Official Question UPSC 2026
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)?
Solution & Analysis
Answer: C
According to the Reserve Bank of India (RBI) Official FI-Index Methodology Document, the composite Financial Inclusion Index was introduced in August 2021 to comprehensively capture the extent of financial penetration across banking, insurance, postal, and pension sectors.
•The Three Pillars of the FI-Index:
•Access (35% Weightage): Evaluates supply-side infrastructure, including the physical and digital availability of bank branches, PoS terminals, and ATMs.
•Usage (45% Weightage): Measures the demand side, capturing the active utilization of financial services like savings, credit, insurance, and UPI transactions.
•Quality (20% Weightage): Assesses the qualitative aspects of financial inclusion, specifically focusing on financial literacy, consumer protection, and grievance redressal mechanisms.
Conclusion: While options A, B, and D list concepts related to finance (like GDP contribution or affordability), the RBI strictly defines the sub-indices as Access, Usage, and Quality. Thus, Option C is correct.