UPSC Prelims Practice Questions — 99.92% villages of the country covered with banking outlets (banking branch, BC, IPPB) within 5 km radius

Q1. Under the Pradhan Mantri Jan Dhan Yojana (PMJDY), what is the maximum amount of overdraft facility available to an eligible account holder?

• A. Rs 5,000
• B. Rs 10,000
• C. Rs 25,000
• D. Rs 50,000

Q2. Which one of the following schemes is officially designated by the Government of India as the 'National Mission for Financial Inclusion'?

• A. Pradhan Mantri Suraksha Bima Yojana
• B. Atal Pension Yojana
• C. Pradhan Mantri Jan Dhan Yojana
• D. Pradhan Mantri MUDRA Yojana

Q3. The Jan Dhan Darshak GIS application was developed for the Department of Financial Services by which one of the following agencies?

• A. National Payments Corporation of India (NPCI)
• B. National Informatics Centre (NIC)
• C. Centre for Development of Advanced Computing (C-DAC)
• D. Unique Identification Authority of India (UIDAI)

Q4. The Business Correspondent model, under which banks engage retail agents for last-mile delivery, was permitted by the RBI with reference to which one of the following statutory provisions?

• A. Section 45 of the Reserve Bank of India Act, 1934
• B. Section 23 of the Banking Regulation Act, 1949
• C. Section 7 of the Payment and Settlement Systems Act, 2007
• D. Section 8 of the Companies Act, 2013

Q5. With reference to the Business Correspondent (BC) model as distinct from a regular bank branch, consider the following statements: 1. A Business Correspondent is a retail agent engaged by a bank to deliver banking services at locations other than a bank branch. 2. The RBI first permitted banks to use the Business Correspondent model in 2006. 3. A Business Correspondent is empowered to independently sanction loans without any reference to the parent bank. Which of the statements given above is/are correct?

1. A Business Correspondent is a retail agent engaged by a bank to deliver banking services at locations other than a bank branch.
2. The RBI first permitted banks to use the Business Correspondent model in 2006.
3. A Business Correspondent is empowered to independently sanction loans without any reference to the parent bank.

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

Q6. With reference to India Post Payments Bank (IPPB) as compared with a scheduled commercial bank, consider the following statements: 1. IPPB was launched on 1 September 2018 under the Department of Posts. 2. Unlike a commercial bank, IPPB as a payments bank cannot undertake lending activity on its own. 3. IPPB is wholly owned by the Reserve Bank of India. Which of the statements given above is/are correct?

1. IPPB was launched on 1 September 2018 under the Department of Posts.
2. Unlike a commercial bank, IPPB as a payments bank cannot undertake lending activity on its own.
3. IPPB is wholly owned by the Reserve Bank of India.

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

Q7. With reference to the latest status of banking-outlet coverage of inhabited villages in India, consider the following: 1. About 99.92% of inhabited villages have a banking outlet within a 5 km radius. 2. Among the Union Territories, Lakshadweep is the one that has recorded 100% village coverage. 3. Coverage is tracked through the Jan Dhan Darshak GIS application. 4. The residual uncovered villages are attributed mainly to connectivity and infrastructure deficits. Which of the above is/are correctly identified?

1. About 99.92% of inhabited villages have a banking outlet within a 5 km radius.
2. Among the Union Territories, Lakshadweep is the one that has recorded 100% village coverage.
3. Coverage is tracked through the Jan Dhan Darshak GIS application.
4. The residual uncovered villages are attributed mainly to connectivity and infrastructure deficits.

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

Q8. Monitoring of the norm that a banking outlet (branch, Business Correspondent or IPPB) be available within 5 km of every inhabited village, through the Jan Dhan Darshak app, is operationalised by which one of the following?

• A. Department of Posts, Ministry of Communications
• B. Department of Financial Services, Ministry of Finance
• C. Department of Rural Development, Ministry of Rural Development
• D. National Bank for Agriculture and Rural Development (NABARD)

Q9. With reference to the regulatory features of a payments bank in India, consider the following: 1. It can accept demand deposits up to Rs 2 lakh per individual customer. 2. It cannot undertake lending or issue loans on its own account. 3. It can issue ATM/debit cards to its customers. 4. It can issue credit cards to its customers. Which of the above is/are correctly identified?

1. It can accept demand deposits up to Rs 2 lakh per individual customer.
2. It cannot undertake lending or issue loans on its own account.
3. It can issue ATM/debit cards to its customers.
4. It can issue credit cards to its customers.

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

Q10. The Financial Inclusion Index (FI-Index), which rose to 67.0 for the year ending March 2025, is compiled and published by which one of the following?

• A. NITI Aayog
• B. Department of Financial Services, Ministry of Finance
• C. Reserve Bank of India
• D. National Statistical Office