gs1medium

With reference to India, consider the following:

  1. 1.Nationalization of Banks.
  2. 2.Formation of Regional Rural Banks.
  3. 3.Adoption of villages by Bank Branches. Which of the above can be considered as steps taken to achieve the "financial inclusion" in India?
  1. A.1 and 2 only
  2. B.2 and 3 only
  3. C.3 only
  4. D.1, 2 and 3
▶ Answer & Explanation

Correct answer: D. 1, 2 and 3

Financial inclusion aims to bring unbanked populations into the formal financial system. The nationalization of banks in 1969 was a significant step towards expanding banking reach and directing credit to priority sectors. The establishment of Regional Rural Banks (RRBs) in 1975 was specifically designed to cater to rural and semi-urban areas, increasing access to formal credit. The "Lead Bank Scheme", which involved adopting villages by bank branches, was also a strategic initiative to deepen financial penetration and promote banking services at the grassroots level.

Source: UPSC gs1 2010

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