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All India Rural Financial Inclusion Survey

NAFIS 2021-22

The actual survey is here - https://www.nabard.org/auth/writereaddata/tender/pub_0910240156351156.pdf my saved version - https://drive.google.com/file/d/16UTTBCHdp1aFFZfp0n8i7dADMKiM7xkQ/view?usp=sharing

The National Bank for Agriculture and Rural Development (NABARD) recently released the results of its second All India Rural Financial Inclusion Survey (NAFIS) for 2021-22. Here are the key findings and highlights from this important survey on rural financial inclusion in India:

Survey Overview

  • NAFIS 2021-22 covered 1 lakh rural households across 28 states and the Union Territories of Jammu & Kashmir and Ladakh[1][2].
  • It included rural and semi-rural areas, covering tier 3 towns to tier 6 towns with populations under 50,000[2].
  • The survey provides insights on rural livelihoods and financial inclusion, covering aspects like income, expenditure, savings, credit, insurance, pensions, and financial literacy[1][2].

Key Findings

Income and Expenditure

  • Average monthly household income increased by 57.6% from Rs 8,059 in 2016-17 to Rs 12,698 in 2021-22, indicating a 9.5% CAGR[1][4].
  • Agricultural households earned slightly more (Rs 13,661) compared to non-agricultural households (Rs 11,438)[2].
  • Average monthly expenditure rose from Rs 6,646 in 2016-17 to Rs 11,262 in 2021-22[1][4].

Savings and Financial Inclusion

  • 66% of households reported saving money in 2021-22, up from 50.6% in 2016-17[1][4].
  • Annual average financial savings increased from Rs 9,104 to Rs 13,209[1].
  • 71% of agricultural households reported savings, compared to 58% of non-agricultural households[2].

Credit and Insurance

  • 75.5% of agricultural households borrowed from institutional sources in 2021-22, up from 60.5% in 2016-17[4].
  • 44% of agricultural households possessed a valid Kisan Credit Card (KCC)[2].
  • Insurance coverage expanded dramatically, with 80.3% of households having at least one insured member in 2021-22, compared to just 25.5% in 2016-17[4].

Financial Literacy and Behavior

  • The percentage of respondents demonstrating good financial literacy increased from 33.9% to 51.3%[1][2].
  • Sound financial behavior improved from 56.4% to 72.8% of respondents[1].

Implications

The NAFIS 2021-22 results highlight significant progress in rural financial inclusion since 2016-17. The improvements in income, savings, insurance coverage, and financial literacy indicate growing economic empowerment in rural India. Government welfare schemes have likely contributed to these positive trends. However, the survey also reveals ongoing challenges, such as declining average landholding sizes, which may require further policy attention.

Citations: [1] https://affairscloud.com/nabard-released-2nd-all-india-rural-financial-inclusion-survey-nafis-for-2021-22/ [2] https://www.iasgyan.in/daily-current-affairs/nabard-all-india-rural-financial-inclusion-surveynafis-for-2021-22 [3] https://pib.gov.in/PressNoteDetails.aspx?ModuleId=3&NoteId=153270 [4] https://economictimes.indiatimes.com/news/india/monthly-income-of-rural-households-increased-by-57-6-in-5-yrs-nabard-survey/articleshow/114109272.cms [5] https://visionias.in/current-affairs/news-today/2024-10-11/economics-(macroeconomics)/nabard-released-second-all-india-rural-financial-inclusion-survey-nafis-2021-22 [6] https://www.civilsdaily.com/news/nabard-survey-on-rural-financial-inclusion/

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