Maarg Manthan · Topic 18.11

Financial Inclusion Index (Reserve Bank of India)

Current Affairs & Government Schemes › Important Reports, Indices and Surveys · Topic 18.11

The Financial Inclusion Index (FI-Index) is a composite index of the Reserve Bank of India (RBI) that measures the extent of financial inclusion across India on a scale of 0 to 100, where 100 means full inclusion. It was first published in August 2021 for the year ending March 2021, when it stood at 53.9, and has been released annually since. It has three sub-indices, Access (35 per cent weight), Usage (45 per cent) and Quality (20 per cent). The RBI reported the FI-Index at 67.0 for March 2025 and at 70.0 for March 2026, released on 16 July 2026.

5 min read · UPSC Prelims · Current Affairs & Government Schemes · Important Reports, Indices and Surveys

At a Glance

Publisher Reserve Bank of India
Scale 0 to 100
Sub-indices Access 35, Usage 45, Quality 20
First value 53.9 (March 2021)
Latest 70.0 (March 2026)
Exam link UPSC Prelims, Current Affairs and Government Schemes: Important Reports, Indices and Surveys

Where Does It Fit?

This is a measure of banking and payments reach. It connects to the microfinance committee discussed earlier, to Jan Dhan accounts and to the poverty index indicator on bank accounts. Previous topic: Ease of Living Index. Next topic: Business Responsibility and Sustainability Reporting (BRSR) Framework (SEBI).

How Is the FI-Index Constructed?

Sub-index	Content and weight
Access (35 per cent)	Reach of banking services, such as bank branches, banking correspondents, ATMs and number of accounts, and access to insurance and pension
Usage (45 per cent)	How often services are used, such as deposits, credit, digital payments, insurance and pension products and the number of transactions
Quality (20 per cent)	Financial literacy, consumer protection and inequalities and deficiencies in service
Indicators	The index is built from about 97 indicators across the three sub-indices, as reported
Base year	The FI-Index is a composite index constructed without a base year, so the value for each year reflects cumulative progress and can be compared directly across years
Coverage	It captures banking, investments, insurance, postal and pension services in one number, and the RBI says it was built in consultation with the government and sectoral regulators
Frequency	Published annually, in July, for the year ended March

What Do the Values Show?

March 2021: 53.9, the first published value
March 2022: 56.4, as reported
March 2023: 60.1, as reported
March 2024: 64.2
March 2025: 67.0, a rise of about 4.3 per cent, driven by the Usage and Quality dimensions, released on 22 July 2025
March 2026: 70.0, up from 67.0, driven mainly by Usage, with every sub-index improving, as reported from the RBI release of 16 July 2026
Reading: The rise shows deeper use of digital payments, bank accounts and insurance. Because Usage has the largest weight, growth in transactions lifts the score
Verification: Sub-index values for each year should be checked against the RBI press release

What Else Should You Remember?

Full form and purpose: The Financial Inclusion Index is referred to as the FI-Index and it covers banking, investments, insurance, postal services and the pension sector in one measure
Policy base: The National Strategy for Financial Inclusion 2019-24 set out goals, and the RBI has worked on a new strategy after it
Pradhan Mantri Jan Dhan Yojana: Launched in August 2014 to give every household a bank account. Its account numbers lifted the access sub-index
Digital payments: Unified Payments Interface and other systems of the National Payments Corporation of India have raised usage
Financial literacy: The quality sub-index includes financial literacy and grievance measures, and the RBI runs a centre for financial literacy programme
Link to microfinance: Small borrowers rely on microfinance institutions, as in Y.H. Malegam Committee on Microfinance Institutions and NBFC Regulation
Link to rural livelihood work: Self-help groups are linked to banks under the livelihood mission, as in Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM)
Challenges: Dormant accounts, low credit access for women and small businesses, digital divide and mis-selling
Other RBI inclusion measures: The RBI also tracks banking outlets in villages, with branches, banking correspondents and ultra-small branches, and the Digital Payments Index, which gauges adoption of digital payments in the country
Why usage matters: A large number of accounts in the early Jan Dhan years were inactive, so the weight on usage pushes policy toward regular transactions, credit and insurance rather than only opening accounts
Similar indices: The World Bank Global Findex measures account ownership across countries every three years
Common mistakes: Saying SEBI or NITI Aayog publishes the index, or giving weights that do not sum to 100

Why Does It Matter for the Exam?

