NEWS –The Reserve Bank’s FI-Index rose to 64.2 in March 2024, showing growth across all parameters

HIGHLIGHTS

• About: Developed by RBI in 2021, it covers banking, investments, insurance, postal, and pension sectors without a base year. Published annually in July.
• Aim: Measures financial inclusion nationwide, evaluating access, availability, usage, and service quality through 97 indicators.
• Parameters: Ranges from 0 (complete exclusion) to 100 (full inclusion), based on Access (35%), Usage (45%), and Quality (20%).
• Significance:
  • Measures inclusion level and aids policy-making.
  • Used in development indicators and meets G20 Financial Inclusion Indicators.
  • Facilitates research on financial inclusion’s impact.
• Financial Inclusion Definition: Ensures vulnerable groups like weaker and low-income sections access financial services and credit affordably. Transaction accounts are crucial for broader financial access in India’s development.