The All-India Debt and Funding Survey (AIDIS) carried out by the Nationwide Pattern Survey Organisation (NSSO) and the Shopper Pyramids Family Survey (CPHS) carried out by the Centre for Monitoring Indian Financial system (CMIE) are two nationally consultant surveys that doc how households borrow, save, spend and make investments. Within the wake of the Ministry of Statistics and Programme Implementation (MOSPI) releasing numbers from the most recent (77th) spherical of AIDIS, we examine what each the surveys say in regards to the participation in formal monetary companies by Indian households. We count on affordable similarity between them, provided that each are thought-about nationally consultant, and the essence of the questions requested to elicit family monetary selections are essentially the identical. We acknowledge, nevertheless, that there are sure to be minor variations because the surveys differ of their design, sampling technique, sampled households, and subsequently the responses elicited.
AIDIS is a cross-sectional survey that interviews a special set of households roughly as soon as each ten years, whereas CPHS is a panel survey that interviews the identical set of households as soon as each 4 months. Since it’s a one-time survey, AIDIS collects detailed info on each family participation in and allocation in the direction of a collection of economic devices whereas CPHS solely captures the previous. AIDIS follows a two-stage stratified sampling technique whereas CPHS follows a multi-stage stratified sampling technique. AIDIS pattern includes extra rural than city households, whereas the vice-versa holds true for CPHS. Retaining these caveats in regards to the surveys in thoughts, we proceed to take a look at how the numbers stack up vis-à-vis participation in formal monetary property first, and liabilities later.
Participation in formal monetary property
Desk 1 describes family participation in formal monetary property in response to the 2 surveys. Each the surveys report greater than 90 per cent of households proudly owning at the very least one checking account and roughly one-two % of households investing in mutual funds, shares and shares. However CPHS reviews considerably greater participation in submit workplace financial savings accounts, pension/PF accounts, life insurance coverage, and medical insurance. A few of these variations will be attributed to the best way through which the questions are framed, and information is collected throughout the 2 surveys.
For instance, CPHS has a direct query on members’ protection underneath medical insurance and we think about households with at the very least one member lined underneath medical insurance to measure medical insurance participation. Nonetheless, in AIDIS, we are able to solely use fee of premium for medical insurance as a proxy for protection, thus probably excluding these lined underneath state and employer sponsored medical insurance. This may increasingly clarify, at the very least partly, the considerably greater determine for medical insurance in CPHS. For a few of the different monetary property nevertheless, the style through which the questions are requested and participation measured is broadly the identical, but massive variations prevail throughout the findings of the 2 surveys. Variations within the share of households with pensions, life insurance coverage and submit workplace account is greater than double throughout the 2 surveys. 
Participation in liabilities
Family participation in liabilities, each formal and casual, are compiled in Desk 2. Each surveys report a 3rd of the households to be indebted and one in 5 households to have a proper mortgage. However, CPHS reviews a considerably greater share of households having a casual mortgage (33%) than AIDIS (14%). On nearer evaluation, we discover this distinction to be primarily as a result of CPHS, in contrast to AIDIS, additionally paperwork credit score taken from outlets underneath casual loans. The numbers converge after we exclude these loans whereas measuring casual mortgage participation in CPHS. Nonetheless, CPHS nonetheless reviews a considerably greater share of city households having casual mortgage(s) whereas AIDIS reviews a considerably greater share of rural households having formal mortgage(s).
Lastly, we examine family participation in loans taken for various functions which are documented in each the surveys. These numbers are compiled in Desk 3. Each surveys report moderately related share of households which have taken loans for housing enhancements, well being and schooling bills, and funding. CPHS reviews a considerably greater share of households which have taken loans for consumption expenditure, and right here once more, the numbers converge after we exclude credit score taken from outlets. AIDIS reviews a considerably greater share of households which have taken loans for investments in enterprise. This may be as a result of AIDIS probes its respondents on enterprise associated loans in better element, underneath 4 separate classes of income and capital expenditure on farm and non-farm companies, whereas CPHS collects this info underneath a standard head of loans taken for enterprise funding. The next share of households report taking loans for repaying debt in CPHS (4.2%) than in AIDIS (0.8%).
