Financial Inclusion Index (FI Index)

The Reserve Bank of India (RBI) has announced a significant improvement in the country’s Financial Inclusion Index (FI Index), which reached 67 percent for the Financial Year (FY) 2025, up from 64.2 percent in FY 2024.

According to an official press release from the RBI, this positive trend is largely attributed to increased usage and better quality of financial services, indicating a deepening of financial inclusion across the nation. Sustained financial literacy initiatives have also played a crucial role in this improvement.

Growth was observed across all three sub-indices that comprise the FI Index:

• Access: This parameter reflects the ease with which financial services are available to the public.
• Usage: This indicates how frequently and effectively people are utilizing these services.
• Quality: This comprehensive parameter includes aspects such as financial literacy, consumer protection measures, and efforts to reduce inequalities and deficiencies in services.

The RBI constructed this composite Financial Inclusion Index in consultation with various stakeholders, including the government. The first FI Index was officially published in August 2021, covering the financial year ending March 2021. The index is a comprehensive measure that integrates data from diverse financial sectors, including banking, investments, insurance, postal services, and pensions, providing a holistic view of financial inclusion in India.