On July 9, the Reserve Bank of India unveiled its Financial Inclusion Index for FY24, showing an increase to 64.2 from 60.1 in March 2023. The RBI attributed this improvement primarily to the Usage dimension, indicating a deeper level of financial inclusion.
Read along to learn more about the major findings of the index and how far we have reached in our aim of providing financial services to all the citizens.
What’s Happening?
The Reserve Bank’s Financial Inclusion Index, which measures the level of financial inclusion, increased to 64.2 in March 2024, reflecting progress across all metrics. This index consolidates data on different facets of financial inclusion into a single value from 0 to 100, where 0 signifies total financial exclusion and 100 denotes complete financial inclusion.
The annual Financial Inclusion Index for the period ending March 2021 was 53.9, up from 43.4 for the period ending March 2017. This index is released every year in July.
India’s financial inclusion is increasing exponentially with every passing year.
Government Initiatives
Financial inclusion continues to be a major focus, with initiatives such as the Pradhan Mantri Jan Dhan Yojana (PMJDY), Pradhan Mantri Jeevan Jyoti Bima Yojana, Pradhan Mantri Suraksha Bima Yojana, MUDRA, Stand Up India, and Atal Pension Yojana making notable progress.
What’s More?
The FI-Index is designed as a comprehensive measure, integrating data from the banking, investment, insurance, postal, and pension sectors, developed in collaboration with the government and relevant sectoral regulators. The index evaluates the ease of access, availability, usage, and quality of financial services.
According to the RBI, a unique aspect of the index is the quality parameter, which assesses financial inclusion through indicators such as financial literacy, consumer protection, and service deficiencies and inequalities.
That’s it for today. We hope you’ve found this article informative. Remember to spread the word among your friends. Until we meet again, stay curious!
*This article is for informational purposes only. This is not investment advice.
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