Question

Which one of the following is not the objective of financial inclusion?
1. To extend financial services to poor population
2. To unlock the door of growth potential of weaker section
3. Shrinking of banking infrastructure
4. To extend financial sector into rural areas

Answer 1

Correct Answer - Option 3 : Shrinking of banking infrastructure

The correct answer is Shrinking of banking infrastructure.

• Financial inclusion:
  • Financial inclusion may be stated as the process of ensuring access to financial services and timely and adequate credit where required by vulnerable groups such as weaker sections and low-income groups at an affordable cost.
  • In a country like India, financial inclusion is a critical part of the growth process.
  • Since independence, the combined efforts of successive governments, regulatory institutions, and civil society have helped in increasing the financial inclusion net in the country.
  • The state of financial inclusion has repaired considerably over time.
  • However, financial inclusion hasn’t reached the poorest of the poor and there exist many stoppages and challenges which need immediate attention.
  • Thus, there exists both a great need and the believable to tap into the unbanked population and bring them into the financial net.
• Objective of financial inclusion
  • ​To extend financial services to poor population.
  • To unlock the door of growth potential of weaker section.
  • To extend financial sector into rural areas.