With reference to India, consider the following events:

1. Nationalisation of Banks

2. Formation of Regional Rural Banks

3. Adoption of villages by Bank Branches

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

Question

Question

This question was previously asked in

UPPSC PCS Prelims 2024 Official GS Paper-I

Answer 1

The Correct answer is Option 1.

Key Points

Nationalisation of Banks: In 1969 and 1980, the nationalisation of major banks allowed the government to provide banking services to a larger portion of the population, particularly in rural areas. This was a critical step in increasing financial inclusion.
Formation of Regional Rural Banks (RRBs): Established in 1975, RRBs were designed to provide financial services, including credit and savings, to rural populations, particularly those involved in agriculture. This step was directly aimed at serving financially excluded groups.
Adoption of Villages by Bank Branches: This initiative focused on opening bank branches in rural areas, ensuring that banking services were accessible to even the most remote villages, thus promoting financial inclusion.
Hence Option 1 is Correct.