RBI Study: 32% of survey respondents in Mizoram know only about savings accounts

According to the Bulletin, debt distress is rising, with a surge in default rates and an appreciating US dollar.

A Reserve Bank of India (RBI) study conducted in the state of Mizoram revealed that about 32 percent of the respondents who participated in a survey were not aware of any financial products other than savings bank account.

Also, about 20 percent of the respondents reported lack of knowledge about basic payment options and about 43 percent of the respondents reported a lack of usage of available options despite awareness, the study showed.

The study evaluates the determinants of financial inclusion and financial literacy in the under-banked northeastern region of India based on primary data collected through a survey in the State of Mizoram.

A total of 523 respondents were selected from eight blocks covering four districts of Mizoram.

According to this, about half of the respondents were found to be unaware of financial institutions other than banks, viz., non-banking financial companies, microfinance institutions, and small finance banks.

Low CD ratio

Also, the study showed that the credit-deposit (C-D) ratio in the state of Mizoram is quite low as compared to the national average.

“There is a need to create awareness about the availability of credit-related products in the State and to make them more accessible and affordable so that common people may avail the same,” RBI said in a study document.

The CD ratio refers to the assets and liabilities of the banks.

A low CD ratio suggests relatively poor credit growth compared with deposit growth and a high CD ratio means higher demand for credit in an environment of low deposit growth.

The DRG Study titled, “Determinants of Financial Literacy and Financial Inclusion in North-Eastern Region of India: A Case Study of Mizoram”, is co-authored by Bhartendu Singh, Raj Rajesh, Ramesh Golait, and K. Samuel L.