UPSC Prelims Practice Questions — Financial Inclusion and Citizen-centric Services

Q1. With reference to instruments operated through the Post Office Savings Bank (POSB) framework, consider the following: 1. Public Provident Fund (PPF) 2. Kisan Vikas Patra (KVP) 3. Atal Pension Yojana (APY) 4. Senior Citizens' Savings Scheme (SCSS) Which of the above is/are correctly identified as small savings schemes offered under the Post Office Savings Bank?

1. Public Provident Fund (PPF)
2. Kisan Vikas Patra (KVP)
3. Atal Pension Yojana (APY)
4. Senior Citizens' Savings Scheme (SCSS)

• A. 1, 2 and 4
• B. 1 and 3
• C. 2, 3 and 4
• D. 1, 2, 3 and 4

Q2. The collections mobilised through Post Office small savings schemes are pooled into the National Small Savings Fund (NSSF). This fund is administered under which one of the following?

• A. Ministry of Finance
• B. Ministry of Communications
• C. Reserve Bank of India
• D. Department of Posts

Q3. With reference to services delivered by India Post Payments Bank (IPPB), consider the following: 1. Aadhaar Enabled Payment System (AePS) cash transactions 2. Digital Life Certificate (DLC) services 3. Issuance of passports and Police Clearance Certificates 4. Aadhaar-based Face Authentication for banking Which of the above is/are NOT correctly identified as a function performed by IPPB?

1. Aadhaar Enabled Payment System (AePS) cash transactions
2. Digital Life Certificate (DLC) services
3. Issuance of passports and Police Clearance Certificates
4. Aadhaar-based Face Authentication for banking

• A. 3 only
• B. 1 and 3
• C. 3 and 4
• D. 2 only

Q4. Consider the following statements distinguishing India Post Payments Bank (IPPB) from the Post Office Savings Bank (POSB): 1. IPPB is a payments bank licensed by the RBI, whereas the POSB is the savings-bank arm operating small savings instruments. 2. Both IPPB and the Department of Posts are wholly owned by the Government of India. 3. IPPB was launched in 2018, more than a century after the POSB came into existence. Which of the statements given above is/are correct?

1. IPPB is a payments bank licensed by the RBI, whereas the POSB is the savings-bank arm operating small savings instruments.
2. Both IPPB and the Department of Posts are wholly owned by the Government of India.
3. IPPB was launched in 2018, more than a century after the POSB came into existence.

• A. 1 only
• B. 1 and 2 only
• C. 2 and 3 only
• D. 1, 2 and 3

Q5. The Sukanya Samriddhi Yojana, launched in 2015 as a small savings scheme for the girl child, was introduced as a financial-savings component of which one of the following flagship campaigns?

• A. Beti Bachao, Beti Padhao
• B. Pradhan Mantri Matru Vandana Yojana
• C. Mahila Shakti Kendra
• D. Poshan Abhiyaan

Q6. Consider the following statements regarding the Sukanya Samriddhi Yojana (SSY): 1. A Sukanya Samriddhi account can be opened for a girl child up to the age of 10 years, while deposits may be made for up to 15 years from the date of opening. 2. The account matures on completion of 21 years from the date of opening, but up to 50% of the balance may be withdrawn after the girl attains 18 years. 3. Unlike most other post office savings instruments, the maximum permissible annual deposit under SSY is ₹2 lakh. Which of the statements given above is/are correct?

1. A Sukanya Samriddhi account can be opened for a girl child up to the age of 10 years, while deposits may be made for up to 15 years from the date of opening.
2. The account matures on completion of 21 years from the date of opening, but up to 50% of the balance may be withdrawn after the girl attains 18 years.
3. Unlike most other post office savings instruments, the maximum permissible annual deposit under SSY is ₹2 lakh.

• A. 1 and 2 only
• B. 2 and 3 only
• C. 1 only
• D. 1, 2 and 3

Q7. With reference to the Mahila Samman Savings Certificate (MSSC), consider the following: 1. It carries a fixed interest rate of 7.5% per annum, compounded quarterly. 2. It has a tenure of two years from the date of opening. 3. The maximum deposit is capped at ₹2 lakh. 4. It permits unlimited partial withdrawals at any time during the tenure. Which of the above is/are NOT correct?

