RBI Governor Shaktikanta Das says will bring financial inclusion index soon

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,” Governor Das said in his 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 experiences gained during the Covid-19 pandemic clearly indicate that financial inclusion and inclusive growth reinforce financial stability," the RBI governor added.

“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 was 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 grievance redressal mechanism has to be improved too.  

As on March 2021, banks have achieved a digital coverage of 95.9 per cent of individuals, which means that accounts have been covered by at least one digital means of payment. 

The RBI’s efforts towards financial incusion have helped in enabling the government to provide seamless and timely financial support to vulnerable sections through direct benefit transfers (DBT), he said.

Technology has made financial inclusion much more effective. The Jan Dhan, Aadhaar and Mobile (JAM) ecosystem has brought about a major shift in the universe of financial inclusion. Aadhaar has facilitated financial inclusion through innovative digital platforms.  

As on date there were about 425 million Pradhan Mantri Jan Dhan Yojana (PMJDY) account holders with more than 55 per cent account holders being women. Rs 5.53 trillion was transferred digitally across 319 government schemes spread over 54 ministries during 2020-21 under direct benefit scheme, the governor said.  

“The NACH-Aadhaar Payments Bridge (APB) System and PMJDY together have been instrumental in enabling an effective usage of available banking facilities, which came to the fore during the pandemic, with cash benefits under Pradhan Mantri Garib Kalyan Yojana being disbursed to these accounts,” Governor Das said.