Updated By: LatestGKGS Desk
Finance Minister launches Financial Inclusion Index, Jan Dhan Darshak app
Arun Jaitley launched an annual index to rate financial services & quality
The Union Minister of Finance and Corporate Affairs, Arun Jaitley originated the Financial Inclusion Index (FII) in New Delhi on September 24, 2018. The index was launched after the Finance Minister’s annual special report conference with the CEOs of public sector banks.
The annual index will be cleared by the Department of Financial Services (DFS) under the Ministry of Finance by the end of this year and it would rate states on their review on last-mile banking services availability.
The index will be a measure of access and usage of a basket of formal financial products and services that includes savings, remittances, credit, insurance and pension products.
The index will include the following three measurement dimensions:(i) Access to financial services (ii) Usage of financial services (iii) Quality
The original composite index gives a photograph of the level of financial composition that would guide the macro policy prospect.
The various parts of the index will benefit measure financial services for use of domestic policymaking. The index can also be used directly as a composite measure in growth indicators.
Further, the index enables fulfillment of G20 Financial Inclusion Indicators specifications. It will also promote researchers to study the influence of economic composition and other macroeconomic variables.
