Question
GSMediumPrelims 2026Economy

Which one of the following correctly represents the three key sub-indices of the Financial Inclusion Index (FI-Index) of the Reserve Bank of India (RBI)?

Explanation

The Reserve Bank of India (RBI) introduced the composite Financial Inclusion Index (FI-Index) in August 2021 to comprehensively measure the extent of financial inclusion across the country. The index incorporates data from the banking, investments, insurance, postal, and pension sectors.

The FI-Index is constructed using three broad parameters (sub-indices) with distinct weightages:

  1. Access (35% weightage): Measures the supply-side availability of financial services, including physical and digital infrastructure like bank branches, ATMs, and PoS terminals.
  2. Usage (45% weightage): Reflects the demand side and actual utilization of financial services, such as savings, investments, digital transactions (e.g., UPI), insurance, and credit.
  3. Quality (20% weightage): Captures the qualitative aspects of financial inclusion, including financial literacy, consumer protection, and inequalities or deficiencies in services.

Option A is Incorrect: While credit, insurance, and pension are sectors covered under the index, they are not the broad sub-indices used to structure the FI-Index.

Option B is Incorrect: GDP contribution is not a parameter for measuring financial inclusion. Financial literacy is a component under the Quality sub-index, not a standalone sub-index.

Option C is Correct: Access, Usage, and Quality are the exact three sub-indices of the FI-Index.

Option D is Incorrect: Affordability and Transparency are not the designated sub-indices, though they may conceptually relate to the Quality parameter.

Therefore, Option C is the correct answer.

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