JAIIB · PPB

16 A FINANCIAL INCLUSION

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Q

What is the primary objective of Financial Inclusion as defined by RBI?

A

Financial Inclusion aims to provide access to appropriate financial products and services to all segments of society, especially the underprivileged and low-income groups, at an affordable cost and in a fair and transparent manner.

Q

What is the National Strategy for Financial Inclusion (NSFI) and which body releases it?

A

RBI's roadmap to expand financial services access to all citizens.

Q

Which RBI committee first formally recommended a comprehensive approach to Financial Inclusion in India?

A

The C. Rangarajan Committee on Financial Inclusion (2008) provided a comprehensive framework, recommending measures to bring unbanked populations into the formal financial system.

Q

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

A

Zero minimum balance; no charges for non-maintenance.

Q

What is a Business Correspondent (BC) in the context of Financial Inclusion?

A

A Business Correspondent is an agent appointed by banks to provide banking services in areas not covered by bank branches, acting as an intermediary to extend last-mile financial services to rural and remote populations.

Q

How many free withdrawals per month are permitted in a BSBDA account?

A

Four free withdrawals per month including ATM transactions.

Q

What does the acronym PMJDY stand for?

A

PMJDY stands for Pradhan Mantri Jan Dhan Yojana, a national financial inclusion mission launched in August 2014 to ensure access to financial services for every household in India.

Q

What is the maximum balance allowed in a BSBDA Small Account at any point?

A

Rs. 50,000 at any point of time.

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