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The paper attempts to analyse the financial inclusion scenario across several developed and developing countries of the world, for the years 2011 and 2014. The study focusses on developing a financial inclusion index (FII) and in exploring its association with the human development index. It also focusses on the explanation of variation in observed FII. Principal component method has been applied to calculate the three dimension indices (availability, access and usage) and finally FII. A pooled OLS with clustered standard error regression model has been used to explain the factors influencing financial inclusion across the countries of the world. Keywords: Financial inclusion, HDI, Banking, Index, Principal component