MUMBAI: The Reserve Bank of India's Financial Inclusion Index (FI-Index) has risen to 64.2 as of March 2024, indicating growth across all segments. This index measures the level of financial inclusion across the country on a scale from 0 to 100, where 0 signifies total financial exclusion and 100 represents complete financial inclusion.

The FI-Index value of 64.2 in March 2024 marks an increase from 60.1 in March 2023, showing improvement in all sub-indices, according to a statement released by the RBI on Tuesday. The primary contributor to this growth is the "usage" dimension, reflecting a deepening of financial inclusion.

The FI-Index is based on three main parameters: access (35%), usage (45%), and quality (20%), each comprising various dimensions and computed from numerous indicators.

First introduced in August 2021, the FI-Index is designed as a comprehensive measure that includes banking, investments, insurance, postal services, and pensions. It was developed in consultation with the government and respective sectoral regulators.

The index responds to factors like ease of access, service availability, usage, and service quality. A notable feature of the FI-Index is the quality parameter, which captures aspects of financial literacy, consumer protection, and inequalities or deficiencies in services.

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