1. It carries a fixed interest rate of 7.5% per annum, compounded quarterly.
2. It has a tenure of two years from the date of opening.
3. The maximum deposit is capped at ₹2 lakh.
4. It permits unlimited partial withdrawals at any time during the tenure.

• A. 4 only
• B. 1 and 4
• C. 3 and 4
• D. 2 only

Q8. Consider the following statements comparing the Mahila Samman Savings Certificate (MSSC) with the Sukanya Samriddhi Yojana (SSY): 1. MSSC was announced in the Union Budget 2023-24, whereas SSY was introduced in 2015. 2. MSSC has a two-year tenure, in contrast to the 21-year maturity of an SSY account. 3. Like SSY, MSSC may be opened only for a girl child below 10 years of age. Which of the statements given above is/are correct?

1. MSSC was announced in the Union Budget 2023-24, whereas SSY was introduced in 2015.
2. MSSC has a two-year tenure, in contrast to the 21-year maturity of an SSY account.
3. Like SSY, MSSC may be opened only for a girl child below 10 years of age.

• A. 1 only
• B. 1 and 2 only
• C. 2 and 3 only
• D. 1, 2 and 3

Q9. Consider the following citizen-centric (G2C) services delivered through the Department of Posts network and their stated partners: 1. Aadhaar enrolment and updation, in partnership with UIDAI. 2. Passport application services through POPSKs, in partnership with the Ministry of External Affairs. 3. Doorstep micro-ATM cash withdrawal services through IPPB. 4. Issuance of PAN cards in partnership with the Reserve Bank of India. Which of the above is/are correctly identified?

1. Aadhaar enrolment and updation, in partnership with UIDAI.
2. Passport application services through POPSKs, in partnership with the Ministry of External Affairs.
3. Doorstep micro-ATM cash withdrawal services through IPPB.
4. Issuance of PAN cards in partnership with the Reserve Bank of India.

• A. 1, 2 and 3
• B. 1, 3 and 4
• C. 2 and 4
• D. 1, 2, 3 and 4

Q10. With reference to Post Office Passport Seva Kendras (POPSKs), consider the following statements: 1. They are operated jointly by the Department of Posts and the Ministry of External Affairs. 2. They typically function out of Head Post Offices. 3. The MoU between the MEA and the DoP for POPSKs was most recently renewed for a five-year period. 4. They independently print and issue passports without reference to the Passport Seva Programme. Which of the above is/are NOT correct?

1. They are operated jointly by the Department of Posts and the Ministry of External Affairs.
2. They typically function out of Head Post Offices.
3. The MoU between the MEA and the DoP for POPSKs was most recently renewed for a five-year period.
4. They independently print and issue passports without reference to the Passport Seva Programme.

• A. 4 only
• B. 1 and 4
• C. 3 and 4
• D. 2 only

Q11. Under the RBI framework, a 'payments bank' (the category to which IPPB belongs) is best defined as a differentiated bank that —

• A. accepts demand deposits up to a prescribed per-customer ceiling but cannot undertake lending or issue credit cards
• B. accepts deposits and may extend small-ticket loans but cannot issue debit cards
• C. functions purely as a payment-settlement system operator and cannot accept any deposits
• D. accepts only fixed/term deposits and may issue credit cards against them

Q12. With reference to India Post Payments Bank (IPPB) around its 8th Foundation Day (2025), consider the following: 1. It has onboarded over 12 crore customers. 2. It has pivoted towards end-to-end Direct Benefit Transfer, pension disbursement and credit referrals. 3. It leverages a network of over 1.64 lakh post offices and 1.90 lakh postmen and Gramin Dak Sevaks. 4. It has been granted a universal (commercial) banking licence by the RBI. Which of the above is/are correctly identified?

1. It has onboarded over 12 crore customers.
2. It has pivoted towards end-to-end Direct Benefit Transfer, pension disbursement and credit referrals.
3. It leverages a network of over 1.64 lakh post offices and 1.90 lakh postmen and Gramin Dak Sevaks.
4. It has been granted a universal (commercial) banking licence by the RBI.

• A. 1, 2 and 3
• B. 1 and 4
• C. 2, 3 and 4
• D. 1, 2, 3 and 4