The improvement in the FI-Index reflects the depth of financial inclusion across the country, RBI said.
FI-Index has been conceptualized as a comprehensive index covering details of banking, investment, insurance, postal as well as pension sector in consultation with the Government and relevant sectoral regulators.
The index aggregates information on different aspects of financial inclusion into a single value between 0 and 100, where 0 represents no financial inclusion and 100 indicates no financial inclusion.
The FI-Index comprises three broad parameters (weightings shown in brackets), namely, access (35 per cent), utilization (45 per cent), and quality (20 per cent), each of which comprises different dimensions, which are calculated It is determined on the basis of several indicators.
The index is responsive to the accessibility, availability and ease of use of services and the quality of services, comprising a total of 97 indicators. A unique feature of the index is the quality parameter which captures the quality aspect of financial inclusion as reflected by disparities and deficiencies in financial literacy, consumer protection and services.
The annual FI-Index had earlier increased from 53.9 for the period ending March 2021 to 43.4 for the period ending March 2017, reflecting the steady increase in financial inclusion along with the economic growth taking place in the country.
According to the RBI, there has been a renewed national focus on promoting financial inclusion, financial education and literacy, and providing credit to productive sectors of the economy, including the rural and MSME sector, which has led to the improvement in the FI-Index.
FI-Index has been conceptualized as a comprehensive index covering details of banking, investment, insurance, postal as well as pension sector in consultation with the Government and relevant sectoral regulators.
The index aggregates information on different aspects of financial inclusion into a single value between 0 and 100, where 0 represents no financial inclusion and 100 indicates no financial inclusion.
The FI-Index comprises three broad parameters (weightings shown in brackets), namely, access (35 per cent), utilization (45 per cent), and quality (20 per cent), each of which comprises different dimensions, which are calculated It is determined on the basis of several indicators.
The index is responsive to the accessibility, availability and ease of use of services and the quality of services, comprising a total of 97 indicators. A unique feature of the index is the quality parameter which captures the quality aspect of financial inclusion as reflected by disparities and deficiencies in financial literacy, consumer protection and services.
The annual FI-Index had earlier increased from 53.9 for the period ending March 2021 to 43.4 for the period ending March 2017, reflecting the steady increase in financial inclusion along with the economic growth taking place in the country.
According to the RBI, there has been a renewed national focus on promoting financial inclusion, financial education and literacy, and providing credit to productive sectors of the economy, including the rural and MSME sector, which has led to the improvement in the FI-Index.
