Financial literacy is a matter of public interest and concern. Financial literacy is the knowledge and awareness needed to enhance the ability to use financial instruments efficiently and make appropriate decisions in this regard.

Financial literacy helps people to make a habit of saving money to meet their basic needs, to manage daily and emergency expenses, to make good use of credit, to build capital by collecting scattered capital, and to prepare a plan to deal with emergency situations without being burdened by debt in the future. Financial literacy is very effective for any person to manage the financial activities of daily life and gain knowledge about income, loans, investments, savings, interest rates, remittances, budget funds, contingency funds, financial fraud, financial dealings with financial service providers, consumer rights and responsibilities. turns out to be

Sometimes it is heard that some people are cheated, confused and even the banks and financial institutions keep them confused because they are not aware of the general banking procedures and rules. Increasing financial literacy helps to reduce and solve these types of problems. Financial literacy is not only focused on how to secure money and improve finances by using banking services. It also provides information about the work, duties, rights and deposit collection of banks and financial institutions, loan disbursement, the process and time of giving interest, the procedural methods to be adopted when taking loans, the benefits of using loans and the negative consequences that may arise from misuse of loans. 

The knowledge and skills of acquiring money or property only according to the law, budgeting frugally when spending money and spending it according to income, saving a part of your income for the future and taking loans for business ventures and the proper and productive use of foreign earnings i.e. remittances Provided through financial literacy. Also, financial literacy helps to take insurance and safeguards to mitigate the risks that may sometimes occur in the enterprise business. It also provides the minimum necessary knowledge on issues such as ill-gotten wealth causing hardship in the future. 

The importance of financial education is increasing nowadays due to the development of the financial market in the country, the arrival of new financial products, the financial market that is becoming more complex due to demographic, economic and policy changes. Along with various credit and savings tools available for customers, online banking, mobile banking, etc., which have increased on a large scale after the epidemic of Covid-19, have added new curiosity. Due to lack of access to formal financial mechanisms, large number of unbanked population, lack of targeted activities related to banking promotion, financial literacy is indispensable.

Financial literacy in Nepal seems to be very necessary to be provided to all kinds of people. There is a situation where even some high-ranking people with higher education have little knowledge of financial transactions. There are also examples of serious financial accidents due to lack of proper financial education and not being able to take proper decisions at the right time. Such events can also have a negative impact on our society. Therefore, it is necessary to provide financial education of different nature for different categories of people according to their age group, educational qualification, financial status etc.

It is especially important to teach children the habit of saving from an early age, to give them basic information about money, savings and other financial transactions including banking practices. Since most of the housewives manage the expenses of the house, it is more important to give them knowledge about how to manage expenses, how to save, invest, bank and other transactions. In addition, other financial information should be provided to household members dependent on foreign employment, including savings, interest rates of remittance accounts, use of remittance income in the productive sector. Along with this, it is necessary to inform the borrowers of banks and financial institutions and microfinance financial institutions about the availability of loans, about taking loans only after being aware of the conditions while taking loans, and also about interest rates and mortgages. 

Nepal Rastra Bank has been making various policy arrangements from time to time to promote financial literacy. In Nepal Rashtra Bank Act, 2058, section 4, the purpose of the bank is also mentioned in sub-section (1) (b) as 'increasing the public's confidence in the banking and financial system by increasing access to financial services and maintaining the stability of the banking and financial sector'. Nepal Rastra Bank's Fourth Strategic Plan (Year 2022-26) also has a provision to achieve the goal of financial inclusion through financial literacy and digital financial literacy. Nepal Rastra Bank has issued 'Financial Literacy Guidance, 2078' with the aim of implementing financial literacy programs through banks and financial institutions. In addition, the bank has made a plan to coordinate with the Curriculum Development Center under the Ministry of Education to include various topics related to financial education in the school curriculum. According to financial inclusion roadmap, strategic plan of Nepal Rastra Bank, financial and technical support of Alliance for Financial Inclusion (AFI) and monetary policy of different years, increasing financial literacy has been prioritized by issuing Financial Literacy Framework, 2022. 

The main objectives of the Financial Literacy Framework are to increase people's access to financial services and spread public awareness about the availability of various banking products and services, to motivate the general public to get used to the formal banking system and to help improve the financial condition of the general public. Similarly, helping consumers to understand their rights and responsibilities when using financial products and services, providing financial services at low cost to people who are financially deprived, spreading public awareness about digital financial services and the benefits and risks of these services, increasing public awareness in personal finance management, putting financial knowledge into practice. Its objective is to increase financial inclusion by making it easier to take off, strengthening the demand side of financial services. In this framework, provision has been made to provide financial education by dividing the target groups such as salaried employees, farmers, remittance recipients, women and students etc. In the current perspective, banks and financial institutions have been conducting financial literacy programs under the direction of the National Bank based on this framework.

