Which of the following could be a description of the term 'Financial Inclusion'?

Correct option is C

The correct answer is (c) Delivery of financial services at affordable cost to the poor.

Financial Inclusion refers to providing affordable financial services such as banking, credit, insurance, and pension to the economically weaker sections of society. It aims to ensure access to financial resources, promote savings, and reduce economic disparity. The Government of India has launched several schemes like Pradhan Mantri Jan Dhan Yojana (PMJDY) to enhance financial inclusion.

Information Booster

• Definition: Ensures universal access to financial services at an affordable cost.
• Key Services: Bank accounts, credit, insurance, pension, and digital payments.
• Major Initiatives:
  • Pradhan Mantri Jan Dhan Yojana (PMJDY) - 2014
  • MUDRA (Micro Units Development and Refinance Agency) - 2015
  • Digital payments (UPI, AEPS, mobile banking)
• Regulatory Role: Reserve Bank of India (RBI) and NABARD (National Bank for Agriculture and Rural Development) play a key role.
• Impact: Boosts economic growth, financial literacy, and credit availability.

Additional Knowledge

• Use of mobile phone for financial transactions: Part of Digital Banking, but not a full definition of financial inclusion.
• Facility of transfer of money free of cost: Not a financial inclusion objective, as transactions may have minimal costs.
• Implementation of 'Know Your Customer' (KYC) norm: A regulatory measure to prevent fraud and money laundering, not financial inclusion itself.