JAIIB · PPB

FINANCIAL INCLUSION & 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 the Reserve Bank of India?

A

Financial Inclusion aims to provide access to affordable financial services such as savings, credit, insurance, and payments to all segments of society, especially the excluded and low-income groups.

Q

What is the definition of Financial Inclusion according to the Committee on Financial Inclusion (Rangarajan Committee)?

A

Delivery of financial services at affordable cost to disadvantaged groups.

Q

Which committee's recommendations formed the basis for India's structured Financial Inclusion policy?

A

The C. Rangarajan Committee (2008) on Financial Inclusion provided the foundational recommendations that shaped India's structured policy framework for financial inclusion.

Q

What is the minimum number of transactions allowed free per month in a BSBDA?

A

Four withdrawals per month including ATM transactions are free.

Q

What is a Basic Savings Bank Deposit Account (BSBDA) and who is eligible to open one?

A

BSBDA is a zero-balance, no-frills account with basic banking facilities, open to any individual including those with minimal KYC documentation, aimed at bringing the unbanked population into the formal banking system.

Q

What is the maximum annual credit limit under the MUDRA Shishu category?

A

Up to Rs. 50,000 under the Shishu category.

Q

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

A

A BSBDA Small Account can hold a maximum balance of Rs. 50,000 at any given time, and total credits in a year must not exceed Rs. 1,00,000.

Q

Under PMJDY, what is the accidental insurance cover provided through RuPay card?

A

Rs. 1 lakh accidental insurance through RuPay Debit Card.

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