Nepal Rastra Bank has made a separate regulatory arrangement regarding financial literacy and customer protection in the Integrated Directive No. 20 of 2079 issued to banks and financial institutions. In the integrated directive, licensed institutions must include financial literacy programs in their programs, make arrangements to inform the general public about the financial service facilities they provide, encourage advertisements and information that help the financial system by enhancing financial literacy, and financial literacy guidance issued by the National Bank. , 2078 has been mentioned as compulsory.

In this directive, banks and financial institutions are required to set aside 1 percent of their net profit as corporate social responsibility funds and 5 percent of that amount to target women and marginalized communities to conduct financial literacy programs that help in increasing financial awareness and training. Nepal Rashtra Bank program has been conducted with students, realizing that the financial literacy program will be effective if it is started from the school level. Financial support and resources are also being provided in the financial education program conducted elsewhere. 

Nepal Rastra Bank has been publishing and broadcasting various financial literacy messages and information. Thus, while conducting financial literacy program, especially savings, loans, digital financial services, finance, banks and financial institutions, Nepal Rastra Bank, customer protection, interest rates, cost of instruments, clean note policy, methods of income generation, remittances, capital market, budgeting, prudent financial Knowledge is imparted about decisions, financial service providers, risk management, grievance management etc.

With the aim of promoting financial literacy, the bank has published reference material on 'Nepal Rashtra Bank with Students', 'Financial Literacy: Reference Book' and 'Money Plant'. Also, a compilation of some financial awareness songs and jingles has been prepared and placed on the bank's website. Along with this, the bank has been emphasizing on promoting the financial literacy of the stakeholders through various study reports, circulars, news/bulletins etc. published regularly. Audio-visual materials for increasing financial awareness on seven different topics were created and broadcasted on national level television and official social networks of the bank, and those materials were also uploaded on the website.

Implementation of clean notes policy through audio-visual content, practice of reducing unnecessary expenses and saving, doing business in domestic currency within the country, paying loans on time, doing business using subsidized loans, sending remittances from abroad only through formal channels, using digital means in payment transactions, etc. The aim is to increase awareness on the subject. In addition to this, a comedy teleserial broadcast by Nepal Rastra Bank a few years ago on the subject of financial literacy has also been placed on the bank's website. Nepal Rastra Bank has been celebrating Global Money Week every year in the month of March in coordination with The Organization for Economic Cooperation and Development (OECD) to increase the financial awareness of the general public by promoting entrepreneurship development, importance of money, security and income generation. 

Nepal Rastra Bank is advancing towards expanding financial access through digitalization of the country's financial services and systems. With the development of technology not only in Nepal but also in the world, the speed of digital financial service delivery is rapidly increasing, so the bank has been working round the clock to promote digital financial service delivery policies, digital infrastructure and digital financial literacy in Nepal as well. Nepal Rastra Bank has also been providing instructions to banks and financial institutions on this matter from time to time.

Bank is organizing a digital financial literacy program targeting different groups of different sectors in the country. Through this program, the digital financial services being used in the country and illegal transactions such as cryptocurrencies, hyperfunds, pyramid schemes, network marketing etc. are also being spread awareness about the possible frauds in digital financial transactions and ways to avoid them. In order to increase financial inclusion by discouraging these types of illegal transactions, the National Bank has taken the necessary steps forward by arranging a separate division regarding the implementation of Central Bank Digital Currency, which is a topic of discussion in the world. 

Rashtra Bank's official X (Twitter) account, Facebook page, YouTube channel have been operating regularly to disseminate various information, information and financial awareness materials. Also, Rastra Bank is conducting various financial awareness activities with the financial and technical support of Alliance for Financial Inclusion (AFI) with the aim of increasing financial inclusion including financial literacy. In this regard, necessary coordination is being done with development partners including United Nations Capital Development Fund (UNCDF), International Finance Cooperation (IFC).

According to the findings of various study reports, financial literacy not only makes people financially literate, but also inculcates good financial behavior and behavior among them. It has become clear that it helps to develop and promote entrepreneurship. Financial literacy is more even more important to maintain financial economic development, poverty reduction, fiscal reduction, poverty and substituity, financial access, financial access, financial access, financial access, financial access and overall financial stability. & Nbsp;