JAIIB · PPB

Financial Inclusion And Financial Literacy

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Principles and Practices of Banking — JAIIB.

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Q

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

A

Financial Inclusion aims to provide affordable financial services such as savings, credit, insurance, and payments to all sections of society, especially the unbanked and underserved population.

Q

What is the FI-Index value range used by RBI to measure financial inclusion progress?

A

It ranges from 0 to 100, higher is better.

Q

Which committee recommended the Business Correspondent (BC) model for Financial Inclusion in India?

A

The Khan Committee (2004) recommended the BC model, allowing banks to use agents to extend banking services to unbanked areas without setting up full branches.

Q

What minimum balance is required to open a Basic Savings Bank Deposit Account?

A

No minimum balance is required for BSBDA.

Q

What is a Basic Savings Bank Deposit Account (BSBDA)?

A

BSBDA is a zero-balance savings account with no minimum balance requirement, offering basic banking facilities to financially excluded individuals as part of RBI's financial inclusion drive.

Q

Which year was the Pradhan Mantri Jan Dhan Yojana officially launched?

A

PMJDY was launched on 28 August 2014.

Q

What is the maximum cash withdrawal allowed per month in a BSBDA account?

A

Under BSBDA guidelines, account holders can withdraw cash up to four times per month including ATM withdrawals, with no ceiling on the number of deposits.

Q

What is the maximum number of withdrawals allowed per month in a BSBDA account?

A

Maximum four withdrawals are allowed per month.

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