Arun Jaitley, the Union Minister of Finance and Corporate Affairs, on Tuesday, started three initiatives to take banking to the last mile comprising an FII, geographical mapping of banking services and hassle-free online loans for MSMEs valuing up to Rs 10 million in New Delhi. He launched these three initiatives including FII after the Annual Performance Review Meeting with CEOs of Public Sector Banks(PSBs).
Jaitley said the Financial Inclusion Index would help to create an element of competition among states with each of them eying for last mile connectivity in banking.
Financial Inclusion Index(FII)- The annual FII will be released by the Department of Financial Services(DFS), Ministry of Finance. The FII will be a measure of access and usage of a basket of formal financial products and services that includes remittances, credit, savings, insurance, and pension products.
The FII has mainly three measurement dimensions
(1) Access to financial services
(2) Usage of financial services and
These three will serve as the single composite index and hence give the snapshot of the level of financial inclusion which will guide the Macro Policy perspective.
Key Features Of Financial Inclusion Index
The numerous components of FII will help to measure financial services for the use of internal policy making. In development indicators, FII can be used as a composite measure. It will also enable to fulfill G20 Financial Inclusion Indicators requirements. It will also facilitate researchers to study the impact of financial inclusion & other macroeconomic variables.
- Location: India
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