The financial inclusion of India is on the growth track.
RBI’s latest data shows that Financial Inclusion Index (FI Index), which measures the health of penetration of financial products in India has improved by a healthy margin in FY 2024.
The data shows that the FI Index has increased to 64.2 in March 2024 compared to 60.1 in March 2023. The FI 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.
RBI said that improvement in FI-Index is mainly contributed by usage dimension, reflecting deepening of financial inclusion. The FI-Index 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 FI-Index 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.
