Household Finance

In this blog, we will highlight some interesting facts about agricultural households from the survey through a set of questions that can help contextualise the financial lives of farmers and their families.

This blog presents key insights from the second round of the survey report, NAFIS 2021-22, and finds that the rural households’ investment portfolio continues to be dominated by physical assets, which is in contrast with the predominance of formal debt on the liabilities side of the household balance sheets.

This article explores the significance of financial inclusion in determining the financial well-being of Indian households. It discusses a measurement framework developed by Dvara Research and xKDR Forum, focusing on access to and usage of financial products, and financial well-being. Our results from collaborative research with financial service providers shed light on the framework's applicability and its relationship with improved financial outcomes.

Governments and lenders provide loan moratoria to help struggling borrowers, particularly during an economic crisis. While it can provide relief to borrowers, such a policy also has a possibility of inducing moral hazard among the beneficiaries.

The study explores the financial lives of platform workers and finding answers to the following questions: do platform workers face volatility in their income and expenses, and how much do their earnings and expenditures vary on a day-to-day basis; how long do they work to earn as much as they would like to; whether and where they save and borrow; what strategies do they adopt to manage their money to meet their day-to-day expenses, raise lump-sums, deal with and recover from shocks; what social protection benefits do they have access to; what their financial goals are; and what barriers exist, if at all, in their pursuit of those goals.

Insurance companies should align their sales practices to generate the best outcomes for low income households by ensuring easy access to a variety of products with disclosures that provide accurate information.

There is a need for updated dataset on households' consumption patterns, increased frequency of surveys on households’ balance sheet, and to collect data on financial well-being.

Despite significant policy support for financial inclusion, there is little evidence about what has been achieved by way of knowing which households and individuals are financially included, or what is the impact of such inclusion on these persons.

Low-income households seek loans often, but credit is suitable if it helps sustain or improve financial well-being. This is what must be ensured by lenders, regulators & policymakers.

The Inclusive Finance India Report is a comprehensive and well-researched account on cumulative progress made in India toward reaching the ambitious goal of universal financial inclusion.