Tài liệu Informal Savings of the Poor : Prospects for Financial Inclusion doc

When the poor have a choice, they choose to

save. Saving safely provides them with a

cushion against shocks. Even today, 100

million households have informal saving

which are outside the fold of the formal

financial system. Tapping the informal saving

of the poor and using these resources for

development is necessary. Designing deposit

products appropriate to the needs of the poor,

ensuring convenience and developing

mechanisms to mobilise the informal saving is

required.

Informal Savings

of the Poor : Prospects for

Financial Inclusion

M.L. Sukhdeve*

Introduction

It is recognised that high domestic savings and investment are crucial for sustenance of high

stable rates of growth of the economy. India continues to remain one of the highest savers

among the emerging market economies. Gross Domestic Saving (GDS) comprises savings of

public sector, private corporate sector and household sectors. In India, it is the household

sector which occupies a position of dominance over the institutional sectors like private

corporate sector and the public sector in terms of generating savings. This sector comprises

individuals, non-government, non-corporate enterprises, off-farm business and non-farm

business like sole proprietorships and partnership. The savings are for smoothening

* General Manager, National Bank for Agriculture & Rural Development, Mumbai

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