UPSC Prelims 2026 Question:

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)?

Answer: 3 

Explanation:

Financial Inclusion means ensuring that individuals and businesses have access to affordable and useful financial services such as bank accounts, credit, insurance, and digital payments, in a safe and sustainable manner. 

• To measure the level of financial inclusion in India, the Reserve Bank of India (RBI) introduced the Financial Inclusion Index (FI-Index) in 2021. This index provides a clear picture of how widely financial services are available and how effectively they are being used across the country. 

• The FI-Index is built on three main sub  indices, each with a specific weight: 
  • Access (35%): This measures the availability and reach of financial services. It includes indicators such as the number of bank branches, ATMs, banking correspondents, and basic savings bank accounts.
  • Usage (45%): This reflects how actively people are using financial services, such as credit accounts, deposit accounts, insurance products, and digital payment systems. It has the highest weight (45%), as actual usage shows the depth of financial inclusion. 
  • Quality (20%): This looks at the efficiency and reliability of financial services, including financial literacy, grievance redressal systems, and customer protection mechanisms. 

Therefore, option (3) is the correct answer.