Financial inclusion and literacy twin pillars: RBI Governor

Reserve Bank of India Governor Dr D Subbarao stressed the need for the 'financial literacy' in the context of the present fiscal scenario, stating that it had to be an integral part of financial inclusion and consumer protection. ''In RBI, we treat financial inclusion and financial literacy as Twin Pillars,'' Mr Subbarao said while addressing the 24th Foundation Day and Convocation of Sambalpur University. He said many people think RBI to be a mysterious institution. In a bid to clarify such monolith, the RBI Governor explained the activities of the institution and the range and diversities of the apex bank. Dr Subbarao said the RBI was the regulator and supervisor of Banks, non-banking financial companies and significant parts of the financial markets. In a market system, regulation is required in order to protect the interests of the stakeholders and preserve the financial stability, he added. Orissa Governor M C Bhandare said the imperatives of neo-liberal economy had influenced the priorities and perspectives of higher education in India in ''startling'' new ways. He appealed to the staff and students of this university to face the challenges that are likely to come in the future. The Governor said Orissa, well endowed with mineral resources, had not achieved the desired progress and development. ''Poverty and illiteracy are the biggest hurdles and are two ugly spots which need to be removed,'' he said and urged the graduating students to play a major role.