Directions (Q. 1-5): Read the passage carefully and answer the questions given below it. Certain words/ phrases are given in bold to help you locate them while answering some of the questions.
Financial inclusion is a process of ensuring the availability of financial services to all sections of society, at an affordable cost. A key objective of financial inclusion is to help the unbanked population with institutional finance, to enable them to become self-employed and ensure a stable income.
The government has made a concerted effort to extend financial inclusion by nationalising banks and establishing a network of rural cooperatives and regional rural banks. The RBI too has initiatives like priority sector lending since the early 1970s, opening of no-frills accounts, establishing business correspondents (BCs) and easing of know-your- customer (KYC) norms. Its latest efforts include the preparation of guidelines for licensing payments banks and small banks. The National Bank for Agriculture and Rural Development (NABARD) has also supported the cause, adopting measures for cooperative banks and regional rural banks, enabling kisan credit cards and spreading financial literacy. In addition, a number of private sector institutions have also been operating in the area. Despite all this, nearly half the population/ households do not even have a bank account.
It is in this context that Finance Minister Arun Jaitley, in his maiden budget speech, mentioned the Financial Inclusion Mission (FIM) to provide banking services to all households in India. The FIM, focused on empowering the weaker sections of society, was launched on August 15, with two bank accounts eligible for credit per family. The scheme reportedly conceives six pillars to achieve comprehensive or sampoorn financial inclusion. These are universal access to banking facilities, financial literacy, basic bank accounts and availability of micro credit, micro insurance, and pension scheme. The vision is to have a banking account for each family and beneficiary by March 2016. To encourage people to start using banking facilities, the government is considering providing an overdraft of `5,000 through a debit card to every basic banking account holder. The strategy is to strengthen the existing business correspondent model (BCM) to make it operationally flexible and viable with the expansion of banking services.
1. What is the main agenda behind extension of financial inclusion policy?
1) To offer tenors to the local population that would convince them to invest their savings in financial institutions
2) To make banking transaction easy and accessible to the farmers and astisans only
3) To make monitoring and supervision possible by the Ministry of Finance
4) To change the mindset of the financal institutions.
5) To ensure that the unbanked population avail of all kinds of banking services, including opening of bank accounts and debit card system
2. What is financial inclusion all about?
(A) It is about inclusion of all financial institutions, regional rural banks and rural cooperatives into the rubric of Finance Commission of India.
(B) It is about ensuring access to financial services for all sections of society.
(C) It is about ensuring access to institutional finance under KYC norms.
1) Only (A) 2) Only (B)
3) Only (C) 4) Only (A) and (B)
5) Only (B)and (C)
3. What effort(s) has/have been made to extend financial inclusion?
1) Nationalisation of banks
2) Establishment of a network of rural cooperative banks and RRBs
3) Opening of zero-balance accounts
4) Easing of KYC norms
5) All the above
4. Which of the following is not one of the functions of
NABARD mentioned in the passage?
1) Enabling kisan credit cards
2) Spreading financial literacy
3) Allowing financial assistance for establishing medium-and small-scale industries
4) Helping RRBs and cooperative banks in performing certain functions
5) None of these
5. What are the goals to be achieved by the Financial Inclusion Mission of India?
(A) Empowerment of the weaker sections of society
(B) To make the unbanked population eligible for bank credit
(C) To provide universal access to financial literacy and availability of micro credit, micro insurance and pension scheme
1) Only (A) and (B) 2) Only (B) and (C)
3) Only (A) and (C) 4) All (A), (B) and (C)
5) Only (A)
Directions (Q. 6-8): Choose the word/group of words which is MOST SIMILAR in meaning to the word/ group of words printed in bold as used in the passage.
6. Maiden
1) final 2) concluding 3) first
4) latest 5) interesting
7. Conceives
1) avoids 2) accepts 3) disregards
4) dislikes 5) knows
8. Strategy
1) honesty 2) openness 3) structure
4) working 5) plan
Directions (Q. 9-10): Choose the word/group of words which is MOST OPPOSITE in meaning of the word/ group of words printed in bold as used in the passage.
9. Stable
1) secure 2) uncertain 3) steady
4) balanced 5) lasting
10. Concerted
1) united 2) joint 3) planned
4) disorganised 5) mutual
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