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Economy & Development Cluster53 Verified Questions
Financial Inclusion in India GK Questions & Answers
Financial inclusion in India represents a state-led structural drive to deliver affordable formal banking, credit, insurance, and payment services to marginalized demographics. The National Mission on Financial Inclusion, launched on August 28, 2014, under the Pradhan Mantri Jan Dhan Yojana (PMJDY), established universal banking access through Basic Savings Bank Deposit Accounts (BSBDA) featuring zero minimum balances, RuPay debit cards with inbuilt accidental insurance, and overdraft facilities. This framework coalesced with Aadhaar biometric authentication and telecommunications expansion to form the Jan Dhan-Aadhaar-Mobile (JAM) Trinity. The JAM infrastructure enabled the Direct Benefit Transfer (DBT) mechanism, channeling welfare subsidies directly into beneficiary bank accounts and eliminating intermediary leakages across schemes like PM-KISAN and PAHAL. Retail payments underwent a digital transformation through the National Payments Corporation of India (NPCI)—an umbrella organization established in 2008 under the Payment and Settlement Systems Act 2007 by the Reserve Bank of India and Indian Banks' Association. NPCI engineered the Unified Payments Interface (UPI) in 2016, operating on the Immediate Payment Service (IMPS) protocol to provide instantaneous, interoperable, round-the-clock mobile financial settlements across banking institutions.
High-yield conceptual summaries for competitive exams and rapid revision.
Pradhan Mantri Jan Dhan Yojana (PMJDY) launched on August 28, 2014, offering unbanked households zero-balance accounts, RuPay debit cards, and overdraft access.
The JAM (Jan Dhan-Aadhaar-Mobile) Trinity serves as the structural pipeline enabling Aadhaar-linked Direct Benefit Transfer (DBT) to eliminate subsidy leakages.
National Payments Corporation of India (NPCI) was incorporated in 2008 under the Payment and Settlement Systems Act 2007 as a not-for-profit Section 8 company.
Unified Payments Interface (UPI), launched by NPCI in 2016, enables instant real-time bank transfers using Virtual Payment Addresses (VPA) via mobile devices.
Priority Sector Lending (PSL) guidelines mandate domestic commercial banks to allocate 40% of Adjusted Net Bank Credit (ANBC) to designated sectors like agriculture and MSMEs.
Showing 25 Curated Questions53 Total in Bank
1ID: GK-BANK-00175
hardHistory of Indian Banking & Nationalisation
Who served as the Chairman of the Committee on Financial Inclusion (2008) which recommended establishing the National Mission on Financial Inclusion and creating the Financial Inclusion Fund (FIF)?
Verified Explanation
The Committee on Financial Inclusion headed by Dr. C. Rangarajan submitted its landmark report in 2008 recommending comprehensive institutional and technological strategies for universal banking access.
2ID: GK-AGRI-00219
mediumRural Credit, NABARD & Agro-Schemes
Which RBI committee, submitting its report in January 2014, recommended differentiated bank licensing that created Payments Banks and Small Finance Banks for financial inclusion?
Verified Explanation
The Committee on Comprehensive Financial Services for Small Businesses and Low Income Households headed by Dr. Nachiket Mor recommended differentiated banking licences.
3ID: GK-SCHM-00164
hardEducation, Skill Development & Youth Schemes
Under the Financial Inclusion Index (FI-Index) published annually by the Reserve Bank of India, what are the three broad parameter dimensions and their respective weightages?
Verified Explanation
The RBI FI-Index captures information on various aspects of financial inclusion across three broad parameters: Access (35% weightage), Usage (45% weightage), and Quality (20% weightage).
4ID: GK-ECON-00020
easyBanking & RBI Monetary Policy
Which scheme promotes financial inclusion by enabling zero-balance bank accounts for every household in India?
Verified Explanation
PMJDY was launched in August 2014 to ensure universal banking access and direct benefit transfers.
5ID: GK-SCHM-00179
hardPMJDY, PMSBY, PMJJBY, APY & Pensions
Under the National Strategy for Financial Inclusion (NSFI) 2019-2024 formulated by the RBI, what is the targeted milestone for geographical banking access across rural habitations?
Verified Explanation
A primary objective of NSFI 2019-2024 was to provide access to a formal financial service provider within a reasonable distance of 5 km or within a hamlet of 500 households in hilly areas.
