The RBI’s financial inclusion index (FI-Index) which measures the amount of financial inclusion across the country stood at 56.4 in March 2022 compared to 53.9 in March 2021, indicating growth across all segments. The index records data on different facets of financial inclusion in a single value ranging from 0 to 100, where 0 represents total financial exclusion and 100 represents complete financial inclusion.
“The value of FI Index for March 2022 stands at 56.4 vis-a-vis 53.9 in March 2021, with growth witnessed across all the sub-indices,” the RBI said in a statement.
The three broad parameters that make up the FI-Index are Access (35%), Usage (45%), and Quality (20%). Each of these parameters consist of several dimensions and are calculated using a number of indicators.
The FI-Index was created without the use of a “base year,” and as a result, it captures all of the stakeholders’ cumulative efforts over time to promote financial inclusion. The index is released annually.
In August last year, the central bank said it has been conceptualised as a comprehensive index, incorporating details of banking, investments, insurance, postal, as well as the pension sector, in consultation with government and respective sectoral regulators.
