FINANCIAL
INCLUSION INDEX - REPORTS AND INDICES
News: Financial
inclusion index rises with growth across all segments: RBI
What's
in the news?
●
Recently,
the Reserve Bank's FI-Index,
capturing the extent of financial inclusion across the country, rose to 64.2 in
March 2024, showing growth across all parameters.
Financial
Inclusion Index:
●
The
FI-Index is a comprehensive measure of financial inclusion, ranging from 0 to 100, with 0 representing complete
financial exclusion and 100 indicating full financial inclusion.
Published
by - RBI
Interval:
●
The
FI-Index is published annually in
July every year.
Indicators:
It consists of three
main parameters such as
●
Access
(35%)
●
Usage
(45%)
●
Quality
(20%).
The index is based on 97 indicators covering banking, investments, insurance, postal
services, and pensions.
Other
Important Takeaways:
●
It
was developed in consultation with the
government and sectoral regulators to measure ease of access, availability,
usage, and quality of financial services.
●
The
improvement in the index was driven by growth across all sub-indices, with the
usage dimension contributing the most to the overall increase.
● The index has been constructed without a base year, reflecting the cumulative efforts of all stakeholders towards financial inclusion over the years.