Financial inclusion index inches up, all sub-indices rise: RBI

The Reserve Bank of India (RBI) said Tuesday that India’s Financial Inclusion Index (FI-Index) for the year ending March 31, 2022 has improved to 56.4 from 53.9 in the previous year, with marked growth in all of its sub-indices, the central bank said in a press release. The index is published annually in July.

The central bank had announced in April 2021 that it would constitute an index to measure financial inclusion, which is an area of ​​focus for the government, central bank and other regulators.

The Reserve Bank of India has developed the Financial Inclusion Composite Index to measure the extent of financial inclusion across the country by including details of banking, investments, insurance, post as well as the pension sector.

The index consists of three criteria that include access, use, and quality. The FI index responds to ease of access, availability, use and quality of services, consisting of 97 indicators.

The quality parameter includes aspects such as financial literacy, consumer protection, inequality and shortcomings in services.

The index was created without any base year and reflects the cumulative efforts of all stakeholders over the years towards financial inclusion. FE

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