After reviewing that the measures taken by commercial banks were unable to promote financial awareness amongst the general public, RBI has directed banks to open financial literacy and credit counselling centers (FLCCC) to give assistance to the prospective borrowers

Earlier the apex body had asked banks to set up centers to extend free credit counselling to the common man. However after a year's time RBI found that most banks were only promoting their individual products through these centers.

Moreover most of the centers were managed by the respective bank's employees who were handling the counselling part along with their regular assigned duties. This was the factor that these centers landed up selling products of the individual bank rather than acting as a counselling centre.

Keeping this view, RBI has now asked banks to set up societies for which it will be compulsory to appoint respected local citizens on the board of the trust. It has made clear that the currently serving bankers are not allowed to be a part of the board.

In a circular issued to the commercial banks RBI stated, "It is necessary that these centers are not perceived as recovery or marketing agents of the bank concerned. The independence of the counselling centers has to be ensured.