Financial Inclusion — Set 5
Government Schemes · वित्तीय समावेशन · Questions 41–50 of 160
UPI (Unified Payments Interface) was launched in which year?
Correct Answer: C. 2016
UPI (Unified Payments Interface) was launched by NPCI in August 2016. It allows real-time peer-to-peer and person-to-merchant fund transfers through mobile applications using a Virtual Payment Address (VPA) or UPI ID. UPI transactions have grown exponentially - India processed over 13,000 crore UPI transactions worth ₹200 lakh crore in FY 2023-24. UPI has become the most popular payment method globally and India is sharing the technology internationally.
BHIM app stands for what?
Correct Answer: B. Bharat Interface for Money
BHIM stands for Bharat Interface for Money. The BHIM app was launched by PM Narendra Modi on December 30, 2016 as an Aadhaar-linked UPI payment app developed by NPCI. It was named after Dr. B.R. Ambedkar. BHIM app allows users to send and receive money using VPA/UPI ID, mobile number, or Aadhaar number. BHIM UPI is interoperable with all UPI-enabled apps.
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) covers which age group?
Correct Answer: B. 18-50 years
PMJJBY is available for bank account holders in the age group of 18-50 years. The scheme provides ₹2 lakh life insurance coverage for death from any cause at an annual premium of ₹436. Cover is renewed annually on June 1. If the account holder joins before 50 years, they can continue premium payment till 55 years to maintain continuous coverage. LIC and other life insurance companies are partner insurers.
Business Correspondent (BC) model was introduced by RBI to improve financial inclusion through?
Correct Answer: B. Using agents (BCs) to provide basic banking services in areas without bank branches
Business Correspondent (BC) model was introduced by RBI in 2006 to extend banking services in unbanked and underbanked areas through trained agents. BCs are authorized to open accounts, accept deposits, facilitate withdrawals, and process PMJDY benefits on behalf of banks. BC agents use biometric-enabled devices and AePS for transactions. PMJDY's success is largely due to the BC network expansion.
PMMY's Shishu loan category covers loans up to?
Correct Answer: C. ₹50,000
PMMY's Shishu category covers loans up to ₹50,000 for micro enterprises at the seed/start-up stage. Shishu loans are the largest in number, accounting for about 40% of total PMMY loan accounts. They are targeted at the smallest businesses including street vendors, small traders, artisans, and people starting their first enterprise. The vast majority of Shishu borrowers are women from low-income households.
Financial Inclusion Index (FI-Index) is published by which institution?
Correct Answer: C. RBI (Reserve Bank of India)
RBI publishes an annual Financial Inclusion Index (FI-Index) to capture the extent of financial inclusion across three dimensions: Access, Usage, and Quality. India's FI-Index was at 60.1 for FY2022-23 (on a scale of 0 to 100). The index helps track progress on financial inclusion goals. A higher FI-Index indicates better financial inclusion. RBI published the first FI-Index for March 2021.
PM-JAY has a connection with financial inclusion - what is it?
Correct Answer: B. PM-JAY benefits are transferred through DBT requiring bank accounts
PM-JAY (Ayushman Bharat) is linked to financial inclusion as hospital admission authorizations and certain cash benefits can be tracked through bank accounts. The broader connection is through PMJDY bank accounts that enable DBT of various welfare benefits. Financial inclusion through PMJDY creates the banking infrastructure that supports delivery of health benefits, maternity payments, and other social protection transfers under multiple schemes.
National Strategy for Financial Education (NSFE) 2020-25 is formulated by which body?
Correct Answer: C. NCFE (National Centre for Financial Education) under financial regulators
National Strategy for Financial Education (NSFE) 2020-25 was formulated by National Centre for Financial Education (NCFE) with inputs from financial sector regulators - RBI, SEBI, IRDA, and PFRDA. It focuses on 5Cs: Content, Capacity, Community, Communication, and Collaboration for promoting financial literacy across India. NCFE operates under NISM and coordinates financial education efforts of all regulators.
Pradhan Mantri MUDRA Yojana - who is eligible to apply for MUDRA loans?
Correct Answer: C. Non-farm income-generating activities in manufacturing, trading, and services sector
PMMY (Mudra) loans are available for non-farm income-generating activities in manufacturing, trading, and services sector. Eligible borrowers include small manufacturers, shopkeepers, fruit and vegetable vendors, artisans, and any micro enterprise. Women entrepreneurs, SC/ST borrowers, and minority communities are particularly encouraged. Agricultural activities per se are not covered under PMMY (covered under Agriculture schemes).
What is the 'Financial Inclusion in India' flagship initiative of RBI called?
Correct Answer: B. Financial Inclusion in India - Key Indicators
RBI publishes 'Financial Inclusion - Key Indicators' as part of its annual report and through the FI-Index to track financial inclusion progress. Key indicators include number of bank accounts, credit to unserved sectors, insurance penetration, and digital payments adoption. RBI's Annual Report on Trend and Progress of Banking in India also covers financial inclusion status. RBI's differentiated banking (Small Finance Banks and Payment Banks) also promotes financial inclusion.