India's Financial Inclusion Index Rises to 67.0 in FY25

RBI FINANCIAL INCLUSION INDEX 2024–25: INDIA’S PROGRESS IN ACCESSIBLE BANKING

What Happened?

The Reserve Bank of India (RBI) announced that the Financial Inclusion Index (FII) rose to 67.0 in the financial year 2024–25 (FY25), up from 64.2 in FY24 and 60.1 in FY23. The index measures how deeply and effectively financial services are reaching people across the country, reflecting India’s expanding financial ecosystem.

What Does the Index Measure?

The Financial Inclusion Index evaluates the extent of financial inclusion through three key dimensions:

• Access (35% weight): Availability of financial institutions and services
• Usage (45% weight): Frequency and extent of use of financial services
• Quality (20% weight): Financial literacy, consumer protection, and service delivery standards

The overall score ranges from 0 to 100 — where 0 indicates complete exclusion and 100 signifies full financial inclusion.

Why Did the Score Improve?

• Increased adoption and usage of formal financial services
• Improvement in the quality and accessibility of banking services
• Rising levels of financial literacy and awareness
• Government and RBI initiatives targeting remote and underserved communities

How Was This Achieved?

• Expansion of financial inclusion schemes such as Pradhan Mantri Jan Dhan Yojana (PMJDY)
• Over 558 million bank accounts opened under PMJDY
• Nearly 311 million accounts are in the name of women, promoting gender inclusion
• Significant account openings in rural and semi-urban regions

Expert View

According to Deepak Verma, CEO of FINDI, the steady growth of the index highlights that financial services in India are not only reaching more people but are also being used in meaningful and sustainable ways to enhance economic participation.

Conclusion

India’s progress on financial inclusion goes beyond providing access to bank accounts. The focus has shifted to ensuring that individuals actively use these accounts for savings, credit, insurance, and pension schemes. This holistic approach marks a crucial step toward real financial empowerment and inclusive economic growth.