Publisher: Reserve Bank of India
Weights: 35, 45 and 20 for Access, Usage and Quality
Values: 53.9 in 2021, 67.0 in 2025 and 70.0 in 2026
Scale: 0 to 100
Common errors: Saying Quality has the highest weight

As an analytical point, opening an account is only the first step, and real inclusion means regular use of safe and fair financial services. Literacy, grievance redress and low-cost credit decide whether the index translates into better lives.

Why Is This Topic Important?

Weights Common numerical question
Values Latest trend
Inclusion GS Paper 3 theme

What Came Next?

The next topic covers the SEBI business sustainability reporting framework. Next topic: Business Responsibility and Sustainability Reporting (BRSR) Framework (SEBI).

Key People and Terms

FI-Index Financial Inclusion Index
Access Reach of services
Usage Use of services
Quality Literacy and protection
UPI Unified Payments Interface
Dormant account Account with no activity

Exam Corner

Points to Remember

Publisher: RBI, annual in July.
Weights: 35, 45, 20.
First: 53.9; 2025: 67.0; 2026: 70.0.
Scale 0 to 100.
Usage has the largest weight.

Do Not Confuse With

FI-Index and Global Findex RBI national index versus World Bank global survey
Access and Usage Reach versus actual use
Jan Dhan accounts and FI-Index A scheme versus a measure

Memory Hook

Thirty-five access, forty-five usage, twenty quality: fifty-four to seventy.

Mains Angle

Mains questions ask about financial inclusion. These points give a balanced frame.

Gains Accounts and digital payments
Gaps Dormancy and credit
Way Literacy and grievance redress

A Question You May Face

An original practice question, not a past paper question.

“Examine the progress of financial inclusion in India using the RBI Financial Inclusion Index and discuss the remaining gaps.”

How to Answer

Data 53.9 to 70.0.
Driver Usage and digital payments.
Gap Dormancy, credit.
Way Literacy and redress.

GS Relevance

Prelims: sub-indices, weights, publisher, latest values. GS Paper 3: banking, financial inclusion, inclusive growth. GS Paper 2: government policy for the poor.

Frequently Asked Questions

What is the Financial Inclusion Index?

The Financial Inclusion Index is a composite index of the Reserve Bank of India that measures financial inclusion in India on a scale of 0 to 100. It has three sub-indices, Access, Usage and Quality, with weights of 35, 45 and 20 per cent, and it was first published in August 2021.

Who publishes the FI-Index?

The Reserve Bank of India publishes the FI-Index annually, usually in July, for the year ended March. It is not published by SEBI, NITI Aayog or the Ministry of Finance, although it uses data from banks, the payment system, insurance and pension bodies and the postal system.

What is India's latest FI-Index value?

The RBI reported the FI-Index at 70.0 for March 2026, up from 67.0 for March 2025 and 64.2 for March 2024, as reported from the RBI release of 16 July 2026. All sub-indices improved, with the rise driven mainly by the Usage dimension.

What are the weights of the FI-Index sub-indices?

Access carries 35 per cent, Usage 45 per cent and Quality 20 per cent. Usage has the largest weight because the index seeks to measure how people actually use financial services and not only whether they have an account. Quality covers literacy and consumer protection.

When was the FI-Index launched and what was its first value?

The RBI launched the FI-Index in August 2021 with a value of 53.9 for the year ended March 2021. The index has since risen each year, reaching 67.0 in March 2025 and 70.0 in March 2026, which shows deeper use of bank accounts, digital payments and insurance.

PYQ Practice — Statement Analysis

1 The Financial Inclusion Index is published by SEBI.

False

It is published by the RBI.

2 The Usage sub-index has the largest weight in the FI-Index.

True

It carries 45 per cent.

3 The FI-Index was first published in 2021.