Question

With reference to India, consider the following:

1. Nationalization of Banks

2. Formation of Regional Rural Banks

3. Adoption of villages by Bank Branches

Which of the above can be considered as steps taken to achieve the “financial inclusion” in India?

(a) 1 and 2 only (b) 2 and 3 only (c) 3 only (d) 1, 2 and 3

Answer 1

(d) “Financial inclusion” is the delivery of financial services at affordable costs to vast sections of disadvantaged and low income groups. Unrestrained access to public goods and services is the sine qua non of an open and efficient society. Banking services are in the nature of public good. It is essential that availability of banking and payment services be available to the entire population without discrimination. This is the prime objective of the government.