NABARD released Second All India Rural Financial Inclusion Survey (NAFIS) 2021-22

Posted 11 Oct 2024

2 min read

NAFIS was launched in 2016-17 as a national level survey that offers comprehensive overview of rural population in terms of their status of livelihoods and level of financial inclusion (including loans, insurance, pension etc.).

Second NAFIS provides key insight into economic and financial indicators of rural development since 2016-17.

Key highlights of survey

Average monthly income of households increased by 57.6%.
Share of food in consumption basket of households declined from 51% to 47%.
Kisan Credit Card as a prominent instrument of financial inclusion in rural farm sector has been found to be very effective.
Average size of landholding declined to 0.74 hectare from 1.08 hectare.
Proportion of respondents indicating good financial literacy increased from 33.9% to 51.3%.
Proportion of agricultural households that took loans from institutional sources increased from 60.5% to 75.5%.

Reasons for rise in rural income

Government Support: Example, under Mahatma Gandhi National Rural Employment Guarantee Scheme, 5.6 crore households availed employment (January 2023), thus increasing their incomes and provides livelihood security.
Rise in Rural Female Labour Force Participation Rate: From 19.7% in 2018-19 to 27.7% in 2020-21 (Economic Survey 2022-23).

About NABARD (National Bank for Agriculture and Rural Development)

It was formed based on recommendation of B. Sivaraman Committee.
It is India’s apex development bank, established in 1982 under an Act of Parliament to promote sustainable and equitable agriculture and rural development.

NAFINDEX: Measure of Financial Inclusion

Based on field level data collected through NAFIS 2016-17, NAFINDEX has been constructed for different states of India.
Three dimensions, traditional banking products, modern banking products, and payment systems, are considered for constructing the index.