RBI’s Financial Inclusion Index Rises 4.3% to 67 in FY 25.
Banking & Finance
In July 2025, the Reserve Bank of India (RBI) reported that its composite Financial Inclusion Index (FI‑Index) increased by 4.3% in FY 24–25, rising to 67—up from 64.2 in March 2024—with notable improvements across Access, Usage, and Quality sub-indices, driven by deeper service usage and literacy efforts.
- The FI‑Index, a composite of Access (35%), Usage (45%), and Quality (20%), measures inclusion across banking, insurance, investments, postal services, and pensions. Each of the sub-indices recorded growth, indicating enhanced service reach, improved usage frequency, and better consumer experience.
- RBI highlighted that the primary drivers of the FI‑Index increase were the Usage and Quality dimensions—reflecting more frequent use of financial products and improved service quality, supported by greater financial literacy and consumer protection initiatives.
- Created in consultation with government and sector regulators, the FI‑Index was launched in 2021. It uses 97 indicators without a base year to capture inclusion holistically. From a baseline of 43.4 in FY 17, the index rose to 53.9 in FY 21, then to 64.2 in FY 24, and now to 67 in FY 25.
Main Point :- (i) FY 24–25 saw a 34.8% increase in digital payments volume, with UPI accounting for 48.5% of global real-time payments. This digital acceleration underpinned usage growth and financial access, particularly in underserved areas.
(ii) The rise reflects coordinated efforts under the National Strategy for Financial Inclusion (NSFI 2019‑24) and the National Strategy for Financial Education (NSFE 2020‑25), which included scaling up Centres for Financial Literacy, national quiz drives, and campaigns using mascots like “Junior Money”.
(iii) RBI emphasised the need for further progress via last-mile outreach, digital infrastructure strengthening, tailored products for vulnerable groups, and improved grievance redressal—working towards a more inclusive and empowered financial ecosystem.
About RBI
Governor : Sanjay Malhotra
Headquarter : Mumbai
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