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India's financial inclusion index surged to 70.0 in March 2026 from 67.0 in March 2025, as per the Reserve Bank of India's (RBI) latest data on the composite Financial Inclusion Index (FI-Index) for the fiscal year ending March 2026.
Growth occurred across all the sub-indices that make up the aggregate value. According to the RBI statement, the improvement in the FI-Index this year is mainly on account of an uptick in the Usage parameter, thereby reflecting a deepening of financial inclusion. The Financial Inclusion Index was first introduced by the RBI in August 2021 for the financial year ending March 2021. It was developed in consultation with key stakeholders, including the Government and sectoral regulators, to capture the extent of financial inclusion across the country in a single composite value. The FI-Index ranges from 0 to 100, where 0 represents complete financial exclusion and 100 denotes full financial inclusion. The index is based on three key parameters: Access (35 per cent), Usage (45 per cent), and Quality (20 per cent). These parameters consist of various dimensions and are calculated using a total of 97 indicators. The Access parameter reflects how easily financial services are available, the Usage parameter indicates how frequently and effectively people are using these services, while the Quality parameter focuses on the quality of financial inclusion. Quality includes aspects like financial literacy, consumer protection, and reduction in inequalities and service deficiencies. The index also includes data from various sectors such as banking, investments, insurance, postal services, and pensions, making it a comprehensive measure of financial inclusion in the country. With continued efforts in promoting financial literacy and strengthening the quality of services, the RBI's FI-Index showed that India is steadily moving towards more inclusive financial growth. (ANI)
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