The Reserve Bank of India has released a financial inclusion index

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admin November 5, 2021
Updated 2021/11/05 at 2:25 PM

The Reserve Bank of India (RBI) has announced the creation of a composite Financial Inclusion Index (FI-Index) to measure financial inclusion in India. The FI-Index for the period ending March 2021 was 53.9, up from 43.4 for the same period in 2017. The Annual Financial Inclusion Index (FII) will track the availability and use of a range of formal financial goods and services, including savings, remittances, credit, insurance, and pensions. It would assign a score to states based on their availability of last-mile financial services. The index will be measured on three dimensions: access to financial services, use of financial services, product quality, and service delivery. The G20 Financial Inclusion Indicators are the same. Every year in July, RBI will publish it. The value of FII is that it provides data on the level of financial inclusion. Financial services are evaluated for use in internal policymaking. It can be used directly in development indicators as a composite metric. It makes it possible to meet the standards of the G20 Financial Inclusion Indicators. It will also make it easier for researchers to look into the effects of financial inclusion and other macroeconomic factors.

 

Source: The Hindu

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