FINANCIAL INCLUSION INDEX (FI-INDEX)
3rd August, 2022 Economy
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- 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.
- 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:
- Access, with a weightage of 35 per cent;
- Usage with 45 per cent weightage; and
- 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.