micro level impact studies, appropriately designed periodic surveys would be a useful tool. surveys are also needed for assessing viability of delivery models, sustenance of initiatives, gauging the spread of financial literacy and measuring barriers to financial inclusion. a robust financial inclusion design depends on a multiplicity of parameters encompassing varied socio - economic backdrops and feasible financial service delivery mechanism that would vary from region to region. this is particularly so for a country like india, which is distinguished by its vastness of topographical, demographic as also socio - economic diversity. like any broad based financial system, financial inclusion measures and performance monitoring system require a rich body of performance data and analytics. many a time, country comparisons brought out by international bodies based on their dedicated database dwells on much aggregative data comparison which, when seen granularly, bespeaks a different story. this is very relevant in financial inclusion analytics, which requires new kinds of identifiable indicators based on the evolving needs of financial inclusion plan and program. concepts and definitional issues the fact that financial inclusion concepts have different meanings in different parlance has often led to difficulty in using a standard yardstick for benchmarking its policy parameters. the associated difficulties are that the targeted variables used for financial inclusion may differ from one country or organisation to another because of different institutional set up. inherent weaknesses in the linkages between the financial inclusion database and welfare parameters of the society add to the complexity. moreover, there are no agreed composite measures of financial inclusion which could facilitate comparisons across time and geography. therefore, in order to ensure consistency and accuracy in measurement of bis central bankers ’ speeches financial inclusion parameters, it is essential that the parameters concerned are objectively defined in the first stage of the measurement process. as a way forward, we need to assess financial behaviour and understand where the challenges and opportunities lie for the future. to do that, we need high - quality, multi - dimensional, comparable financial inclusion data based on internationally standardized terms and concepts. as such, the measurement needs also include analytics for correct interpretation of data and establishment of international benchmarks. various dimensions of data on financial inclusion there are several structural dimensions in the process of building up data on financial inclusion. these include : ( i ) measurement of the progress in financial inclusion initiatives by way of building up suitable indictors. such indicators must contain data on access to ( supply of ) and usage of ( demand for ) financial services as well as their coverage and penetration. measuring availability and

are faced by most countries globally bis central bankers ’ speeches and each country has to develop its own customized solutions drawing upon its own experiences and those of its peers across the globe. on the measurement challenges, first, it needs to be reckoned that financial inclusion concepts, policies, delivery models and implementation processes are still evolving. it is, therefore, essential that the policy for achieving total financial inclusion also keeps changing to adapt to the needs of the environment. this poses challenges for measurement of various financial inclusion initiatives as also their aggregation across activities, institutions, regions and so on. statistical analysis of performance of financial inclusion initiatives and development of benchmarking standards can be quite complex. second, while existing initiatives in measuring financial inclusion are commendable, there is a need for greater focus on the micro and distributional dimensions. third, we should explore the need to change the focus of present information systems of banking business from traditional accounting model to customer centric business model. this would call for expanding the scope of the currently used measures of financial inclusion. i would end by once again thanking the organizers for inviting me to this forum which, i am sure, will generate valuable debate and insight and come up with practical solutions to the measurement challenges faced in the global movement towards financial inclusion. i wish the workshop all success. bis central bankers ’ speeches bis central bankers ’ speeches bis central bankers ’ speeches note : scheduled commercial banks ( excluding rrbs ) bis central bankers ’ speeches bis central bankers ’ speeches