RBI’s FI-index improves in 2022 across all parameters

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

RBI financial inclusion
The RBI April 2021 announced that it will form the index for measuring financial inclusion.

The Reserve Bank of India (RBI) on Tuesday said that India’s financial inclusion (FI) index for the year ended March 31, 2022, improved to 56.4 from 53.9 in the previous year, with the index showing growth across all the sub-indices, the central bank said in a press release. The index is published annually in July.

The RBI April 2021 announced that it will form the index for measuring financial inclusion, which is the focus area for the government, central bank and other regulators.

The central bank developed the composite financial inclusion index to capture the extent of financial inclusion across the country by including details of banking, investments, insurance, postal as well as the pension sector. The index comprises three parameters including access, usage and quality. The Index is responsive to ease of access, availability and usage of services and quality of services, consisting of 97 indicators.

The quality parameter includes aspects such as financial literacy, consumer protection, and inequalities and deficiencies in services. The index has been constructed without any base year and reflects the cumulative efforts of all stakeholders over the years toward financial inclusion.

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