The index is responsive to ease of access, availability and usage of services, and quality of services, comprising all 97 indicators.
The Reserve Bank of India’s (RBI) financial inclusion index (FI) rose to 60.1% in 2022-23 (April-March) from 56.4% due to an improvement in usage and quality dimensions. The annual FI-Index stood at 53.9 as on March 2021.
RBI announced in 2021 that it has conceptualised a comprehensive index incorporating details of banking, investments, insurance, postal as well as the pension sector in consultation with government and respective sectoral regulators.
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 comprises of three broad parameters. These are access, usage, and quality with each of these consisting of various dimensions, which are computed on the basis of a number of indicators.
The index is responsive to ease of access, availability and usage of services, and quality of services, comprising all 97 indicators. The quality parameter captures the quality aspect of financial inclusion as reflected by financial literacy, consumer protection, and inequalities and deficiencies in services. Growth was witnessed across all sub-indices in 2022-23, RBI said.
Source:financialexpress.com