Question
Which of the following factors has the highest
weightage in RBI’s Financial Inclusion Index?Solution
Ans. B The RBI conceptualised and constructed the Financial Inclusion Index (FI-Index) as a comprehensive measure that incorporates details of banking, investments, insurance, postal as well as the pension sector in consultation with the government and regulators. The FI-Index comprises of three broad parameters (weights indicated in brackets) viz., • Access (35%), • Usage (45%), and • Quality (20%) The FI-Index has been constructed without any ‘base year’ and as such it reflects cumulative efforts of all stakeholders over the years towards financial inclusion. The annual FI-Index for the period ending March 2021 is 53.9 as against 43.4 for the period ending March 2017.
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