FI-Index: The Reserve Bank of India (RBI), on 17 August 2021 announced the formation of a composite Financial Inclusion Index (FI-Index) to capture the extent of financial inclusion across the country.
- The annual FI-Index for the period ended March 2021 stood at 53.9 compared with 43.4 for the period ended March 2017.
- RBI’s financial inclusion index (FI-Index) will be published annually in July.
- It is a comprehensive index that incorporates details of banking, investments, insurance, postal as well as the pension sector.
- It is created in consultation with the government and respective sectoral regulators.
- There is no base year for this Index so it reflects the cumulative efforts of all stakeholders over the years towards financial inclusion.
- The index captures information on various aspects of financial inclusion in a single value ranging between 0 and 100.
- The 0 represents complete financial exclusion while 100 indicates full financial inclusion.
- The Financial Inclusion Index has been framed based on three broad parameters—
1. Usage (45 percent)
2. Access (35 percent)
3. Quality (20 percent)
- The parameters were computed based on 97 indicators.
- The Financial Inclusion Index will be responsive to ease of access, availability and usage of services, and quality of services.