New Delhi: The Reserve Bank of India (RBI) announced on Tuesday that its Financial Inclusion Index (FI-Index) increased by 4.3 percent during the fiscal year ending March 2025, reflecting significant progress in bringing more Indians into the formal financial system.
FI-Index Hits 67 in March 2025, Up from 64.2 in 2024
The RBI’s composite FI-Index, which was first published in August 2021 for the fiscal ending March 2021, rose from 64.2 in March 2024 to 67 in March 2025. The index measures the extent of financial inclusion across three key dimensions – Access, Usage, and Quality – with gains recorded in all segments.
Deepening Financial Inclusion Driven by Usage and Quality
According to the RBI, the improvement in the FY25 FI-Index was largely driven by increased usage of financial services and enhanced quality, reflecting a deeper penetration of banking, investments, insurance, postal, and pension services. Sustained financial literacy initiatives also contributed to this progress.
Comprehensive Index Covers Multiple Sectors
Developed in consultation with the government and sectoral regulators, the FI-Index is a comprehensive tool that aggregates data from various aspects of financial inclusion. It assigns a composite score between 0 and 100, where 0 indicates complete financial exclusion and 100 denotes full inclusion.
The three broad parameters of the index carry different weights: Access (35%), Usage (45%), and Quality (20%), each encompassing several indicators that assess the depth and reach of financial services.
