38 - Financial Inclusion
Banking Awareness Multiple Choice Questions (MCQs) and Answers with explanation on Financial Inclusion for IBPS Bank PO, IBPS Bank Clerical, RRB PO and Clerical, SBI PO and SBI Clerical, IBPS Recruitments, RBI Grade B and RBI Bank
1. Which one of the is PMJDY related to?
[A] Financial inclusion
[B] Bank
[C] Literacy
[D] Female education
Show Answer
Correct Answer: A [Financial inclusion]
Notes:
Pradhan Mantri Jan Dhan Yojana, is financial inclusion program of Government of India which is applicable to 20 to 65 years age group, that aims to expand and make affordable access to financial services such as bank accounts, remittances, credit, insurance and pensions.
2. What is the amount for accidental insurance cover in PMJDY?
[A] Rs. 1 lac
[B] Rs. 2 lac
[C] Rs. 50 lac
[D] Rs. 10 lac
Show Answer
Correct Answer: B [Rs. 2 lac]
Notes:
Under the revamped scheme, accidental insurance cover for new RuPay card holders has been raised from Rs 1 lakh to Rs 2 lakh for new PMJDY accounts opened after August 28.
3. What is/are the main aim of financial inclusion?
[A] to maintain a certain quantity of liquid assets with themselves at any point of time of their total time and
[B] to control money supply in the economy
[C] to provide basic banking services to all section of society in urban areas or rural areas at affordable cost
[D] Both A and B
Show Answer
Correct Answer: C [to provide basic banking services to all section of society in urban areas or rural areas at affordable cost]
Notes:
Financial inclusion aims to bring in digital financial solutions for the economically underprivileged people of the nation. It also intends to bring in mobile banking or financial services in order to reach the poorest people living in extremely remote areas of the country.
4. Financial inclusion means which of the following?
[A] retail banking
[B] bringing all poor people under banking net
[C] financial statements
[D] wholesale banking
Show Answer
Correct Answer: B [bringing all poor people under banking net]
Notes:
Financial inclusion aims to bring in digital financial solutions for the economically underprivileged people of the nation. It also intends to bring in mobile banking or financial services in order to reach the poorest people living in extremely remote areas of the country.
5. Which of the following efforts fall under Financial inclusion plan of RBI/Government?
[A] Nationalization of banks
[B] Public Sector Lending targets
[C] Zero Balance accounts
[D] All of the above
Show Answer
Correct Answer: D [All of the above]
Notes:
Efforts like Nationalization of banks, Public Sector Lending targets and Zero Balance accounts fall under Financial inclusion plan of RBI/Government.
6. Which of the following is not true regarding Financial Inclusion plan?
[A] Simplified KYC norms for accounts opening
[B] Mandatory branches in unbanked villages
[C] BSBDA accounts with minimum balance criteria
[D] Micro branches to be opened in rural area
Show Answer
Correct Answer: C [BSBDA accounts with minimum balance criteria]
Notes:
Financial inclusion could be impeded by Know Your Customer regulation, according to a recent report published by the South African Reserve. Mandatory branches are to be intended in unbanked villages and micro branches should be opened in rural area.
7. What is the full form of FINO?
[A] Financial Investment Network and Operations
[B] Farmers’ Investment Network and Operations
[C] Farmers’ Inclusion Network and Operations
[D] Financial Inclusion Network and Operations
Show Answer
Correct Answer: D [Financial Inclusion Network and Operations]
Notes:
Financial Inclusion Network and Operations (FINO), based in the financial capital of India, is an integrated technology platform and delivery channel, enabling sourcing and servicing micro customers on a large scale.
8. Who among the following is a banking corresponding agent?
[A] An authorized representative of bank who offer banking services in unbanked areas
[B] Any person who offer banking services in unbanked areas
[C] An authorized representative of bank who makes profits for banks
[D] None of the above
Show Answer
Correct Answer: A [An authorized representative of bank who offer banking services in unbanked areas]
Notes:
Business Correspondents are retail agents engaged by banks for providing banking services at locations other than a bank branch/ATM. BCs enable a bank to provide its limited range of banking services at low cost.
9. Which of the following is true regarding BCA?
[A] BCA works for Insurance companies
[B] A BCA can provide services to only 1 bank
[C] A BCA can provide services to more than 1 bank
[D] None of the above
Show Answer
Correct Answer: C [A BCA can provide services to more than 1 bank]
Notes:
Baseline Credit Assessment. is a measure of the probability that a bank will require support to avoid default beyond the support provided by its affiliates. overview.
10. Financial Inclusion means provision of which of the following?
[A] Financial services like payments, remittances, savings, loans, etc at affordable cost.
[B] Ration at affordable cost
[C] House at affordable cost
[D] Education at affordable cost
Show Answer
Correct Answer: A [Financial services like payments, remittances, savings, loans, etc at affordable cost.]
Notes:
Financial Inclusion means provision of Financial services like payments, remittances, savings, loans, etc at affordable cost.
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