FINANCIAL INCLUSION INDEX

The Financial Inclusion Index (FI-Index), which measures financial inclusion nationwide, increased significantly from 60.1 in March 2023 to 64.2 in March 2024, according to a report released by the Reserve Bank of India (RBI).

Financial Inclusion Index (FI-Index)

• Comprehensive measure of financial inclusion in India.

• Assesses the extent of financial inclusion across banking, insurance, investments, pension, and postal sectors.

• Developed in consultation with the government and sectoral regulators.

• Annually released in July.

• Ranges from 0 to 100:

• ‘0’: Complete financial exclusion

• ‘100’: Complete financial inclusion

• No base year; reflects cumulative efforts over time.

Parameters:

• Access to Financial Services (35% weightage)

• Measures the availability and ease of accessing financial services.

• Usage of Financial Services (45% weightage)

• Assesses the extent of utilization of financial services.

• Quality of Products and Service Delivery (20% weightage)

• Evaluates service quality, including consumer protection, financial literacy, and service deficiencies.

Indicators:

• Calculated based on 97 indicators.

• Reflects ease of access, availability, usage, and quality of services.

Quality Parameter: Captures consumer protection, financial literacy, service deficiencies, and inequalities in service provision.

By means of strategic initiatives and thorough evaluation, the FI-Index plays a crucial role in monitoring and advancing financial inclusion throughout India, thereby bolstering economic output, reducing poverty, and empowering women.