Note4Students
From UPSC perspective, the following things are important :
Prelims level: NABARD, NAFIS Survey
Why in the News?
The National Bank for Agriculture and Rural Development (NABARD) has published findings from its second All India Rural Financial Inclusion Survey (NAFIS) 2021-22.
About the NAFIS 2021-22
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Key Highlights from NAFIS 2021-22:
| Details | |
| 1. Increase in Average Monthly Income | • Average monthly income increased by 57.6% from Rs. 8,059 in 2016-17 to Rs. 12,698 in 2021-22, indicating a nominal CAGR of 9.5%. • Agricultural households earned slightly more, with an average income of Rs. 13,661, compared to Rs. 11,438 for non-agricultural households. • Salaried employment was the largest income source for all households, accounting for approximately 37% of total income. • For agricultural households, cultivation was the main income source, contributing about one-third of their monthly earnings. • For non-agricultural households, government/private services contributed 57% of the total household income. |
| 2. Rise in Average Monthly Expenditure | • Average monthly expenditure increased from Rs. 6,646 in 2016-17 to Rs. 11,262 in 2021-22. • Agricultural households had higher expenditure at Rs. 11,710, compared to Rs. 10,675 for non-agricultural households. • In states like Goa and Jammu & Kashmir, monthly household expenditure exceeded Rs. 17,000. • Overall, agricultural households demonstrated both higher income and expenditure levels than non-agricultural households. |
| 3. Increase in Financial Savings | • Annual average financial savings rose to Rs. 13,209 in 2021-22 from Rs. 9,104 in 2016-17. • 66% of households reported saving money in 2021-22, up from 50.6% in 2016-17. • 71% of agricultural households reported savings, compared to 58% of non-agricultural households. • States with 70% or more households saving money include Uttarakhand (93%), Uttar Pradesh (84%), and Jharkhand (83%). • States with less than half of households reporting savings are Goa (29%), Kerala (35%), Mizoram (35%), Gujarat (37%), Maharashtra (40%), and Tripura (46%). |
| 4. Kisan Credit Card (KCC) Usage | • 44% of agricultural households possessed a valid Kisan Credit Card (KCC). • Among those with land holdings greater than 0.4 hectares or who had taken agricultural loans from banks in the past year, 77% had a valid KCC. |
| 5. Insurance Coverage | • Households with at least one member covered by any form of insurance increased from 25.5% in 2016-17 to 80.3% in 2021-22. • 80.3% means that four out of every five households had at least one insured member. • Agricultural households had higher insurance coverage than non-agricultural households by about 13 percentage points. • Vehicle insurance was the most prevalent, with 55% of households covered. • Life insurance coverage extended to 24% of households, with agricultural households showing slightly higher penetration (26%) compared to non-agricultural ones (20%). |
| 6. Pension Coverage | • Households with at least one member receiving any form of pension increased from 18.9% in 2016-17 to 23.5% in 2021-22. • Overall, 54% of households with at least one member over 60 years old reported receiving a pension. • Pensions included old age, family, retirement, or disability pensions, highlighting their importance in supporting elderly members of society. |
| 7. Financial Literacy | • Respondents demonstrating good financial literacy increased from 33.9% in 2016-17 to 51.3% in 2021-22, a rise of 17% points. • Individuals exhibiting sound financial behavior increased from 56.4% to 72.8% during the same period. • When assessed on financial knowledge, 58% of rural respondents and 66% of semi-urban respondents answered all questions correctly. |
Key aspects that contribute to Rural Empowerment
- The survey shows significant progress in rural financial inclusion since the first survey in 2016-17.
- Rural households have seen improvements in income, savings, insurance coverage, and financial literacy.
- Government schemes like Pradhan Mantri Kisan Samman Nidhi, MGNREGS, and PMAY-G have contributed to the improvement in the lives of rural people.
PYQ:[2015] Pradhan Mantri Jan-Dhan Yojana was launched by the Prime Minister of India Narendra Modi on 28 August 2014. What is the main objective of the scheme? (a) To provide housing loan to poor people at cheaper interest rates (b) To promote women’s Self Help Groups in backward areas (c) To promote financial inclusion in the country (d) To provide financial help to marginalised communities |
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