What is the Financial Inclusion (FI) Index, and who introduced it?
The FI Index is a measure of financial inclusion introduced by the Reserve Bank of India (RBI) in 2021.
It assesses the level of financial inclusion in the country based on access, usage, and quality.
How has the FI Index changed over the years?
The FI Index has shown improvement over time. It was at 53.9% in March 2021, 56.4% in March 2022, and increased to 60.1% by March 2023.
What are the three parameters that the FI Index assesses, and how are they weighted?
The FI Index evaluates financial inclusion based on three parameters: access (35%), usage (45%), and quality (20%).
These parameters measure how easily people can access financial services, how frequently they use these services, and the quality of services they receive.
What contributed to the increase in the FI Index from 2022 to 2023?
The increase in the FI Index is attributed to improvements in the dimensions of usage and quality of financial services, indicating that more people are using these services and receiving better-quality services.
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