Financial status of the poor: a study in Udaipur district

Abstract

A village-level study conducted in Udaipur district of Rajasthan attempted to map the financial status of the rural population and the funds flow indicated that the overall asset-savings-income profile of the rural poor was not alarming. However, most of the assets and savings are liquid, forcing the poor to borrow at high cost. The study reveals the failure of financial institutions to penetrate the savings and loan market. It also reconfirms earlier findings that health-related expenses are one of the major causes of indebtedness amongst the poor.