• Manisha Singh Asst. Prof., School of Business, Galgotias University.india.


financial inclusion, banking, jan dhan yojana, micro-finance institutions, JEL Classification: G21, G22, G38, G4, O16


This paper attempts to understand CRISIL-Inclusix-the index to measure financial inclusion in India. On June 25, 2013, CRISIL, India's leading credit rating and Research Company launched an index to measure the status of financial inclusion in India. Inclusix was released by the Finance Minister of India, P. Chidambaram at New Delhi. CRISIL Inclusix is a one-of-its-kind tool to measure the extent of inclusion in India, in each of the 700 plus districts. CRISIL Inclusix is a relative index on a scale of 0 to 100, and combines three critical parameters of basic banking services— branch penetration, deposit penetration, and credit penetration—into one metric. It presents both national and regional analysis of financial inclusion published, for the first time as also the first analysis of trends in inclusion over a three-year timeframe. This paper attempts to understand the methodology used in compiling this index and its success in measuring Financial Inclusion-an avowed objective of the Jan Dhan Yojana announced in 2014.Aimed at securing financial inclusion, this is one of the flagship schemes of the Modi Government and was launched with much fanfare. As on Feb 14, 2018, 31 crore deposit accounts have been opened under Pradhan Mantri Jan Dhan Yojana . Gaining in importance since 2000s, Financial inclusion is a result of identifying poverty with financial exclusion. This index is an important and valuable addition to our understanding of financial inclusion as many studies have pointed out that lack of financial inclusion results in a loss of 1% to the country’s GDP. In the Indian context, the term ‘financial inclusion’ was used for the first time in April 2005 in the Annual Policy Statement presented by RBI governor, Y V Reddy.


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CRISIL (2013), “Inclusix Financial Inclusion Index”, June

Planning Commission (2009), “Report on Financial Sector Reforms” (Chairman: Dr. Raghuram G. Rajan).

"Statement by Dr. Y. Venugopal Reddy, Governor, Reserve Bank of India on the Mid-term Review of Annual Policy for the year 2005-06", Reserve Bank of India, October 25, 2005.

"P Chidambaram launches Crisil Inclusix", DNA India, June 25, 2013.

RBI (2005), “Report on Rural Credit and micro finance” (Chairman: H.R. Khan).