CAIIB · CB

FINANCIAL INCLUSION AND DEVELOPMENT

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Central Banking (Elective) — CAIIB.

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Q

What is the definition of financial inclusion as adopted by the Reserve Bank of India?

A

Financial inclusion is the process of ensuring access to appropriate financial products and services needed by vulnerable groups at an affordable cost in a fair and transparent manner by mainstream institutional players.

Q

What is the FI-Index composite score range published by RBI annually?

A

0 to 100, with 100 representing full financial inclusion

Q

Which committee first formally recommended financial inclusion as a policy objective in India?

A

The C. Rangarajan Committee on Financial Inclusion (2008) formally recommended a national financial inclusion strategy, emphasizing credit, savings, and insurance access for the unbanked population.

Q

What is the minimum balance requirement for a Basic Savings Bank Deposit Account?

A

Zero minimum balance is required for BSBD accounts

Q

What is the Pradhan Mantri Jan Dhan Yojana (PMJDY) and when was it launched?

A

PMJDY is a national financial inclusion mission launched on August 28, 2014, aiming to provide universal banking access with zero-balance accounts, RuPay debit cards, and overdraft facilities to unbanked households.

Q

What is the maximum monthly withdrawal limit allowed under a BSBD account?

A

Four withdrawals per month including ATM withdrawals

Q

What is a Basic Savings Bank Deposit (BSBD) account and what are its key features?

A

A BSBD account is a no-frills, zero-minimum-balance account mandated by RBI to promote financial inclusion, allowing four free withdrawals per month and offering basic banking services without any charges.

Q

Which institution manages the SHG-Bank Linkage Programme in India?

A

NABARD manages and promotes the SHG-Bank Linkage Programme

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