Index shows notable improvement
Financial Inclusion Index Shows Rising Access and Usage: The Reserve Bank of India (RBI) recently released the latest Financial Inclusion Index (FI-Index) for FY25, which shows an improvement from 64.2 in FY24 to 67. This growth reflects a broad-based progress across all segments—Access, Usage, and Quality—driven by digital expansion and financial education efforts.
The FI-Index was first launched in 2021 and is updated annually every July. It acts as a composite measure to track the penetration and reach of formal financial services across India.
Understanding the FI-Index structure
The index ranges from 0 to 100, where 0 represents complete financial exclusion, and 100 indicates full financial inclusion. This helps monitor the impact of inclusion policies and reforms across sectors.
The index is composed of three key parameters:
- Access (35% weight): Number of bank branches, ATMs, and BC outlets
- Usage (45% weight): Frequency of account usage, credit uptake, mobile transactions
- Quality (20% weight): Availability of financial literacy programs, grievance redressal, and user awareness
Static GK fact: The Financial Inclusion Index does not have a base year, making it a dynamic, forward-looking tool.
Multi-sector coverage and impact
The FI-Index covers five broad sectors—banking, insurance, pensions, investment, and postal services. It ensures a holistic measurement of how Indians interact with the financial ecosystem.
This year’s improvement is particularly credited to digital inclusion, Jan Dhan accounts, expansion of micro-insurance, and higher pension enrolments through Atal Pension Yojana and NPS.
Static GK tip: The Pradhan Mantri Jan Dhan Yojana (PMJDY), launched in 2014, was a turning point in boosting account ownership across rural India.
Role of digital and literacy initiatives
The consistent increase in the FI-Index highlights the effectiveness of financial literacy programs, especially those led by RBI’s Financial Literacy Week, SEBI awareness drives, and initiatives by PFRDA and IRDAI.
Digital platforms like UPI, mobile wallets, and AePS have also played a major role in increasing the frequency and depth of usage in both urban and rural regions.
Static GK fact: As per recent data, over 50 crore Jan Dhan accounts have been opened, of which 66% are in rural/semi-urban areas.
Static Usthadian Current Affairs Table
Financial Inclusion Index Shows Rising Access and Usage:
| Topic | Detail |
| Latest FI-Index score (FY25) | 67 |
| FI-Index score (FY24) | 64.2 |
| First release year | 2021 |
| Released by | Reserve Bank of India (RBI) |
| Parameters | Access (35%), Usage (45%), Quality (20%) |
| Index range | 0 (exclusion) to 100 (inclusion) |
| Sectors covered | Banking, Insurance, Investments, Pension, Postal |
| Frequency of release | Annually, every July |
| Digital contributor | UPI, AePS, Mobile Wallets |
| Major inclusion scheme | Pradhan Mantri Jan Dhan Yojana (PMJDY) |
