HomePersonal Finance NewsAround 90% adults have accounts in financial institutions: NSSO survey

Around 90% adults have accounts in financial institutions: NSSO survey

The NSSO survey, which was initially to be conducted in the January to December 2020 period, was continued till August 15, 2021, due to the COVID-19 pandemic, and applies to individuals of 18 years of age and above.

By Anshul  March 27, 2023, 5:33:01 PM IST (Published)

A survey by NSSO has found that around 89.3 percent of people in rural areas and approximately 89.6 percent of urbanites have accounts individually or jointly in a bank/financial institution/mobile money service provider. The 78th round of the Multiple Indicator Survey was carried out by National Sample Survey Organisation's (NSSO). This relates to people of 18 years of age and above.

Gender wise, 92.4 percent of men and 86.3 percent of women have accounts in a bank, financial institution or a mobile money service provider. In the age group of 15 years and above, 89.8 percent of male and 84.5 percent of female have accounts.

The numbers show that there is a parity in rural and urban areas on account holdings.

(Source: National Sample Survey Organisation)

In terms of indebtedness, the number of borrowers per one lakh people stood at 21,680 in male category, and just 9,772 among females. The breakup in the urban areas is 21,051 males, and 8,427 for females. In rural areas, the numbers stood at 21,967 in the male category, whereas female borrowers came in at 10,369. This relates to people belonging to age group of 18 and above.

ALSO READ | NSSO survey shows water scarcity still among top reasons for migration in India

In this survey, a person holding a mobile money account means that the person is using GSM Association (GSMA) mobile money for the unbanked
(MMU) services in the past 12 months to pay bills or to send or receive money. This service may also have been used to receive wages, government transfers, payment for agricultural products through the issuance of mobile phones in the past 12 months.

On households, the survey said the information on usual monthly consumer expenditure was collected to classify the households in different usual monthly per capita consumer expenditure (UMPCE) classes.

Since this information was collected only through a few questions, it cannot be used to estimate the household consumer expenditure, which is generally estimated based on detailed household consumer expenditure survey of NSSO.

ALSO READ | NSSO Highlights: Employment main reason for migration among men, for women it is marriage

Notably, household consumer expenditure (HCE) is the sum total of monetary values of all goods and services consumed (out of purchase or procured otherwise) by the household on domestic account during a reference period. A household’s usual monthly consumer expenditure is defined as the sum total of monetary values of all goods and services consumed by it on domestic account with a monthly regularity.

The survey, which was initially to be conducted in the January-December 2020 period, was continued till August 15, 2021 due to the COVID-19 pandemic.