&w=3840&q=100)
RBI's financial inclusion index hits 67 in March 2025, reflecting growth
'Improvement in the financial inclusion index in FY25 is contributed by usage and quality dimensions, reflecting the deepening of financial inclusion, and sustained financial literacy initiatives,' RBI said in its statement.
'The steady rise in the Financial Inclusion Index to 67 is a clear indication that India is moving beyond access to real usage and trust in financial services. It reflects the success of ecosystem-wide efforts to bring underserved communities into the formal financial fold, not just digitally, but meaningfully,' said Deepak Verma, MD & CEO, FINDI.
The FI Index is a comprehensive index incorporating details of banking, investments, insurance, postal, as well as the pension sector, in consultation with the government and respective sectoral regulators.
The index captures information on various aspects of financial inclusion in a single value ranging between 0 and 100, where 0 represents complete financial exclusion and 100 indicates full financial inclusion.
The FI Index comprises three broad parameters: Access, with a 35 per cent weightage; Usage, with a 45 per cent weightage; and Quality, with a 20 per cent weightage.
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Economic Times
34 minutes ago
- Economic Times
Former RBI Governor Raghuram Rajan isn't impressed by India's growth story; Here's what he thinks we're getting wrong
Agencies Former RBI Guv Raghuram Rajan "There is no room for another China." That's Raghuram Rajan's blunt assessment of India's industrial aspirations. In a recent interview with Frontline, the former RBI Governor made it clear that the world has changed. The conditions that allowed China to rise through mass manufacturing simply no longer labour is not the advantage it once was. Automation has moved into even the most basic factory roles. "What companies need now is people who can tend the machines, repair the machines—not those who do the manual work machines have replaced," Rajan said. In short, the manufacturing jobs India is chasing might already be to that the rise of protectionism. Countries are building domestic industries, shutting doors that were once open to global supply chains. "Everybody wants their own little manufacturing industry," Rajan said. India cannot expect to export its way to prosperity in this has been betting heavily on manufacturing as a way to absorb its young workforce. But Rajan cautions that the numbers just don't add up."We cannot expect that number of jobs in manufacturing," he said. Tariffs have gone up, production-linked incentives are scattered, and policies contradict themselves. For example, tariffs are applied not only to final goods but also to the intermediate goods needed to make them. "Then people complain, 'Oh, I can't make this effectively here because the intermediate goods are tariffed.'" This isn't just a policy hiccup. It signals a lack of strategic clarity. And without that, Rajan believes, manufacturing will remain a political slogan, not a real solution."Get a job wherever, create a job wherever you can." That, Rajan says, should be the guiding already commands a 4.5 percent share of global service exports. That includes everything from high-end software to back-end support. While these sectors can't employ everyone, they signal a clear competitive importantly, Rajan sees untapped potential in domestic, mid-skill service jobs—plumbers, drivers, technicians, healthcare workers. These jobs may not make headlines, but they could lift millions. All it takes is better skilling and targeted support. He also dismissed the idea that you need a strong manufacturing base to build high-end service sectors. "This canard, which is floated sometimes, that you need the manufacturing in order to do the associated services, is not necessarily true," Rajan said. Citing companies like Nvidia and Apple, he pointed out that design and innovation can flourish even when production is outsourced. The days of the free trade consensus are over. Rajan traced America's shift back to Trump and his economic advisers, who viewed trade deficits as signs of weakness. That thinking has stuck around. "Is he undermining the basis of US prosperity and its dominance of the post-Second World War economic system with this view? I think we are turning the tables on what worked," he said. Today, protectionist tariffs are not a blip. They are part of a permanent, structural shift in global politics. For India, it means the space to plug into global supply chains has shrunk. Trying to follow China's route now is like running for a train that already left the is growing at 6 to 6.5 percent a year. On paper, that sounds solid. But as Rajan points out, this pace is not enough to lift per capita income fast enough to avoid a demographic squeeze."We