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Financial Inclusion Index

Reserve Bank of India’s first composite Financial Inclusion Index (FII) unveiled.


  • The annual FII for the financial year ended March 2021 crossed the halfway mark to 53.9, as compared to 43.4 for the year ended March 2017,


  • FII have a single value ranging between 0 and 100, where 0 represents complete financial exclusion and 100 indicates full financial inclusion.


  • FII is a comprehensive index incorporating details of banking, investments, insurance, postal as well as the pension sector in consultation with government and sectoral regulators.

 

What is financial Inclusion Index ?

  • Financial Inclusion is the process of ensuring access to appropriate financial products and services needed by all sections of the society in general and vulnerable groups such as weaker sections and low income groups in particular at an affordable cost in a fair and transparent manner by mainstream institutional players.

 

Objectives

  • To establish proper financial institutions to cater to the needs of the poor people.

 

Three Dimension of FII

Financial inclusion is determined by three dimensions:

1.Usage

2. Barriers

3.Access to financial inclusion

 

Keywords
Financial Inclusion Index , RBI Issue FII, Financial Inclusion.