New Delhi [India], July 22 : India has made significant progress in financial inclusion, as reflected in the latest Financial Inclusion Index (FI-Index) released by the Reserve Bank of India (RBI).
The FI-Index for March 2025 has increased to 67.0 from 64.2 in March 2024, indicating that more people across the country now have better access to and are actively using financial services.
The improvement in the index signals a broader reach of financial services, with better quality and deeper usage. This growth has been observed across all three sub-indices of the FI-Index - Access, Usage, and Quality.
The RBI stated that the increase for the year ending March 2025 was mainly driven by the Usage and Quality dimensions, highlighting the growing depth of financial inclusion and the success of ongoing financial literacy efforts.
It stated "Index for the year ending March 2025 has since been compiled. The value of FI-Index for March 2025 stands at 67.0 vis-a-vis 64.2 in March 2024, with growth witnessed across all sub-indices, viz., Access, Usage and Quality".
The Financial Inclusion Index was first introduced by the RBI in August 2021 for the financial year ending March 2021.
It was developed in consultation with key stakeholders, including the Government and sectoral regulators, to capture the extent of financial inclusion across the country in a single composite value.
The FI-Index ranges from 0 to 100, where 0 represents complete financial exclusion and 100 denotes full financial inclusion.
The index is based on three key parameters, Access (35 per cent), Usage (45 per cent), and Quality (20 per cent). These parameters consist of various dimensions and are calculated using a total of 97 indicators.
The Access parameter reflects how easily financial services are available, the Usage parameter indicates how frequently and effectively people are using these services, while the Quality parameter focuses on the quality of financial inclusion.
Quality includes aspects like financial literacy, consumer protection, and reduction in inequalities and service deficiencies.
The index also includes data from various sectors such as banking, investments, insurance, postal services, and pensions, making it a comprehensive measure of financial inclusion in the country.
With continued efforts in promoting financial literacy and strengthening the quality of services, the RBI's FI-Index showed that India is steadily moving towards more inclusive financial growth.
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