FINANCIAL INCLUSION INDEX Flashcards
WHY IN NEWS?
RBI has released FI-INDEX for year ending with March 2022.
WHAT IS FINANCIAL INCLUSION INDEX?
It is a comprehensive index incorporating details of banking, investments, insurance, postal as well as the pension sector in consultation with the government and respective sectoral regulators.
It was developed by the RBI in 2021, without any ‘base year’, and is published in July every year.
METHOD:
It 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.
It comprises three broad parameters (weights indicated in brackets) viz., Access (35%), Usage (45%), and Quality (20%) with each of these consisting of various dimensions, which are computed based on a number of indicators.
The index is responsive to ease of access, availability and usage of services, and quality of services for all 97 indicators.
REPORT 2022
India’s Financial Inclusion Index has improved to 56.4 from 53.9 in the previous year 2021.
