About Financial Inclusion Index
- The Financial Inclusion Index (FI-Index) is a composite indicator developed by the Reserve Bank of India (RBI) to measure the extent of financial inclusion in India.
- It captures the level of financial inclusion across different dimensions such as access, usage and quality of financial services.
- The FI-Index helps assess the progress of financial inclusion beyond merely measuring the number of bank accounts.
I. Three Dimensions of FI-Index
The Financial Inclusion Index broadly covers:
- Access: Availability of financial services and infrastructure.
- Usage: Extent to which financial services are actually used.
- Quality: Quality and effectiveness of financial services, including financial literacy and consumer protection.
II. FI-Index: Key Features
- The index is published by the Reserve Bank of India.
- It is designed to capture information on banking, savings, credit, insurance, pensions and digital financial services.
- The index ranges between 0 and 100:
- 0 – Complete financial exclusion
- 100 – Full financial inclusion
III. Financial Inclusion Index – Recent Progress
- India’s Financial Inclusion Index increased from 53.9 in 2018 to 67 in 2026.
- The improvement reflects deeper access to credit, insurance, savings and digital payments.
- Initiatives such as Pradhan Mantri Jan Dhan Yojana (PM-JDY) have contributed to expanding access to formal financial services.
IV. Significance of FI-Index
- Measures the extent of financial inclusion in the economy.
- Helps policymakers identify gaps in access and usage of financial services.
- Tracks progress towards inclusive economic growth.
- Highlights the role of digital payments, banking, credit and insurance in expanding financial inclusion.
| This concept has been elaborately discussed in the following article – 12 Years of Pradhan Mantri Jan Dhan Yojana (PM-JDY) |