Creating a balance sheet for every Indian

Despite the work put in by the regulators and support from the finance ministry, a few steps need to be taken to make AAS more effective

When our household help, Sapna, asked for a substantial loan, my spouse suggested I assess her financial situation and guide her.
 

Sapna and her husband receive their salaries in their bank accounts. Analysing their bank passbooks helped me understand her cash flow situation. They were paying equated monthly instalments (EMIs) on a couple of consumer durables loans and a monthly life insurance premium. The balance was withdrawn as cash. They had no other assets except a small plot in their village and some jewellery.
 

The cash withdrawn each month was barely able to cover her rent and other household expenses.