However, putting in those hard yards must be complemented by a dependable yardstick to quantify progress on financial inclusion. India’s first financial inclusion index was launched in 2013 with the objective of becoming that crucial gauge and policy input. It is based on four dimensions—branch penetration, deposit penetration, credit penetration and insurance penetration. The upshot from the scores is that financial inclusion can spread faster if there is sharper focus on enhancing branch and credit penetration beyond south India. There is still a long way to go before India reaches acceptable levels of financial inclusion, but there’s little to complain about the policy approach today.

Source: Mint February 28, 2018 18:00 UTC