RBI’s Financial Inclusion Index: Why is it important? Key questions answered
The FI-Index will assess the quality and extent of financial inclusion in India and will be published every July for the previous financial year ended March.
The Reserve Bank of India (RBI) introduced the Financial Inclusion Index (FI-Index) on August 17 to gauge how many people in the country have access to banking and financial services and products and the usage and quality of such facilities.
“Financial Inclusion has been viewed as a key enabler for achieving inclusive and sustainable development worldwide,” the RBI said in a statement on April 7, 2021.
The central bank had revealed the National Strategy for Financial Inclusion: 2019-2024 on January 10, 2020, to achieve the objective of financial inclusion in a coordinated and time-bound manner.
Financial inclusion is the process of extending the reach of formal banking services and products to the unbanked population in the country. According to experts, financial inclusion goes beyond opening a bank account.