| Why in the news? | A recent survey by the National Bank for Agriculture and Rural Development (NABARD) highlights a remarkable increase in the average monthly income of rural households, which rose by 57.6% over the past five years. |
| Survey Name | 'All India Rural Financial Inclusion Survey (NAFIS) 2021-22' |
| Income Growth | - Avg. monthly income increased from ₹8,059 (2016-17) to ₹12,698 (2021-22). - Nominal CAGR of 9.5%. |
| Financial Savings Improvement | - Avg. annual savings rose to ₹13,209 from ₹9,104. - Percentage of households with savings increased to 66% from 50.6%. |
| Outstanding Debt Trends | - Proportion of households with debt increased from 47.4% to 52%. |
| Insurance Coverage Increase | - Households with at least one insured member surged from 25.5% to 80.3%. |
| Expenditure Patterns | - Avg. monthly expenditures grew from ₹6,646 to ₹11,262. - Share of food in total consumption decreased from 51% to 47%. |
| Institutional Borrowing Rise | - Institutional borrowing for agricultural households rose to 75.5% from 60.5%. - Non-institutional borrowing decreased from 30.3% to 23.4%. |
| KCC Effectiveness | - Kisan Credit Card (KCC) program expanded financial inclusion among rural farmers. |
| Pension Coverage Improvement | - Pension coverage among households increased from 18.9% to 23.5%. |
| Financial Literacy and Behavior | - Improvements in financial literacy and better financial behaviors observed. |
| Decline in Landholdings | - Avg. size of landholdings decreased from 1.08 hectares to 0.74 hectares. |
| About CAGR | - Compound Annual Growth Rate (CAGR) is the annual growth of assets over a period. |
| KCC Scheme | - Introduced in 1998 for credit support to farmers. - Extended to fisheries and animal husbandry farmers in Budget 2018-19. |
| NABARD Overview | - Established in 1982 to promote sustainable agriculture and rural development. - Focuses on agri-finance, infrastructure, microfinance, and rural entrepreneurship. |
