Present ongoing study

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Study on “Understanding Financial Behavior of Poor Households in India” 

Rationale of the study

Financial behavior of household is determined by their economic and social priorities that vary across regions. Kind of earning, awareness about the financial products and access to financial services result in different kind of household response to the same situation. Building a clear understanding of the varying behavior and management of financial situations by households in rural and urban areas will help in addressing their financial requirements, formulate better strategies to bridge the financial gap and help develop suitable products tailored to meet their diverse financial needs.  

Objective of the study

Main objective of the study is to understand the financial behavior of the excluded population who are generally poor households living in remote rural areas and in urban slums. The study also focuses on understanding the financial products and services required by the households and the delivery mechanisms that are best suitable to them.


Study is conducted in seven states of India (Assam, Uttar Pradesh, Rajasthan, Gujarat, Orissa, Karnataka and Tamil Nadu) selected based on fixed criteria and the total number of sample household studied is about 900 household.   

Through structured questionnaire both qualitative and quantitative data are collected at household level with particular focus on income earned, household expenditure pattern, savings and borrowing behavior of the household. In addition in-depth case studies of households are done to document different kinds of household response to financial situations.  

Major expected outcome of the study

·  To identify and document various management strategies adopted by poor households across India.

·       ·  Study findings will help in understanding the poor household’s awareness about financial products, their access to formal financial services of poor households in rural and urban areas.

Insights from the field will help in developing training modules, help in influencing policy makers to address the issue of financial exclusion.  


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