In March 2022, RBI's financial inclusion index increased to 56.4

3 Aug 2022 , 08:21 AM

The Reserve Bank of India’s composite financial inclusion index (FI-Index), which measures the extent of financial inclusion nationwide, increased across all metrics in March 2022 and reached 56.4.

The index was 53.9 in March of the previous year. For the five years ended in March 2017, it was at 43.4, indicating a significant increase in the accessibility of financial services.

The index records data on various facets of financial inclusion in a number ranging from 0 to 100, where 0 denotes total financial exclusion and 100 denotes complete financial inclusion.

It includes three major parameters: access, which is weighted at 35%, utilisation, which is weighted at 45%, and quality, which is weighted at 20%. It includes information about the banking, investments, insurance, postal, and pension industries.

According to RBI, the Index responds to factors such service accessibility, usability, and service quality.

The index is presently released by RBI yearly in July.