Mumbai: India has been ranked a low 50 in a list of 100 countries - even below less developed African countries like Kenya and Morocco - in the index of financial inclusion,  prepared for the first time by Delhi-based research forum Indian Council for Research on International Economic Relations (ICRIER).

India, however, ranks way above China and Russia in the Index of Financial Inclusion, based on the extent and reach of banking services, in a list of 100 countries.

The index, which is based on 2004 data, measures the extent of availability and usage of banking services in key nations of the world based on indicators like number of bank accounts per thousand adults, number of ATMs and the number of bank branches per million people, as also the amount of bank credit and deposit.

Spain is at the top position in the IFI, followed by Canada and Portugal, while countries like Nepal, Zimbabwe and Bostwana are at the bottom of the list.

Germany has been placed at 4th position, the UK 17th, USA 21st and Japan 22nd.

In spite of the low density of bank branches in India, the ICRIER study said the usage of banking system in terms of volume of credit and deposit seems to be moderately high.

The number of bank branches per one lakh adults in India was 9.4, compared to 14.6 in Malaysia, indicating the scope of expansion of banking services in the country, the study pointed out.

Domestic deposit as percentage of GDP was 54.9 per cent in India, against 123.9 per cent in Malaysia, the study found.

The index ''can be used to compare levels of financial inclusion across economies at a particular time point. It can also be used to monitor the progress initiatives for financial inclusion over a period of time", ICRIER director and CEO Rajiv Kumar, said.

ICRISAR also plans to develop a similar India-specific index that will provide insight into the features of financial inclusion in the country, he added.

The index assumes significance as one of the major goals of the 11th Five-Year Plan is to work for financial inclusion and extend the reach of micro finance to meet credit needs of approximately 80 per cent of the population not directly covered by banks.

The government, in a bid to spread the reach of banking facilities to vulnerable sections of society, had set up a committee on financial inclusion in India.

The committee, headed by C Rangarajan, chairman of the Prime Minister's Economic Advisory Council, has defined financial inclusion as the process of ensuring access to financial services and timely and adequate availability of credit by weaker sections and low income group at an affordable cost.