are the fastest-growing country in the G20," he said. "But also the poorest on a per capita basis. That has to change."Time is running out. India's young population won't stay young forever. If opportunities don't arrive soon, the demographic dividend could turn into a has long been vocal about the need for decentralisation. Giving more power to local governments, he argues, improves both accountability and outcomes."The village community can see when the funds transmitted from the State government or Central government are misspent or line the pockets of the village elite," he said. "State after state should give more power to the municipalities, to the villages. That will both enhance commitment to democracy but also allow for better governance."He contrasted this with the Centre's tendency to prioritise flashy schemes without follow-through. "We announce a campaign, but never actually determine whether it's working. It becomes an announcement rather than effective rollout."Rajan criticised the growing trend of suppressing inconvenient data or changing methodologies to suit political needs. That, he warned, is a recipe for bad policy."Suppressing data eventually hurts the government itself," he said. "Your critics are sometimes your best friends because they will identify what's going wrong and then you can make the changes and then get credit for it."Honest, reliable data is not just for economists. It is the foundation of public is spending big on infrastructure. But Rajan warns that not all investment is equal."Every small town wants a metro," he said. "That's overbuilding, and those will be white elephants."What matters more, in his view, is building up capabilities. This means investing in schools, research labs, skilling programmes, and targeted industrial policy. "We have to have a few national labs where you've got state-of-the-art equipment where you can actually be competitive."The message Rajan is sending is clear: Stop chasing China. That moment is gone. India needs a strategy rooted in its own strengths, challenges and people. That means backing services, not slogans. Empowering local governments, not hoarding power at the top. And investing in people, not just not glamorous. But it might just work.
Mint
2 hours ago
- Mint
Vijay L Bhambwani's Ticker: It's time for bulls to make their presence felt
Ticker is a weekly newsletter by Vijay L Bhambwani. Subscribe to Mint's newsletters to get them directly in your email inbox. Dear Reader, Last week, I wrote about the daunting prospect of overhead supply (selling by bulls trapped at higher levels) weighing on bulls. That hypothesis was validated by the markets as indices slipped in the latter half of the week. Triggers for the overhead supply remain unchanged. Proposed changes in the US and UK, which may reduce the flow of money to pension funds, are worrying bulls. It should be remembered that pension funds manage huge sums as long-term assets under management (AUM), which makes them the biggest institutional investors in equity markets. If AUMs fall in the pension fund industry, support to equity markets may be impacted as well. The delay in tying up trade deals and fears of slowing consumer spending worldwide are also weighing on sentiments. This is an expiry week, and therefore, traders are likely to be preoccupied with rolling over or squaring up (closing) their trades. Volatility is usually higher in expiry weeks. The positive trigger that emerged is that traded volumes perked up in the derivatives segment. This was partly due to Jane Street being allowed to resume operations in India. Aggressive follow-up buying will be crucial to revive sentiments. Do note the Nifty-50 has slipped for four weeks in a row, and bulls are running out of time. If they are to get a grip on sentiments, they must make their presence felt before the 24,800 support I have been mentioning for a fortnight is violated. In terms of sectoral action, public sector undertakings will continue to attract traders due to the emotional and financial stakes being relatively high in these stocks. Banking stocks within the PSU space will be particularly volatile. As we approach the Reserve Bank of India's announcement on interest rates on 7 August, traders are likely to ramp up their exposure on these stocks. Larger two-way moves are expected on these stocks. Metal prices may witness routine month-end short-covering, which can perk up metal and mining stock prices this week. Upsides will remain capped, however. Oil and gas-related stocks will also witness hectic trades, as energy prices are slipping on global commodity exchanges. Bullion remains bullish for the patient long-term investor, who is willing to look past calendar 2025. Oil and gas prices are likely to stay subdued, and rallies, if any, are likely to run into selling pressure. I maintain my