A personal finance survey has revealed some eye-opening facts about the dynamics of financial behavior in India. India’s Personal Finance Pulse which mapped the income, savings, investments and spending of Indian households, claimed that around 69% of households in India struggle with financial insecurities and vulnerability.
The survey also unveiled the Money9 Financial Security Index which is India’s first state ranking of civil financial security and also provides insight into how India earns, spends and saves.
“The survey found that the average income of an Indian family of 4.2 persons is 23,000 per month. Income of more than 46 percent of Indian households. is less than 15,000 per month i.e. aspirant or belong to the lowest income group. According to the survey conducted by Money9.
Around 70% of Indian banks make some form of financial savings in bank deposits, insurance, post office savings and gold, with the highest penetration of bank and post office deposits being over 64%.
“The incidence of savings is less prevalent among the aspirational segment. Also, two-fifths of Indian households in the same segment are unable to make any financial savings. There is a clear need to address this segment by policy makers/ market players ,” it said.
On investments by Indian households, the survey states that 22% of Indian households have invested in stocks, mutual funds, ULIPs and physical assets, with real estate (18%) having the highest exposure. According to the survey, only 6% of Indian households invest in mutual funds, 3% in the stock market and 3% in unit linked insurance plans or ULIPs.
Bank loans to Indian households are also very low, with only 11% of households having active loan accounts with banks. Personal loans have the highest percentage followed by home loans among retail loans.
“India’s Money9 Financial Security Index which ranks states in safety across multiple parameters. This index finds 42 percent… Indian households are ‘insecure’ (this includes households with monthly income) 15,000 or more). The level of financial insecurity rises to 69 percent, covering the lowest income group i.e. households with monthly income 15,000,” the statement said.
The survey had a sample size of 31,510 households in 1,154 urban wards and villages across 100 districts and 20 states and was conducted between May and September 2022.
With inputs from PTI.
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