The Basel – II capital adequacy framework is being implemented in a phased manner, and the RBI has issued the final guidelines recently. A three-track approach has been adopted for the three types of banks, i.e., commercial banks, cooperative banks and regional rural banks, to facilitate smooth transition.
Clearly, to choose wisely from the wide variety of financial products and providers available, consumers must have at least basic financial knowledge. People who understand the financial aspects of purchasing a home or starting a business, or who appreciate the importance of saving for children’s education or retirement, will almost certainly be economically better off than those without that vital information.