Revisiting of Measurement of Financial Inclusion of Rural Dominated States of India: Using Crisil Inclusix Methodology

The purpose of the paper is to measure the level of financial inclusion across rural-dominated states of India and to find the reasons for the low financial inclusion scores. The CRISIL Inclusix methodology was employed using secondary data for all dimensions of financial inclusion. All the dimensions of financial inclusion were calculated separately to create a financial inclusion index for each state separately. The financial inclusion index ranges from 0 to 1 after the normalisation process. As 0 represents no financial inclusion, and 1 represents complete financial inclusion. Himachal Pradesh obtained the maximum score of 94.2 and was put in the high category, while Meghalaya received the lowest score of 16.84 and was placed in the low category. The remaining selected states, Arunachal Pradesh, Jharkhand, Uttar Pradesh, and Chhattisgarh, obtained scores of 32.8, 26.76, 26.72, and 22.68, respectively, placing them in the low category.