• The Financial Inclusion Index (FI Index), developed by the Reserve Bank of India (RBI), tracks the extent of financial inclusion in India by considering various parameters such as access, usage, quality, and infrastructure.
• As per the March 2024 report, the usage parameter saw the maximum increase in the FI Index. This increase reflects greater adoption and usage of financial products and services by individuals, including mobile banking, digital payments, and access to credit facilities.
• The usage parameter covers the actual engagement of the population with financial services, including the frequency and volume of transactions carried out through various banking and payment channels. The rise in usage is indicative of the growing awareness and trust in digital financial services, which has been particularly driven by government initiatives like Digital India and Jan Dhan Yojana.
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