long-standing view that energy markets are well-supplied and shortages exist only in market narratives. I recommend my readers traders light with tail risk (hacienda) hedges in place to avoid any shocks to capital. Being an expiry week makes it even more pressing to prioritize capital preservation over trading profits. A tutorial video on hacienda hedges is here - Rear View Mirror Let us assess what happened last week so we can guesstimate what to expect in the coming week. The fall was led by the broad-based Nifty, whereas the Bank Nifty logged gains. Being heavily weighted in the Nifty index, banking stocks cushioned the declines in the Nifty which, otherwise, may have slipped significantly. A weak dollar aided sentiments in emerging markets including India. Safe-haven buying eased in bullion, which otherwise remained firm. Oil and gas fell sharply as demand growth was feared to contract in the near future. The rupee eased versus a weakening dollar, which underscores the nervousness in the forex peg. Indian forex reserves slipped marginally, which weighed on sentiments. The Indian 10-year sovereign bond yields rose which dragged banking stocks since banks are the biggest investors in bonds. NSE market capitalization slipped 1.54%, which indicates broad-based selling. Market wide position limits (MWPL) rose routinely ahead of the expiry. US headline indices rose, providing tailwinds to our markets, which could have otherwise slipped deeper. Retail Risk Appetite – I use a simple yet highly accurate yardstick for measuring the conviction levels of retail traders – where are they deploying money. I measure what percentage of the turnover was contributed by the lower and higher risk instruments. If they trade more of futures which require sizable capital, their risk appetite is higher. Within the futures space, index futures are less volatile compared to stock futures. A higher footprint in stock futures shows higher aggression levels. Ditto for stock and index options. Last week, this is what their footprint looked like (the numbers are average of all trading days of the week) – Turnover contribution in the higher-risk, capital-intensive futures segment was marginally higher. Much of it can be attributed to the rollover of trades from the July to August series. This results in dual turnover being logged, which is routine. In the relatively safer options segment, turnover rose in the stock options segment which is marginally more riskier than index options. Some of it can be rollover trades from July to August series. Overall. risk appetite remained subdued. Matryoshka Analysis Let us peel layer after layer of statistical data to arrive at the core message of the first chart I share is the NSE advance-decline ratio. After the price itself, this indicator is the fastest (leading) indicator of which way the winds are blowing. This simple yet accurate indicator computes the ratio of the number of rising stocks compared to falling stocks. As long as gaining stocks outnumber the losers, bulls are dominant. This metric is a gauge of the risk appetite of 'one marshmallow' traders. These are pure intra-day traders. The Nifty clocked smaller losses last week, but the advance-decline ratio slipped from 1.11 in the prior week to 0.67 last week. That means there were 67 gaining stocks for every 100 losing stocks. Intra-day buying conviction was lower. This ratio must stay above 1.0 sustainably all week for bulls to regain their lost initiative. A tutorial video on the marshmallow theory in trading is here - The second chart I share is the market wide position limits (MWPL). This measures the amount of exposure utilized by traders in the derivatives (F&O) space as a component of the total exposure allowed by the regulator. This metric is a gauge of the risk appetite of 'two marshmallow' traders. These are deep-pocketed, high-conviction traders who roll over their trades to the next session/s. The MWPL rose routinely ahead of the expiry week, but the peak was lower than the prior month's peak. This week being an expiry one, this reading can only fall this week. Swing traders are showing signs of hesitation. If markets rally strongly in the August derivatives series, bulls must ramp up their exposure levels to make their presence felt. Post-expiry routine decline should be watched keenly. If the low is higher than the 26.20 level of last month, it would imply some optimism.A dedicated tutorial video on how to interpret MWPL data in more ways than one is available here - The third chart I share is my in-house indicator 'impetus.' It measures the force in any price move. Last week, both indices fell with falling impetus readings. That tells us the fall was more of a gradual slide triggered by poor buying support rather than aggressive selling. Ideally, the price and impetus readings should rise in tandem to