Shri Arun Jaitley launches the Financial Inclusion Index

The Union Minister of Finance and Corporate Affairs, Shri Arun Jaitley launched the Financial Inclusion Index after his Annual Performance Review Meeting with CEOs of the Public Sector Banks in New Delhi today. Department of Financial Services (DFS), Ministry of Finance will release an Annual Financial Inclusion Index (FII) which will be a measure of access and usage of a basket of formal financial products and services that includes savings, remittances, credit, insurance and pension products. The index will have three measurement dimensions; (i) Access to financial services (ii) Usage of financial services and (3) Quality.

Financial Inclusion Index:

Department of Financial Services (DFS), Ministry of Finance will release an Annual Financial Inclusion Index (FII). The single composite index gives a snapshot of the level of financial inclusion that would guide the Macro Policy perspective.

The index will be a measure of access and usage of a basket of formal financial products and services that includes savings, remittances, credit, insurance and pension products.

The index will have three measurement dimensions:

  • Access to financial services.
  • Usage of financial services.

The various components of the index will help to measure financial services for use of internal policy making.

Financial Inclusion Index can be used directly as a composite measure in development indicators.

It enables fulfillment of G20 Financial Inclusion Indicators requirements.

It will also facilitate researchers to study the impact of financial inclusion and other macroeconomic variables.

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