What is in news : The Reserve Bank of India introduced the financial inclusion index

Details:

• The Financial Inclusion Index will be used to capture the extent of financial inclusion in India.
• This index was part of the announcements made in first bi-monthly monetary policy of April 2021.

About Financial Inclusion Index (FI Index)

• Financial Inclusion Index has been conceptualised as a comprehensive index comprising the details of banking, insurance, investments, postal and pension sector in consultation with government and sectoral regulators.
• It captures information on different aspects of financial inclusion in a single value in the range of 0 and 100.
• 0 indicates complete financial exclusion while 100 indicates complete financial inclusion.
• It comprises of three broad parameters such as Access, Usage, and Quality. Each of these parameters comprises of various dimensions, that are computed on the basis of different indicators.
• It is responsive to ease of access, availability & usage of services along with quality of services, comprising of all 97 indicators.
• FI-Index has been created without any base year. It reflects cumulative efforts of all stakeholders towards financial inclusion. It will be published annually in July.