Financial inclusion index should disclose all parameters: Sumita Kale

Sumita Kale, a prominent economist, has called for enhanced transparency in the Reserve Bank of India's Financial Inclusion Index. She emphasizes the need for full disclosure of all parameters that contribute to the index, arguing that a comprehensive understanding is essential for stakeholders aiming to improve financial inclusion across the nation. Kale advocates for the inclusion of more granular data, which would allow for a nuanced analysis of financial inclusion efforts. According to her, merely tracking access is insufficient; the index should also focus on the usage and quality of financial services. This shift would help policymakers identify gaps and implement targeted strategies to address them. Additionally, Kale highlights the importance of focusing on household financial behavior to ensure that services meet the needs of all segments of society. By adopting these changes, the Financial Inclusion Index could become a more effective tool in fostering economic growth and bridging the financial divide in India.

— Authored by Next24 Live