The financial landscape of India is witnessing a positive shift. Recent data from the Reserve Bank of India (RBI) showcases a remarkable enhancement in the country’s Financial Inclusion Index (FI Index) for the fiscal year 2024. This comprehensive index, designed to gauge the penetration of financial products across India, has risen to a commendable 64.2, up from 60.1 in the previous year.
The FI Index, which ranges from 0 (complete financial exclusion) to 100 (full financial inclusion), highlights the growing accessibility and usage of diverse financial services by the Indian populace. This favorable progression is primarily driven by improvements in the usage dimension, signifying a deeper integration of financial inclusion initiatives.
The FI Index comprises three core parameters: Access (35%), Usage (45%), and Quality (20%), each accounting for various dimensions computed through a multitude of indicators. This holistic approach, developed in collaboration with the government and sector-specific regulators, provides a robust assessment of India’s financial inclusion landscape, encompassing banking, investments, insurance, postal, and pension sectors.
The sustained efforts to enhance financial inclusion in India are yielding tangible results, as evidenced by the FI Index’s upward trajectory. This positive trend underscores the country’s commitment to ensuring equitable access to a broad spectrum of financial services, empowering individuals and fostering inclusive economic growth.
