FinScope 2015 Consumer Survey India – Under the Poorest States Inclusive Growth Programme

FinScope Consumer India (PSIG) 2015 is the first financial inclusion survey of the Poorest States Inclusive Growth (PSIG) in which a representational cross-section of adult Indians were interviewed comprehensively about their financial behaviour, familiarity with financial terminology and their use of financial services. A total of 16,000 households were covered by the survey from which one person from each household aged 18 years or over was selected (with equal opportunity for interviewing in the second half of 2015).

The introductory Chapter (one) presents the background and the setting for the analysis. Some of the important issues relevant to the use of the study are reviewed together with the interpretation of the data. The objectives of the FinScope Surveys developed by FinMark Trust (FMT) are also presented here. Differences between the FinScope findings discussed in this report and other surveys such as the AIDIS are in part due to differences in definition and scope of the surveys being compared, the computation of the variables, differences in terminology and focal areas (adult versus household) and the period the surveys were implemented. Hence, caution should be exercised when comparing variables in this report against other survey documents. Chapter two presents the literature review of the Indian financial sector, particularly relevant to the PSIG states. The chapter explores the financial products that are available to the public emphasizing the initiatives in the financial sector that have driven the agenda of financial inclusion. Further, the chapter looks at the economic variables such as sectorial production and gross domestic products of the PSIG states in relation to the rest of India to give a background of the PSIG economic status. It shows that India (and the PSIG) has an extensive, diverse and apparently inclusive financial architecture. Despite significant growth in private sector banks in recent years, the public sector continues to predominate; with 70% of total bank credit being accounted for by the government-owned banks.