FINANCIAL INCLUSION INDEX (FI-INDEX)

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Context

• The Reserve Bank of India's composite financial inclusion index (FI-Index) capturing the extent of financial inclusion across the country rose to 56.4 in March 2022, showing growth across parameters.

The Index

• Reserve Bank of India’s (RBI) financial inclusion (FI) index, was constructed to capture the extent of financial inclusion across the country.
• The index 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.
• The FI index was conceptualised as 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.
• The FI-Index has been constructed without any ‘base year', and is published in July every year. The FI-Index comprises three broad parameters:

1. Access, with a weightage of 35 per cent;
2. Usage with 45 per cent weightage; and
3. Quality with 20 per cent weightage

• It incorporates details of banking, investments, insurance, postal as well as the pension sector.
• The Index is responsive to ease of access, availability and usage of services, and quality of services.

https://economictimes.indiatimes.com/news/economy/indicators/rbis-financial-inclusion-index-rose-to-56-4-in-march-2022/articleshow/93302283.cms