Explanation: About the FI Index:

• The aim of the Index is to capture the extent of financial inclusion across the country.
• The index comprises 3 broad parameters: Access (35% weightage), Usage (45%) and Quality (20%).
• Each of these parameters consists of various dimensions, which are computed based on 97 indicators e.g., the quality parameter includes aspects such as financial literacy, consumer protection, and inequalities and deficiencies in services.
• The index score varies from 0 to 100, where 0 represents complete financial exclusion and 100 indicates full financial inclusion. The index has been constructed without any ‘base year’. It reflects the cumulative efforts of all stakeholders.

Key Findings of the Index

• The extent of financial inclusion across the country has increased to 56.4 in March 2022 showing growth across parameters.
• The index stood at 53.9 in March 2021 and at 43.4 in March 2017. This shows rapid improvement in the reach of financial services over the past 5 years.

Source: EPIC August 2022