Why in the news
The RBI released the FY26 Financial Inclusion Index, and separately issued final rules on non-financial assets that lenders take over from defaulters.
FI-Index key facts
| Year | Index value |
|---|
| FY24 | 64.2 |
| FY25 | 67.0 |
| FY26 | 70.0 |
- All three sub-indices improved, with the Usage parameter leading, showing deeper inclusion.
- Started: August 2021, first published for the year ending March 2021, with government and regulator consultation.
- Scale: 0 means total exclusion and 100 means full inclusion; there is no base year, as each edition builds on the last.
- Built from: 97 indicators spanning the pension, postal, insurance, investment and banking sectors.
| Parameter | Weight |
|---|
| Access | 35% |
| Usage | 45% |
| Quality | 20% |
SNFA prudential norms
- SNFA (Specified Non-Financial Asset): an asset such as property taken over by a lender when a bad loan is settled.
- Applies from 1 October 2026, framed within the Resolution of Stressed Assets Directions, 2025.
- Banned: handing the asset back to the borrower, its promoters, related parties or their agents.
- Purpose: stop wilful defaulters from reclaiming assets cheaply, closing a moral-hazard gap.
Exam angle
- Highest weight: Usage (45%); indicators: 97; scale: 0-100.
- Issuer of both: RBI.