6ID: GK-SCHM-00315
mediumPMJDY, PMSBY, PMJJBY, APY & Pensions
Under the National Strategy for Financial Inclusion (NSFI 2019-2024) formulated by RBI, what geographic access target was set for formal financial service points in rural India?
Verified Explanation
NSFI (2019-2024) mandated providing access to formal financial services (banking outlet/BC) within a 5 km radius or 15-minute walking distance to every village of 500 households in plains and 250 in hills.
7ID: GK-BANK-00206
mediumCommercial Banks, Payment Banks & SFBs
Under the RBI's guidelines on Small Finance Banks (SFBs), what minimum percentage of their total banking branches must be located in unbanked rural centres (Tier-5 and Tier-6 centres)?
Verified Explanation
RBI operating guidelines mandate that Small Finance Banks (SFBs) must open at least 25% of their total branches in unbanked rural centres (population less than 10,000) to ensure rural financial inclusion.
8ID: GK-TAX-00439
easyGST Architecture & GST Council Framework
Which of the following banking and financial services is fully exempt from Goods and Services Tax (GST) in India?
Verified Explanation
Services provided by banking companies to Basic Savings Bank Deposit (BSBD) account holders under the Pradhan Mantri Jan Dhan Yojana (PMJDY) are specifically exempted from GST to foster universal financial inclusion.
9ID: GK-BANK-00316
mediumRBI Functions, Repo Rates & Monetary Policy
What medium-term strategic framework was launched by the RBI for the period 2023–2025 to guide its institutional and supervisory development?
Verified Explanation
'Utkarsh 2.0' (2023–2025) is the second phase of RBI's medium-term strategy framework, focusing on harnessing cutting-edge technology, enhancing supervisory prowess, and deepening financial inclusion.
10ID: GK-BANK-00034
mediumCommercial Banks, Payment Banks & SFBs
Which committee set up by the RBI in 2013 recommended the creation of 'Differentiated Banks' such as Payments Banks and Small Finance Banks in India?
Verified Explanation
The Committee on Comprehensive Financial Services for Small Businesses and Low Income Households headed by Nachiket Mor (2013-14) recommended niche/differentiated banking licenses.
11ID: GK-BIZ-00236
easyStartup Ecosystem, Unicorns & IBC Insolvency
Launched in April 2016 by the Government of India, what is the loan amount range provided under the 'Stand-Up India' scheme to support SC, ST, and Women entrepreneurs?
Verified Explanation
The Stand-Up India scheme, launched in 2016 and administered through SIDBI and commercial banks, facilitates composite bank loans between ₹10 lakh and ₹1 crore to at least one SC or ST borrower and at least one woman borrower per bank branch for setting up greenfield enterprises. This regulatory mechanism fosters corporate transparency, investor protection, and robust governance standards in India.
12ID: GK-SCHM-00127
easyEducation, Skill Development & Youth Schemes
What is the maximum investment limit permitted per financial year in a Sukanya Samriddhi Account (SSA) opened under the Beti Bachao Beti Padhao campaign?
Verified Explanation
Under the Sukanya Samriddhi Account Rules, the minimum annual deposit is ₹250 and the maximum deposit permitted in a financial year is ₹1,50,000.
13ID: GK-BANK-00035
mediumCommercial Banks, Payment Banks & SFBs
What is the maximum balance per individual customer permitted at the end of the day in a Payments Bank account in India?
Verified Explanation
In April 2021, the RBI doubled the maximum end-of-day balance limit for Payments Banks from ₹1 lakh to ₹2 lakh per individual customer.
14ID: GK-BANK-00077
mediumCommercial Banks, Payment Banks & SFBs
What is the minimum paid-up equity capital mandated by the RBI to establish a Payments Bank in India?
Verified Explanation
As per RBI Guidelines for Licensing of Payments Banks, the minimum paid-up equity capital for setting up a Payments Bank is ₹100 Crore.
15ID: GK-BANK-00347
mediumCommercial Banks, Payment Banks & SFBs
Which was the first Small Finance Bank (SFB) to commence commercial banking operations in India in April 2016 in Jalandhar, Punjab?
Verified Explanation
Capital Small Finance Bank (formerly Capital Local Area Bank Ltd) commenced operations on 24 April 2016 from Jalandhar, Punjab, making it India's very first Small Finance Bank.
