Tag: Financial Lives of Poor Households

Agriculture incomes in India are volatile because of a number of unforeseen factors, such as weather, disease/pest infestations and/or market conditions.

My colleague and I were once asked at a conference, “So, how exactly does a bank account reduce poverty?” Great question.

Gopal G., a native of West Bengal, moved to Delhi 14 years ago to find a job to support his 11-member family. In Delhi, he works with a goldsmith, earning Rs 3,600 a month, much of which he sends back home.

A defining characteristic of the finances of low-income households is the irregularity and seasonality of cash-flows, and the generally small surplus.

Increasing urbanization and massive demographic pressures that India is witnessing has brought housing and infrastructure to centre stage.

It is now well-accepted that the power of financial services to the customer, particularly low-income households, is realised only through the availability of a broad range of services, and not just through small loans or opening bank accounts.

What a great financial inclusion journey India is on. Banks, government, NGOs, civil soviety and private sector businesses are jumping onboard as the train accelerates.

What does it mean to be a farmer in Kurnool (a district in Andhra Pradesh)? One part of the district grows commercial crops such as sunflower and tobacco while another supports nothing but paddy (the Telugu-Ganga Canal influences the soil in way that only paddy can be grown here).

Finance Matters – A fortnightly column by IFMR Finance Foundation in The Hindu Business Line will explore ways in which the power of finance can be unlocked for improving the wellbeing of millions of households.

Did you know that only half the adult population in the world has access to a bank account? More than 3 billion people don’t have access to savings accounts, and they are predominantly the world’s poorest people who live on less than US$2 per day.