Understanding the RBI Financial Inclusion Index

Financial Inclusion (FI) Index – FAQs

1. What is the Financial Inclusion (FI) Index released by RBI?

The FI Index is a composite index launched in 2021 by the Reserve Bank of India (RBI) to measure the extent of financial inclusion in the country. For the year ending March 2025, it scored 67 (out of 100), indicating moderate improvement.

2. What are the components of the FI Index?

The FI Index is based on three parameters:

• Access: Availability of financial services
• Usage: Extent of use of services
• Quality: How beneficial and satisfactory the services are

In 2025, the improvement is mainly due to better usage and quality.

3. Why is the single national score insufficient?

A single national figure hides disparities:

• Across states, districts, and villages
• Between urban and rural areas
• Among different social and economic groups

4. What kind of data is currently missing?

• District-wise or state-wise disaggregation
• Individual scores for access, usage, and quality
• Information on inactive bank accounts, and usage of pensions and insurance

Such details are crucial for localised policymaking.

5. What are the existing achievements in financial inclusion?

• Jan Dhan Yojana and Aadhaar have brought millions into the formal banking system
• Mobile penetration has enabled digital financial access, even in remote areas
• Beneficiary identification and direct transfers have improved

6. What are the current concerns despite progress?

• Insurance and pension usage remains low, especially among informal workers
• Many accounts are inactive due to poor access, costs, or lack of awareness
• ATM or bank branches may still be physically distant for many people

7. What is recommended for better financial inclusion?

• Beyond banking: Promote full use of financial services — credit, insurance, pensions, savings
• Improve digital infrastructure: More access points, better connectivity, affordable services
• Ensure privacy: Build trust by securing user data and providing consent-based services
• Publish granular data: RBI should release detailed breakdowns to support targeted reforms