16ID: GK-BANK-00382
mediumCommercial Banks, Payment Banks & SFBs
What specific sub-target is mandated for commercial banks within the 18% Priority Sector Lending target for Agriculture?
Verified Explanation
Within the 18% agricultural PSL target, banks are mandated to achieve a sub-target of 10% of ANBC (phased up from 8%) specifically for Small and Marginal Farmers (SMFs).
17ID: GK-BANK-00437
mediumCommercial Banks, Payment Banks & SFBs
What is the overall Priority Sector Lending (PSL) target mandated for Small Finance Banks (SFBs) as a percentage of their Adjusted Net Bank Credit (ANBC)?
Verified Explanation
Small Finance Banks (SFBs) have a higher PSL mandate than universal banks, requiring 75% of their Adjusted Net Bank Credit (ANBC) to be extended to priority sectors.
18ID: GK-INST-00269
mediumNITI Aayog, Planning History & Inter-State Council
Under the Aspirational Districts Programme (ADP) launched by NITI Aayog in January 2018, how many socio-economically lagging districts across India were selected for targeted transformation?
Verified Explanation
The Aspirational Districts Programme was launched by NITI Aayog across 112 underdeveloped districts in India, focusing on Health & Nutrition, Education, Agriculture & Water Resources, Financial Inclusion, and Basic Infrastructure.
19ID: GK-INST-00569
easyNITI Aayog, Planning History & Inter-State Council
Under NITI Aayog's Aspirational Districts Programme (ADP), what combined weightage is assigned to 'Health & Nutrition' and 'Education' in the composite ranking delta framework?
Verified Explanation
Under the ADP delta ranking methodology, Health & Nutrition (30%) and Education (30%) together carry 60% weightage, followed by Agriculture & Water Resources (20%), Financial Inclusion & Skill Development (10%), and Basic Infrastructure (10%).
20ID: GK-BANK-00276
mediumRBI Functions, Repo Rates & Monetary Policy
Under the 'Fully Accessible Route' (FAR) introduced by the RBI in April 2020, what is the quantitative investment ceiling for Foreign Portfolio Investors (FPIs) in specified benchmark Government of India securities?
Verified Explanation
Under the Fully Accessible Route (FAR), foreign investors can invest in designated Government securities without any quantitative caps or limits, paving the way for inclusion in global sovereign bond indices.
21ID: GK-SCHM-00065
easyPMJDY, PMSBY, PMJJBY, APY & Pensions
What is the minimum initial deposit required to open an account under the Sukanya Samriddhi Yojana (SSY)?
Verified Explanation
A Sukanya Samriddhi Account can be opened with a minimum initial deposit of ₹250, and thereafter deposits can be made in multiples of ₹50 up to a maximum of ₹1.5 Lakh per financial year.
22ID: GK-AGRI-00172
hardRural Credit, NABARD & Agro-Schemes
Under the Pradhan Mantri MUDRA Yojana (PMMY) supporting rural micro-enterprises, what are the three categorized loan slabs and their maximum loan amounts?
Verified Explanation
MUDRA loans are divided into: Shishu (loans up to ₹50,000), Kishore (loans above ₹50,000 and up to ₹5 lakh), and Tarun (loans above ₹5 lakh and up to ₹10 lakh).
23ID: GK-SCHM-00001
easyEducation, Skill Development & Youth Schemes
What is the slogan of Pradhan Mantri Jan Dhan Yojana (PMJDY), launched in August 2014 to ensure universal banking access across India?
Verified Explanation
Pradhan Mantri Jan Dhan Yojana was launched with the national slogan 'Mera Khata, Bhagya Vidhata' (My Account, Fortune Maker) to provide zero-balance basic savings bank accounts.
24ID: GK-SCHM-00004
easyUrban Infrastructure, Smart Cities & Energy Missions
Under the Pradhan Mantri Suraksha Bima Yojana (PMSBY), what is the annual accidental death insurance cover provided to the subscriber?
Verified Explanation
PMSBY offers an accidental death and full disability cover of ₹2 lakh (and ₹1 lakh for partial disability) to subscribers aged 18 to 70 years for a nominal annual premium.
25ID: GK-SCHM-00009
easyPMJDY, PMSBY, PMJJBY, APY & Pensions
What is the life insurance cover amount provided under the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) in case of death of the insured?
Verified Explanation
PMJJBY provides a life insurance cover of ₹2 lakh to eligible individuals aged 18 to 50 years against death due to any reason.
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