Financial inclusion index in the works
The Reserve Bank of India is in the process of publishing a financial inclusion index shortly, even as the country has improved its performance on the inclusion part, Governor Shaktikanta Das said on Thursday.
The Reserve Bank of India (RBI) is in the process of publishing a financial inclusion index shortly, even as the country has improved its performance on the inclusion part, Governor Shaktikanta Das said on Thursday.
“The financial inclusion index will have parameters across the three dimensions of financial inclusion viz., Access, Usage and Quality. Work on FI Index is underway and the Index will be published shortly by the RBI,” Das said in a keynote address at a financial inclusion summit.
Financial inclusion will continue to be the policy priority for the central bank, to make the post-pandemic recovery more inclusive and sustainable, Das said.
In this context, the recent guidelines on the microfinance sector will help limit over indebtedness of borrowers and would also help rationalise interest rates and enhance transparency of loan pricing.
Financial literacy is becoming part of the curriculum of school children, with 15 states so far making it as part of the syllabus.
“Lessons from the past and experi- ences gained during the Covid-19 pandemic clearly indicate that financial inclusion and inclusive growth reinforce financial stability,” the RBI governor said.
“Greater financial literacy and education, together with sound consumer protection mechanisms, will ensure that people at the bottom of the pyramid are empowered to take informed financial decisions. This will also enable banks, NBFCS, MFIS, etc. to enhance their customer base and products and diversify their balance sheet.” Financial inclusion would lead to sustainable future, and there is a need for “accelerated universal reach of bank accounts along with access to financial products relating to credit, investment, insurance and pension,” the governor said, adding that grievance redressal mechanism has to be improved too.