69pc Indian households struggle with financial insecurity: Survey | Biden News

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Despite robust growth in financial inclusion and the burgeoning financial services industry, nearly 69 percent of Indian households struggle with financial insecurity and vulnerability, according to a personal finance survey conducted by Money9.

India Personal Finance Pulse maps the income, savings, investments and expenses of Indian households, said a statement issued by Money9, promoted by TV9 Network.

Providing insights into how India earns, spends and saves, the survey also revealed the country’s first-ever national ranking for citizen financial security – the Money9 Financial Security Index.

”The survey finds that the average income of an Indian family of 4.2 people is 23,000 rupees per month. More than 46 percent of Indian families have an income of less than 15,000 rupees per month, that is, it belongs to the aspirational or lowest income category,” it said. “Only 3 percent of Indian households have a luxurious standard of living and most of they belong to higher income cohorts (Upper-Middle and Rich).”Also, the survey found that 70 percent of Indian households have some financial savings in the form of bank deposits, insurance, post office savings, and gold. high penetration is for bank and postal savings, followed by life insurance and gold.

More than 64 percent of savings are parked in bank accounts, while only 19 percent of households have insurance.

”The incidence of saving is less prevalent among the aspirant class. Also, two-fifths of the Indian households in the same class are unable to make any financial savings. There is a clear need to address this segment of the politicians / market players,” it said.

The survey found that 22 percent of Indian households invested in stocks, mutual funds, ULIPs and physical assets. However, investment in property/land is high (18 percent), followed by mutual funds (6 percent), stock market (3 percent), and Unit Linked Insurance Plans or ULIPs (3 percent).

Only 11 percent of Indian households have active loans with banks or NBFCs. Among all retail loans, the consumption of personal loans is highest, followed by home loans.

”India’s Money9 Financial Security Index which ranks states in security according to several parameters. This index finds that 42 percent… of the Indian households are “uninsured” (this includes households having monthly earnings of 15,000 rupees or more). The level of financial insecurity further increases to 69 percent after including the lowest income cohort, ie households having monthly income up to Rs 15,000,” the statement said.

The Money9 Personal Finance Survey, conducted in collaboration with Research Triangle Institute (RTI) Global India, is a nationally representative household survey with a sample size of 31,510 households across 1,154 urban wards and villages in 100 districts and 20 states or groups of states.

The survey was conducted between May and September 2022.

Commenting on the importance of the survey, Barun Das, MD and CEO, TV9 Network, said, “The Survey is poised to fill a critical gap in quality financial data as it exclusively focuses on the demand side of the personal financial needs of Indian households. All it is about creating the demand side so that 130 crore citizens of this country can take advantage of the existing well-established financial services ecosystem.” Anshuman Tiwari, Editor, Money9, said, ”This survey is expected to be unique and very high. valuable data on financial security that can be used by policymakers to frame future policies for citizens. It is of immense importance as it offers unrivaled access to all India data that would help bridge the demand deficit to enable all-important financial security.” PTI ANZ ABM ABM.

(This story has not been edited by Devdiscourse staff and is automatically generated from a syndicated feed.)

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