Financial Inclusion Index: RBI

Financial Inclusion Index: RBI

The Reserve Bank of India has released the Composite Financial Inclusion Index (FI-Index) for the year ended 31st March 2022.

  • India’s Financial Inclusion Index has improved to 56.4 from 53.9 in the previous year 2021.
  • The improvement has been seen across all its sub-indices (Access, Usage and Equality).

Financial Inclusion Index:

  • It is a comprehensive index incorporating details of banking, investments, insurance, postal as well as the pension sector in consultation with the government and respective sectoral regulators.
  • It was developed by the RBI in 2021, without any ‘base year’, and is published in July every year.
  • Aim:
    • To capture the extent of Financial Inclusion across the country.
    • The FI-Index is responsive to ease of access, availability and usage of services and quality of services, consisting of 97 indicators.
  • Parameters:
    • It captures information on various aspects of financial inclusion in a single value ranging between 0 and 100, where 0 represents complete financial exclusion and 100 indicates full financial inclusion.
    • It comprises three broad parameters (weights indicated in brackets) viz., Access (35%), Usage (45%), and Quality (20%) with each of these consisting of various dimensions, which are computed based on a number of indicators.
    • The index is responsive to ease of access, availability and usage of services, and quality of services for all 97 indicators.

Leave a Reply

Your email address will not be published.