The Reserve Bank of India has launched the Financial Inclusion Index (FI Index) to capture the extent of financial inclusion across the country.
The comprehensive FI-Index incorporates details of banking, investments, insurance, postal as well as the pension sector in consultation with government and respective sectoral regulators.
This Index primarily comprises three broad parameters, which are Access, Usage and Quality. Their weights are 35%, 45% and 20%, respectively. Each of these consist of several dimensions which are then computed into different
The Quality parameter is a unique feature that captures the quality aspect of financial inclusion. This may be reflected by financial literacy, consumer protection, and inequalities and deficiencies in
This Index records information and data on several aspects of financial inclusion on a scale of 0-100. On this scale, ‘0’ refers to complete financial exclusion and ‘100’ refers to complete financial inclusion.
The Index is also responsive to ease of access, availability, and usage of services, and quality of services, in all 97 indicators.
No base year
The FI-Index has been constructed without any ‘base year’ and as such it reflects cumulative efforts of all stakeholders over the years towards financial inclusion.
The annual FI-Index for the period ending March 2021 is 53.9 as against 43.4 for the period ending March 2017.
The FI-Index will be published annually in July every year.
Source: Economic Times