The Reserve Bank of India set up a committee to look at the various facets of household finance in India and benchmark India’s position against both the peer countries and advanced countries. The terms of reference of the panel include suggestions to benchmark the current depth of household financial markets in India vis-a-vis those in other major world markets and identify areas of priority for growth and change. It will also characterise and evaluate Indian households’ demands in formal financial markets (for assets such as pensions as well as liabilities such as home loans) over the coming decade. The panel will also consider whether, how, and why the financial allocations of Indian households deviate from desirable financial allocation and behaviour (e.g., the large household allocation to gold). It will evaluate the design of new systems and the redesign of existing systems of incentives and regulations to encourage and enable better participation by Indian households in formal financial markets. The panel will assess the role of new financial technologies and products — like robo-advising, automatically refinancing mortgages — in the cost-effective provision of high-quality and suitable financial products to Indian households while containing risks.
The report can be found on the RBI website here.