To summarise the findings, we discover numbers on checking account possession in addition to incidence of indebtedness to be comparable throughout each the surveys. Nonetheless, CPHS reviews considerably greater participation in different formal monetary property like post-office financial savings, pension/PF accounts, and life and medical insurance, in comparison with AIDIS. Whether or not this is because of any inherent limitation of the CPHS sampling technique as critiqued by Jean Dreze and Anmol Somanchi deserves additional investigation.
We hope this comparability permits survey designers and researchers to deliberate on what could make each CPHS and AIDIS richer sources of knowledge on Indian households than they already are. As an example, we see benefit in CPHS including questions in regards to the participation in and utilization of e-wallets and different digital monetary companies, that AIDIS has captured on this spherical. Equally, CPHS has proven that outlets are a serious supply of casual credit score amongst Indian households, and this requires different surveys like AIDIS to think about outlets as a reliable supply of casual credit score to get a extra complete and correct image of indebtedness amongst Indian households.
 AIDIS has collected family information as on June 30, 2018. We use information from the Could-August 2018 wave of CPHS to make the numbers comparable
 A family’s participation in an asset or a legal responsibility refers back to the family’s possession of the asset or uptake of mortgage, whereas a family’s allocation in the direction of an asset or a legal responsibility refers back to the quantity the family has invested within the asset or the mortgage quantity that it has borrowed
 AIDIS follows two-stage stratified sampling the place the census villages/sub-units of villages are the First Stage Items (FSUs) in rural areas and blocks/sub-units of blocks are the FSUs in city areas. The Second Sampling Items (SSUs) are households located within the FSUs. The choice of the FSUs and SSUs is completed utilizing Easy Random Sampling With out Alternative (SRSWOR)
 CPHS follows multi-stage stratified sampling technique the place homogeneous areas type the broadest degree of stratification. Homogenous areas are neighbouring districts with related agroclimatic circumstances, urbanisation ranges, and feminine literacy charges. CPHS divides India into 110 homogeneous areas. The villages and cities of 2011 Census then act because the Main Sampling Items (PSUs) inside these homogeneous areas. Households from these PSUs turn into the Final Sampling Items (USUs)
 AIDIS interviewed 69,445 rural and 47,006 city households throughout go to 1, and 68,291 rural and 44,781 city households throughout go to 2. CPHS interviewed 53,337 rural and 95,823 city households throughout the Could-August 2018 wave
 After making use of weights to the AIDIS pattern, we’ve got a complete of 26.01 crore households all-India, with 17.24 crore rural and eight.77 crore city households. After making use of weights to the CPHS pattern, we’ve got a complete of 29.37 crore households all-India, with 20.07 crore rural and 9.3 crore city households
 CPHS collects info on excellent financial savings in addition to financial savings made throughout the information assortment interval (Could-August 2018) throughout totally different financial savings devices, and we think about these for measuring participation in submit workplace financial savings accounts, pension/provident fund accounts, mutual funds and shares, and life insurance coverage
 For measuring participation in AIDIS, we think about households having a non-zero stability in financial institution accounts, submit workplace financial savings accounts, and mutual funds and shares. For pension accounts, we think about households with at the very least one member lined underneath Atal Pension Yojana, or which have made contributions to pension/PF accounts. For all times insurance coverage, we think about households which have paid premium for endowment/term-life insurance coverage, households enrolled underneath Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), households with at the very least one member having life insurance coverage, or if the sum assured underneath life insurance coverage is larger than zero for the family, as proxies
 Formal liabilities are loans taken from monetary establishments reminiscent of banks, co-operatives, microfinance establishments, self-help teams, and so on. whereas casual liabilities are loans taken from moneylenders, employers, mates, family, and so on.
Cite this merchandise:
Niyati Agarwal, R. S. (2022). Evaluating Participation in Formal Monetary Providers throughout Two Nationally Consultant Surveys: CPHS vs. AIDIS. Retrieved from Dvara Analysis.
Niyati Agarwal, Rakshith S. Ponnathpur & Sahana Seetharaman. “Evaluating Participation in Formal Monetary Providers throughout Two Nationally Consultant Surveys: CPHS vs. AIDIS.” 2022. Dvara Analysis.
Niyati Agarwal, Rakshith S. Ponnathpur & Sahana Seetharaman. 2022. “Evaluating Participation in Formal Monetary Providers throughout Two Nationally Consultant Surveys: CPHS vs. AIDIS.” Dvara Analysis.