UPSC Prelims Practice Questions — Financial democracy, the Jan Dhan transformation

Q1. Consider the following statements regarding the announcement and the early roll-out of the Pradhan Mantri Jan Dhan Yojana (PMJDY): 1. The scheme was announced by the Prime Minister in the Independence Day address of 15 August 2014, while formal opening of accounts under it commenced on 28 August 2014. 2. The original target of opening 7.5 crore accounts was fixed for 15 August 2015, and it was surpassed as early as 17 January 2015, by which date 11.50 crore accounts had been opened. 3. Guinness World Records recognised the opening of over 1.80 crore accounts by banks in the single week from 23 to 29 August 2014 under the Financial Inclusion Campaign. Which of the statements given above is/are correct?

  1. The scheme was announced by the Prime Minister in the Independence Day address of 15 August 2014, while formal opening of accounts under it commenced on 28 August 2014.
  2. The original target of opening 7.5 crore accounts was fixed for 15 August 2015, and it was surpassed as early as 17 January 2015, by which date 11.50 crore accounts had been opened.
  3. Guinness World Records recognised the opening of over 1.80 crore accounts by banks in the single week from 23 to 29 August 2014 under the Financial Inclusion Campaign.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q2. The Guinness World Records recognition earned in 2014 in connection with the Pradhan Mantri Jan Dhan Yojana was for which one of the following achievements?

  • A. The largest cash transfer programme in the world, for the direct transfer of cooking gas subsidy to consumers
  • B. The largest biometric identity enrolment programme, covering over a billion residents of the country
  • C. The largest number of bank accounts opened by banks in a single week under a financial inclusion campaign
  • D. The largest number of beneficiaries enrolled under an accident insurance scheme in a single financial year

Q3. Consider the following statements comparing the position of the Pradhan Mantri Jan Dhan Yojana in March 2015 with its position in August 2025: 1. The number of accounts rose from 14.72 crore in March 2015 to 52.81 crore in August 2025. 2. Deposits rose from ₹15,670 crore in March 2015 to about ₹2.68 lakh crore in August 2025, an increase of roughly twelve times. 3. The average deposit per account stood at about ₹4,768 in August 2025. Which of the statements given above is/are correct?

  1. The number of accounts rose from 14.72 crore in March 2015 to 52.81 crore in August 2025.
  2. Deposits rose from ₹15,670 crore in March 2015 to about ₹2.68 lakh crore in August 2025, an increase of roughly twelve times.
  3. The average deposit per account stood at about ₹4,768 in August 2025.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q4. As per the position reported for August 2025, which one of the following Pradhan Mantri Jan Dhan Yojana related counts was the highest in absolute terms?

  • A. Accounts under the scheme held by women beneficiaries
  • B. Free-of-cost RuPay debit cards issued to account holders
  • C. Accounts under the scheme located in rural and semi-urban areas
  • D. Point of Sale and mobile Point of Sale machines installed in the country

Q5. The enhanced accident insurance cover of ₹2 lakh on the RuPay card, as against the earlier cover of ₹1 lakh, is available in respect of Jan Dhan accounts opened on or after which one of the following dates?

  • A. 28 August 2014
  • B. 26 January 2015
  • C. 28 August 2018
  • D. 9 May 2015

Q6. Consider the following in respect of the entitlements attached to an account under the Pradhan Mantri Jan Dhan Yojana: 1. The account can be opened with a zero balance and carries no requirement of maintaining a minimum balance. 2. Every account holder is entitled, as a matter of right, to an overdraft of ₹10,000, irrespective of the operational history of the account. 3. The account holder is permitted four withdrawals in a month, including at automated teller machines, free of charge. 4. The debit card issued with the account is provided free of cost and carries a built-in accident insurance cover. Which of the statements given above is/are correct?

  1. The account can be opened with a zero balance and carries no requirement of maintaining a minimum balance.
  2. Every account holder is entitled, as a matter of right, to an overdraft of ₹10,000, irrespective of the operational history of the account.
  3. The account holder is permitted four withdrawals in a month, including at automated teller machines, free of charge.
  4. The debit card issued with the account is provided free of cost and carries a built-in accident insurance cover.
  • A. 1, 3 and 4 only
  • B. 1 and 3 only
  • C. 2 and 4 only
  • D. 1, 2, 3 and 4

Q7. The Direct Benefit Transfer Mission, which coordinates the DBT architecture resting on the Jan Dhan-Aadhaar-Mobile trinity, has been placed with effect from 14 September 2015 under which one of the following?

  • A. The Department of Expenditure in the Ministry of Finance, under the Secretary (Expenditure)
  • B. NITI Aayog, the successor institution to the erstwhile Planning Commission
  • C. The Ministry of Electronics and Information Technology, under the Digital India programme
  • D. The Cabinet Secretariat, under the Secretary (Co-ordination and Public Grievances)

Q8. The Pradhan Mantri Jan Dhan Yojana, designated the National Mission for Financial Inclusion, is implemented by which one of the following?

  • A. The Department of Economic Affairs, which handles banking policy and capital markets
  • B. The Department of Financial Services in the Ministry of Finance
  • C. The Department of Expenditure, which oversees public financial management systems
  • D. The Ministry of Rural Development, the largest user of benefit transfers to accounts

Q9. Among the following indicators of financial inclusion cited in 2026, which one carried the highest reported percentage value?

  • A. The proportion of India's adult population holding a bank account
  • B. The proportion of Jan Dhan accounts located in rural and semi-urban areas
  • C. The proportion of Jan Dhan accounts held by women beneficiaries
  • D. The proportion of adults in India owning a financial account as measured by the Global Findex 2025

Q10. As stated by the Union Finance Minister in June 2026, the cumulative number of accounts opened under the Pradhan Mantri Jan Dhan Yojana had reached which one of the following levels?

  • A. About 52.81 crore accounts
  • B. About 55.90 crore accounts
  • C. About 56.16 crore accounts
  • D. Over 58 crore accounts

Q11. Among the social security schemes that ride on the Jan Dhan account architecture, which one had recorded the largest number of cumulative enrolments as of April 2025?

  • A. Atal Pension Yojana
  • B. Pradhan Mantri Jeevan Jyoti Bima Yojana
  • C. Pradhan Mantri Suraksha Bima Yojana
  • D. Pradhan Mantri Vaya Vandana Yojana

Q12. With reference to the Financial Inclusion Index published by the Reserve Bank of India, which one of the following correctly describes how the index is constructed?

  • A. It is a composite of the three parameters of Access, Usage and Quality, with Access carrying the highest weight among them
  • B. It is a composite of the three parameters of Access, Usage and Quality, with Usage carrying the highest weight among them
  • C. It is a composite of the two parameters of Access and Usage carrying equal weight, with Quality being reported as a separate index
  • D. It is a composite of the three parameters of Availability, Affordability and Usage, which are combined without assigning any weights