confirm a sustainable upthrust. The final chart I share is my in-house indicator 'LWTD.' It computes lift, weight, thrust and drag encountered by any security. These are four forces that any powered aircraft faces during flight; so, applying it to traded securities helps a trader estimate prevalent sentiments. Last week, the Nifty logged smaller declines, but the LWTD reading fell sharply to its lowest after the week ended 18 April, 2025. That implies lower fresh buying support for the Nifty this week. While short-covering can occur, it can cushion declines. For a fresh rally, aggressive follow-up buying will be required. A tutorial video on interpreting the LWTD indicator is here - Nifty's Verdict Last week, we saw a red candle on the weekly chart. This is the fourth bearish candle in a row. It was an inverted hammer candle. That indicates an abortive attempt by bulls as they tried to push prices higher but failed, and the index slid back into negative territory. The price remains above the 25-week average, which is a proxy for the six-month holding cost of an average retail investor. The medium-term outlook remains positive for now, as long as the price stays above this average. Last week, I advocated watching the 24,800 level, which bulls needed to defend in case of a decline. Note how the weekly low was 24,806. This threshold remains as the immediate support area to watch out for. The longer the index stays below this threshold, the more difficulty bulls may encounter on the upside. That is because overhead supply (selling from bulls trapped at higher levels) can limit rallies in the near term. On the flipside, the nearest resistance is at the 25,250 level, which must be overcome if the Nifty is to have a reasonable chance to rally. Your Call to Action – watch the 24,800 level as a near-term support. Only a break-out above the 25,250 level raises the possibility of a short-term rally. Last week, I estimated ranges between 57,500 – 55,050 and 25,525 – 24,400 on the Bank Nifty and Nifty respectively. Both indices traded within their specified resistance levels. This week, I estimate ranges between 57,725 – 55,325 and 25,375 – 24,300 on the Bank Nifty and Nifty respectively. Trade light with strict stop losses. Avoid trading counters with spreads wider than eight ticks. Have a profitable week. Vijay L. Bhambwani Vijay is the CEO a proprietary trading firm. He tweets at @vijaybhambwani
The Hindu
3 hours ago
- The Hindu
Karur Vysya Bank launches cybersecurity awareness initiative with a commitment to responsible banking
Karur Vysya Bank (KVB), one of the country's oldest banks, has launched a cybersecurity awareness initiative aimed at promoting digital safety and responsible banking among the people. J. Swaminathan, Deputy Governor, Reserve Bank of India, remotely flagged off the initiative on the occasion of KVB's 109th Founder's Day in Karur on Saturday. A large number of customers, members of the Board of Directors, and employees of the bank were present. The initiative will reach diverse sections of society through mass media campaigns, offline and branch activations, and specially curated workshops across schools, colleges, workplaces, residential communities, and senior citizen forums — creating awareness across all age groups, from students and working professionals to home makers and retirees. Ramesh Babu, Managing Director and Chief Executive Officer, Karur Vysya Bank, said it was founded with a simple yet profound purpose to serve with integrity, prudence, and care. The Founder's Day was not only to honour the banking institution's past but also reflected its commitment to a safe digital future. 'Through our comprehensive cybersecurity awareness programme, we aim to educate and empower every section of society to stay vigilant and secure in today's digital world. As we look ahead, we remain committed to growing responsibly while upholding the same integrity and trust that have defined KVB since its inception,' Mr. Ramesh Babu said. Mr. Swaminathan said the Founder's Day was a celebration of vision, resolve, and quiet determination — a tribute to those who chose to build a lasting institution in the face of uncertainty. Lasting success was built not on chance or scale, but on careful thought and considered action. Resources must be used with discipline. Tools must be model and well-governed. The KVB in the 109 years since its founding had honoured those principles in many ways. But the road ahead would be more complex, more competitive and more demanding. The institutions that would lead in this environment were not those that move fast, but those that move with clarity, with courage, and with conviction, Mr. Swaminathan added. The Founder's Day celebration featured the unveiling of a specially curated 'brand bran', capturing Karur Vysya Bank's journey over the past 109 years.
