MACROPEDIA
The Reserve Bank of India released the Composite Financial Inclusion Index on 31st March 2022.
India’s Financial Inclusion Index has improved to 56.4 from 53.9 in the previous year 2021. The improvement has been seen across all Access, Usage, and Equality. It is a comprehensive index incorporating details of banking, investments, insurance, postal as well as the pension sector in consultation with the government and respective sectoral regulators.
It was developed by the RBI in 2021, without any ‘base year’, and is published in July every year. The aim is To capture the extent of Financial Inclusion across the country. The financial Inclusion Index is responsive to ease of access, availability, and usage of services, and quality of services, consisting of 97 indicators.
What is Financial Inclusion?
Financial inclusion is the process of ensuring access to financial services and timely and adequate credit where needed by vulnerable groups such as weaker sections and low-income groups at an affordable cost.
In a country like India, financial inclusion is an important part of the development process. Since 1947, the combined efforts of successive governments, regulatory institutions, and civil society have helped in increasing the financial inclusion net in the country.
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