NABARD released Second All India Rural Financial Inclusion Survey (NAFIS) 2021-22 | Current Affairs | Vision IAS
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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. 
  • Tags :
  • NABARD
  • Financial Inclusion
  • NAFIS 2021-22
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