Consider the following statements regarding RBI’s Financial Inclusion Index-

I.The Financial Inclusion (FI) Index of the Reserve Bank of India (RBI) stood at 60.1 percent for the financial year ending in March 2023.

II.In August 2022, it was conceptualized as a comprehensive index, incorporating details of banking, investments, insurance, postal, as well as the pension sector.

III.The FI-Index comprises three broad parameters – Access (35%), Usage (45%), and Quality (20%), with each of these consisting of various dimensions, which are computed based on a number of indicators.

Which of the following statements is/are correct?

Solution

The Financial Inclusion (FI) Index of the Reserve Bank of India (RBI) stood at 60.1 per cent for the financial year ending in March 2023, as compared to 56.4 per cent in March 2022, due to improvements in Usage and Quality dimensions. The value stood at 53.9 per cent in March 2021.In August 2021, the central bank said it has been conceptualised as a comprehensive index, incorporating details of banking, investments, insurance, postal, as well as the pension sector, in consultation with government and respective sectoral regulators.The FI-Index comprises three broad parameters – Access (35%), Usage (45%), and Quality (20%), with each of these consisting of various dimensions, which are computed based on a number of indicators.