Salient 3 communications liquidating trust
This is a difficult act to pull off – but we have been fortunate to have enormous help and support to attempt this ambitious exercise.The committee met on six separate occasions, and each such meeting was roughly a day long.These meetings were spent listening to evidence and engaging in debates with a range of highly knowledgeable and thoughtful individuals and firms from across the spectrum of Indian household finance. Nerurkar, Mayank Saxena, and Latha Vishwanath from the Department of Banking Regulation at the RBI for their help in coordinating these meetings.We are most grateful to these individuals and groups who gave of their time so generously to present both data and opinions to the committee, and we list them all at the end of this report. In the run up to each of these meetings of the committee, there were a number of subcommittee meetings, averaging roughly four sub-committee meetings for each meeting of the committee.The remaining items then direct us to propose solutions to these problems.The brief, therefore, is both diagnostic and surgical, both positive and normative.During these meetings, members of the sub-committees worked tirelessly to produce the material that constitutes this report. Our research subcommittee has generated genuinely new and insightful research on household finance in India, exploiting multiple waves of nationally representative datasets (such as the All India Debt and Investment Survey in India, as well as counter-part micro-surveys from Australia, Germany, the UK, the US, Thailand, and China), as well as more specialized surveys (such as the Finscope survey, the Financial Inclusion Insights Survey, and the ICE 360 degree survey) that focus on particular aspects of financial market participation in India.They have also collated work from authoritative and informative secondary sources on these topics, and have interacted extensively with world-renowned experts in these areas to pull in relevant content.
Importantly, these distinctive features of Indian household balance sheets cannot be explained by differences in the demographic characteristics, wealth, or income of Indian households relative to their counterparts in other countries.Indian households tend to borrow later in life and are more likely to reach retirement age with positive debt balances, which is a source of risk given that they are no longer earning income during these years. We note, however, that these traditional structures are increasingly under pressure from shifting demographic patterns, social norms, and changing economic conditions, introducing risks to economic well-being especially as households age. The Indian household finance landscape is distinctive through the near total absence of pension wealth.Pension accounts and investment-linked life insurance products exist, but they are only used frequently by households located in a small group of states, while in most other states, the contribution of pensions wealth to household wealth is negligible. We document high levels of unsecured debt, and perhaps more importantly, debt taken from non-institutional sources such as moneylenders.The Chairman would like to thank Imperial College Business School and the Brevan Howard Centre and its director, Prof.