23 AUG,2021 | MEDC
RBI’s recently introduced Financial Inclusion Index (FI Index) suggests that the effort put in so far to improve access to financial services seems to be paying off. The index will be a single value between 0 and 100, wherein 0 represents complete financial exclusion and 100 shows full financial inclusion. As per the RBI’s assessment, the FI Index for the period ended March 2021 was 53.9 as against 43.4 for the period ended March 2017. The index will be published annually by RBI in July, and it will have three broad parameters with weights – access (35%), usage (45%), and quality (20%). Financial inclusion is the need of the hour as it promotes inclusive growth. This matters all the more in the current Covid situation, where socioeconomic inequalities are rising. What can be measured can be managed. RBI deserves credit for coming up with this innovative idea.
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