UPSC Prelims 2010 · General Studies
Question 138: Economy and Social Development
With reference to India, consider the following :
- 1.Nationalization of Banks
- 2.Formation of Regional Rural Banks
- 3.Adoption of villages by Bank Branches
Which of the above can be considered as steps taken to achieve the “financial inclusion” in India ?
AnswerThe answer is (d).
Financial inclusion means bringing banking services to the poor and the rural population. Bank nationalisation (1969 and 1980) took banks to rural and semi-urban areas; Regional Rural Banks (from 1975) were set up to serve small farmers and artisans; and the adoption of villages by bank branches was meant to give each village access to credit and savings. All three are steps towards financial inclusion.
- 1. Nationalisation took banking to rural and semi-urban areas.
- 2. Regional Rural Banks serve small farmers and artisans.
- 3. Adopting villages gives them credit and savings access.
How you could have got this
- If you were sure statement 1 is correct, (b) and (c) go: each of them leaves 1 out.
What you needed to know: Nationalisation took banking to rural and semi-urban areas.
- Then, if you were sure statement 3 is correct, (a) goes: it leaves 3 out.
What you needed to know: Adopting villages gives them credit and savings access.
Only (d) is left. You didn’t need statement 2.
This follows an unofficial answer: UPSC has not published its key for this year, and if that answer is wrong, so is this path.
Which options go is worked out from UPSC’s key and the options, not by a model.
Why each option is right or wrong
- (a) Leaves out the adoption of villages by bank branches.
- (b) Leaves out bank nationalisation.
- (c) Leaves out nationalisation and the Regional Rural Banks.
- (d) Right: all three promote financial inclusion.
Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 2010, General Studies, Series A. The paper on upsc.gov.in.