Government launches Financial Inclusion Index
Union Minister of Finance and Corporate Affairs Arun Jaitley launched Financial Inclusion Index in New Delhi. It was launched after his Annual Performance Review Meeting with CEOs of Public Sector Banks (PSBs).
Financial Inclusion Index (FII)
The annual FII will be released by Department of Financial Services (DFS), Ministry of Finance. It will be measure of access and usage of basket of formal financial products and services that includes savings, remittances, credit, insurance and pension products.
The index has three measurement dimensions (i) Access to financial services (ii) Usage of financial services and (3) Quality. It will serve as single composite index that will give snap shot of level of financial inclusion which will guide Macro Policy perspective.
Significance of index: Its various components will help to measure financial services for use of internal policy making. It can be used directly as composite measure in development indicators. It will also enable to fulfil G20 Financial Inclusion Indicators requirements. It will also facilitate researchers to study the impact of financial inclusion and other macro-economic variables.