A new survey by the National Sample Survey Organisation (NSSO) shows that rural households have higher debts than their urban counterparts. At the same time, an urban household owns more than double the asset than that of a rural household. A rural household, on an average, owned assets of Rs 10 lakh, while an urban household owned Rs 23 lakh worth of assets. Of the total, 31.4 per cent rural households are under debt as opposed to 22.4 per cent urban households.

According to the 70th round of "Household Assets and Liabilities" survey, the debt to asset ratio of urban households is 3.7 whereas the ratio for rural households stands at 3.2. This means that the average urban household has more debt than asset in comparison to rural household.

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