Financial Inclusion and Development
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Central Banking (Elective) — CAIIB.
One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
How does the Reserve Bank of India define 'financial inclusion'?
The RBI defines financial inclusion as delivering financial services such as banking, credit, insurance, and payments at affordable cost to disadvantaged and low-income groups, ensuring all segments of society particularly vulnerable groups have access.
What is the primary distinction between a Business Facilitator and a Business Correspondent under RBI guidelines?
BCs can disburse credit and collect repayments; BFs cannot.
Which groups are specifically identified as the primary target of financial inclusion efforts?
Vulnerable groups such as weaker sections and low-income groups are specifically identified as the primary targets of financial inclusion, as they historically lack access to formal financial services.
Which activities are explicitly within the scope of a Business Correspondent but NOT a Business Facilitator?
Disbursing small value credit and collecting loan repayments.
Why is financial inclusion considered important beyond merely opening bank accounts?
Financial inclusion goes beyond opening bank accounts because it encompasses ongoing affordable access to a full range of financial services including savings, credit, insurance, and payments, rather than just account ownership.
Through which two channels does financial inclusion improve monetary policy transmission?
Shifting savings to deposits and expanding interest-sensitive bank credit access.
What range of financial services does a comprehensive definition of financial inclusion cover?
A comprehensive definition of financial inclusion covers banking, credit, insurance, and payments, ensuring disadvantaged groups have access to all these services at affordable cost, not just one category.
When was Pradhan Mantri Jan Dhan Yojana (PMJDY) launched?
August 2014.
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