MCQs on Financial Inclusion in India

1. What is financial inclusion?
   A) Access to banking services
   B) Access to insurance services
   C) Access to credit and savings
   D) All of the above
   Answer: D) All of the above
2. Which scheme was launched by the Government of India to promote financial inclusion?
   A) Jan Dhan Yojana
   B) MGNREGA
   C) PM Kisan Scheme
   D) Skill India Mission
   Answer: A) Jan Dhan Yojana
3. In which year was the Pradhan Mantri Jan Dhan Yojana (PMJDY) launched?
   A) 2012
   B) 2014
   C) 2016
   D) 2018
   Answer: B) 2014
4. What is the primary objective of the PMJDY?
   A) Providing free insurance
   B) Promoting entrepreneurship
   C) Ensuring access to banking facilities
   D) Increasing tax revenue
   Answer: C) Ensuring access to banking facilities
5. Which of the following is NOT a benefit of financial inclusion?
   A) Economic growth
   B) Poverty alleviation
   C) Increased taxes
   D) Improved savings
   Answer: C) Increased taxes
6. Which regulatory body oversees financial inclusion initiatives in India?
   A) Reserve Bank of India (RBI)
   B) Securities and Exchange Board of India (SEBI)
   C) Insurance Regulatory and Development Authority (IRDA)
   D) Ministry of Finance
   Answer: A) Reserve Bank of India (RBI)
7. What does the term ‘unbanked’ refer to?
   A) Individuals with savings accounts
   B) Individuals without access to banking services
   C) Individuals with credit cards
   D) Individuals with insurance policies
   Answer: B) Individuals without access to banking services
8. What percentage of India’s population was financially included as of 2021?
   A) 40%
   B) 60%
   C) 80%
   D) 100%
   Answer: C) 80%
9. Which of the following is a digital payment initiative in India?
   A) UPI (Unified Payments Interface)
   B) MGNREGA
   C) Pradhan Mantri Awas Yojana
   D) National Rural Livelihood Mission
   Answer: A) UPI (Unified Payments Interface)
10. What is the purpose of the Financial Literacy Week initiated by RBI?
    A) To promote digital transactions
    B) To educate people about financial products
    C) To increase tax compliance
    D) To promote entrepreneurship
    Answer: B) To educate people about financial products
11. Which financial inclusion program focuses on women’s empowerment?
    A) National Rural Livelihood Mission
    B) Swachh Bharat Abhiyan
    C) Beti Bachao Beti Padhao
    D) Pradhan Mantri Awas Yojana
    Answer: A) National Rural Livelihood Mission
12. What is the main challenge of financial inclusion in rural areas?
    A) Lack of awareness
    B) High literacy rates
    C) Availability of technology
    D) Strong banking infrastructure
    Answer: A) Lack of awareness
13. What role do Microfinance Institutions (MFIs) play in financial inclusion?
    A) They provide insurance services.
    B) They offer small loans to the underserved.
    C) They promote large-scale industries.
    D) They facilitate tax collection.
    Answer: B) They offer small loans to the underserved.
14. Which of the following is a digital platform for financial inclusion in India?
    A) SWIFT
    B) RTGS
    C) PMGDISHA
    D) Aadhar-enabled Payment System (AEPS)
    Answer: D) Aadhar-enabled Payment System (AEPS)
15. What does ‘Aadhar’ enable in the context of financial inclusion?
    A) Access to land records
    B) Identity verification for services
    C) Tax filing
    D) Insurance claims
    Answer: B) Identity verification for services
16. Which bank launched the ‘No Frills Account’ to promote financial inclusion?
    A) State Bank of India
    B) Bank of Baroda
    C) HDFC Bank
    D) Reserve Bank of India
    Answer: A) State Bank of India
17. Which scheme aims to provide credit to small farmers in India?
    A) Kisan Credit Card
    B) PMJDY
    C) MUDRA Scheme
    D) National Rural Livelihood Mission
    Answer: A) Kisan Credit Card
18. What is the primary focus of the MUDRA scheme?
    A) Providing loans to farmers
    B) Supporting small businesses
    C) Promoting digital payments
    D) Providing health insurance
    Answer: B) Supporting small businesses
19. What does the acronym SHG stand for in the context of financial inclusion?
    A) Sustainable Housing Group
    B) Self Help Group
    C) Social Housing Grant
    D) Small Home Grant
    Answer: B) Self Help Group
20. What is the significance of the RBI’s Financial Inclusion Index?
    A) To measure the efficiency of banks
    B) To assess the level of financial inclusion in the country
    C) To evaluate the performance of microfinance institutions
    D) To track government spending
    Answer: B) To assess the level of financial inclusion in the country
21. Which of the following is a barrier to financial inclusion in India?
    A) Strong banking network
    B) High literacy rates
    C) Socio-cultural factors
    D) Government policies
    Answer: C) Socio-cultural factors
22. Which initiative was launched to encourage financial literacy among school children?
    A) Financial Literacy Week
    B) Smart Banking Initiative
    C) School Banking Program
    D) Digital India Program
    Answer: C) School Banking Program
23. Which of the following is a key feature of the PMJDY?
    A) Free life insurance
    B) Loan facilities
    C) Investment in stocks
    D) Home loans
    Answer: A) Free life insurance
24. What role does technology play in financial inclusion?
    A) Reducing costs for banks
    B) Increasing transaction time
    C) Limiting access to financial products
    D) None of the above
    Answer: A) Reducing costs for banks
25. Which of the following acts as a financial intermediary for the poor?
    A) Commercial banks
    B) Cooperative banks
    C) Microfinance institutions
    D) All of the above
    Answer: D) All of the above
26. Which program aims to provide self-employment opportunities for rural youth?
    A) National Rural Livelihood Mission
    B) PMJDY
    C) MUDRA
    D) Start-Up India
    Answer: A) National Rural Livelihood Mission
27. What is one of the challenges in reaching remote areas for financial inclusion?
    A) High demand for financial services
    B) Inadequate transportation infrastructure
    C) High literacy rates
    D) Abundant technology access
    Answer: B) Inadequate transportation infrastructure
28. Which of the following is essential for ensuring the sustainability of financial inclusion?
    A) Continuous government funding
    B) Financial literacy programs
    C) International loans
    D) Increased taxes
    Answer: B) Financial literacy programs
29. What is the purpose of the Financial Stability and Development Council (FSDC)?
    A) To increase tax revenue
    B) To promote financial inclusion
    C) To monitor macro-prudential regulation of the economy
    D) To provide loans to farmers
    Answer: C) To monitor macro-prudential regulation of the economy
30. Which is a common form of financial exclusion in India?
    A) Over-indebtedness
    B) High savings rates
    C) Easy access to credit
    D) None of the above
    Answer: A) Over-indebtedness

These MCQs cover various aspects of financial inclusion in India, including its importance, challenges, and initiatives, providing a comprehensive overview for examination purposes.