Study Reveals Gaps in Financial Planning Among Indian Households
Indians save regularly but rarely invest or plan retirement: FMI study
Business Standard
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A study by IIM Udaipur highlights that while households in Gujarat and Rajasthan regularly save money, they often fail to invest or plan for retirement. This reveals significant gaps in financial capability, despite improvements in financial inclusion since the launch of the Pradhan Mantri Jan-Dhan Yojana (PMJDY).
- 01Households in Gujarat and Rajasthan save regularly but lack investment and retirement planning.
- 02The study was conducted by IIM Udaipur's JM Financial Centre for Financial Research and PRICE.
- 03Gaps in financial capability persist despite increased access due to financial inclusion initiatives.
- 04The findings are based on the first Financial Maturity Index (FMI) study.
- 05Pradhan Mantri Jan-Dhan Yojana (PMJDY) aimed to enhance financial inclusion in India.
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A recent study conducted by the Indian Institute of Management (IIM) Udaipur has revealed that while households in Gujarat and Rajasthan consistently save money, they often do not invest or plan for retirement. This finding highlights a significant gap in financial capability among these households, even a decade after the implementation of the Pradhan Mantri Jan-Dhan Yojana (PMJDY), which aimed to increase financial inclusion across India. The study, known as the Financial Maturity Index (FMI), was carried out by IIM Udaipur's JM Financial Centre for Financial Research and PRICE, emphasizing the need for improved financial literacy and planning.
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The findings suggest that many households in Gujarat and Rajasthan may face financial insecurity in the future due to inadequate retirement planning and investment strategies.
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