BANKING AFFAIRS

Detailed explanation-1: -It is a comprehensive index incorporating details of banking, investments, insurance, postal as well as the pension sector in consultation with the government and respective sectoral regulators. It was developed by the RBI in 2021, without any ‘base year’, and is published in July every year.

Detailed explanation-2: -The concept of financial inclusion was first introduced in India in 2005 by the Reserve Bank of India. The objectives of financial inclusion are to provide the following: A basic no-frills banking account for making and receiving payments. Saving products (including investment and pension)

Detailed explanation-3: -Press Releases. The Reserve Bank of India had constructed a composite Financial Inclusion Index (FI-Index) to capture the extent of financial inclusion across the country, in consultation with the concerned stakeholders including the Government and published it in August 2021 for the FY ending March 2021.

Detailed explanation-4: -The index ranges between 0 and 100, with 0 meaning complete financial exclusion and 100 meaning complete financial inclusion. RBI tracks 97 indicators and divides them into three sub-indices – access, usage and equality – with weights of 35, 45, and 20, respectively.