Financial Inclusion Setback: RBI Reports Decline in Banking Outlets

सही उत्तर: A

Statement 1 is correct. Business Correspondents (BCs) are indeed agents appointed by banks to provide banking services, especially in remote areas, acting as an extended arm of the bank. Statement 2 is incorrect. While BCs can facilitate many banking services like opening accounts, cash deposits/withdrawals, and remittances, they have limitations. They cannot directly grant loans or accept term deposits on behalf of the bank; they can only source and process applications for these products. The final decision and sanction rest with the bank. Statement 3 is incorrect. The article explicitly states that the decline in BC outlets is a 'setback for financial inclusion efforts' and 'raises questions about the effectiveness of last-mile banking'. While SCBs saw a slight increase in branches, the overall contraction in BC outlets is not primarily due to increased traditional branch penetration, but rather factors like economic viability, operational challenges, and possibly a shift towards digital channels without adequate support for physical last-mile access.

सही उत्तर: B

Statement 1 is correct. PMJDY is a national mission for financial inclusion launched in 2014, aiming to provide universal access to banking facilities with a focus on basic savings bank accounts, access to credit, insurance, and pension facilities. It includes features like overdraft facility of ₹10,000 and RuPay debit cards. Statement 2 is correct. Small Finance Banks (SFBs) were conceptualized by the RBI to further financial inclusion by providing credit and other financial services to segments traditionally not served by large commercial banks. Statement 3 is incorrect. Payment Banks are restricted from undertaking lending activities. Their primary objective is to facilitate payments and remittances, accept demand deposits (up to a certain limit), and issue debit cards, but they cannot issue credit cards or provide loans.

सही उत्तर: B

The article highlights that the decline in banking outlets, particularly BCs, 'could disproportionately affect vulnerable populations, hindering their access to credit, savings, and other essential financial services.' When formal financial channels become inaccessible, vulnerable populations often turn to informal credit sources (like moneylenders), which typically charge exorbitant interest rates and can lead to a debt trap. This is a direct and severe consequence of reduced financial access. Option A is unlikely to be a universal consequence, as digital adoption requires literacy, infrastructure, and trust, which are often lacking in the very populations affected by outlet closures. Option C might be a consequence for banks in terms of their balance sheets but is not a direct consequence for financial inclusion or vulnerable populations. Option D is contradicted by the general trend; while SCBs saw a slight increase in branches, the overall decline in outlets suggests a systemic issue, and a 'greater focus' on remote rural branches is not a guaranteed outcome, especially given the economic viability challenges.