Reserve Bank of Malawi (RBM) wants village banks to be incorporated in the formal financial sector to enable them achieve the purpose of their establishment.
Speaking at the official opening of the third National Financial Literacy Week in Mzuzu on Monday, RBM Governor Charles Chuka said currently, it is difficult for the central bank to support or receive complaints from village savings groups because they are not formally recognised.
“We recognise the presence of village banks as we frequently receive complaints related to their functioning. However, we cannot intervene because they are not legal financial institutions,” he said.
Chuka applauded the Ministry of Education, Science and Technology (MoEST) for embracing efforts to improve financial literacy from grass roots level.
He cited MoEST’s decision to include financial education in the school curriculum.
Deputy Minister of Education, Science and Technology Vincent Ghambi said his ministry will ensure that it produces financially-literate students to build a financially stable Malawi. n