of ‘Policyholder Handbooks’ infavour of awareness initiatives. Its tag line as follows. “Insurance Made Easy – Ranjan, the insurance consumer.”

75. Only 2% of Indians Invest in Equity The retail participation in equity markets is very low despite simpler processes at the exchanges, says Ashish Kumar Chauhan, Managing Director and CEO at Bombay Stock Exchange (BSE)

76. India has one of the highest savings rates in the world. But only a small percentage of household savings in India is invested in the stock market. Why?????????????

77.  The primary destinations of savings across household categories in India are banks, post offices, insurance products, and metals.  There is doubt about the safety of stock market investments.  Most retail investors find the stock market activities too complex and difficult to comprehend.  The continued volatility of the market is considered by many to be a great demotivating factor.

78.  Other reasons that are cited include procedural complexity, inability to monitor investments and absence of stable returns.  Some part of the retail investors believe that stock market investing can be made more attractive if the quality of investment advisory services is improved.  Only 55.6% of the investors are aware of investor education programmes sponsored by SEBI and Department of Company Affairs  The frequent occurrence of scams and frauds is also cited to be an important reason why ordinary household investors try to avoid the stock market route.

79. SEBI initiatives on Investor Awareness Programmes.

80. o SEBI has a dedicated website for investor education wherein study materials in English and vernacular language are available. o Listed below are the Financial educational programme for various segments of the society.

81. SEBI has empanelled Resource Persons throughout India. The Resource Persons are given training on various aspects of finance and equipped with the knowledge about the financial markets Under ‘Visit SEBI’ programme, School and college students are encouraged to visit SEBI and understand its functioning. SEBI Helpline has been set up in 14 languages wherein through a toll free number, investors across the country can access and seek information on various issues.

82. The financial market in India has witnessed lots of changes to make the market user friendly. These changes are framed inorder to attract participation of retail investors as well. To begin with, the revised Direct Taxes Code (DTC) Bill will play a vital role in encouraging retail investment in the stock market by allowing tax exemption on long-term capital gains on the sale of listed share. Enhancing use of stock exchange in the distribution of financial products will expand the reach and increase ease of buying and selling, encouraging higher retail participation. Initiatives by SEBI to Promote Retail Investor Participation.

83. The proposal to allow mobile trading is an equally important development. We have seen the success of online trading in India. The vast pool of mobile users in the country can be tapped by this stratragy. Such leveraging of technology will lead to widening of the investor base in a cost-efficient manner. Other regulatory moves, such as requirement of minimum 25% public shareholding in non-public sector units (PSU) listed companies. & The proposal to enhance the investment limit of retail investors from Rs 1 lakh to Rs 2 lakh for a public issue are all driven by the same objective

84. SEBI financial literacy awareness for your children's: National Institute of Securities Markets (NISM) is a public trust and educational institute, established by (SEBI), the regulator for securities market in India. The institute through its educational initiatives strives to increase financial literacy through a wide demographic and geographies across India. NISM also offers various continuing education and certification programs for professionals in the financial sector

85. Pocket Money Programme -Imparting financial education to school students The Pocket Money program is developed by NISM to impart basic financial knowledge to school students of class VIII and upwards. The program comprises of an eight session course covering various aspects of Money Management, Budgeting, Investments, Banking, etc. The program has been started with the objective of cultivating good money management habits among the children, so that when they become adult they practice sound personal finance management.

86. National Centre for Financial Education (NCFE) with joint initiative of few India’s financial services regulators has organized a test as National Financial Literacy Assessment Test (NCFE-NFLAT) to spread financial literacy in India. Students from classes VIII, IX and X enrolled in a school affiliated to any recognized educational boards or trusts in India are eligible to participate in this test.

87. Thus it is clear that financial literacy is a must for financial inclusion. Population should have proper knowledge, behaviors and attitude then only successful implementation of financial inclusion plan can be achieved. Financial service providers should focus on financial literacy, simple and flexible products and speedy transactions. Products should be there for all the class of customers. conclusion