UPSC Prelims Practice Questions — Government's Financial Inclusion Mission Continues to Foster Economic Empowerment Through Universal Banking, Social Security and Credit Access

Q1. With reference to the benefits available under the Pradhan Mantri Jan Dhan Yojana (PMJDY), consider the following: 1. An overdraft facility of up to ₹10,000. 2. A free RuPay debit card carrying an in-built accident insurance cover of ₹2 lakh. 3. An interest-subvented crop loan of up to ₹3 lakh. 4. A Basic Savings Bank Deposit account operable with zero balance and zero charges. Which of the above are correctly identified as benefits under PMJDY?

  1. An overdraft facility of up to ₹10,000.
  2. A free RuPay debit card carrying an in-built accident insurance cover of ₹2 lakh.
  3. An interest-subvented crop loan of up to ₹3 lakh.
  4. A Basic Savings Bank Deposit account operable with zero balance and zero charges.
  • A. 1, 2 and 3
  • B. 1, 3 and 4
  • C. 1, 2 and 4
  • D. 2, 3 and 4

Q2. Consider the following schemes: 1. Pradhan Mantri Jeevan Jyoti Bima Yojana. 2. Pradhan Mantri Suraksha Bima Yojana. 3. Pradhan Mantri MUDRA Yojana. 4. Atal Pension Yojana. Which of the above are correctly identified as constituents of the 'Jan Suraksha' (social security) group of schemes?

  1. Pradhan Mantri Jeevan Jyoti Bima Yojana.
  2. Pradhan Mantri Suraksha Bima Yojana.
  3. Pradhan Mantri MUDRA Yojana.
  4. Atal Pension Yojana.
  • A. 1 and 2 only
  • B. 1, 2 and 4
  • C. 2, 3 and 4
  • D. 1, 3 and 4

Q3. The three Jan Suraksha schemes — PMJJBY, PMSBY and APY — are administered by which one of the following?

  • A. The Department of Economic Affairs, Ministry of Finance
  • B. The Department of Financial Services, Ministry of Finance
  • C. The Ministry of Labour and Employment, Government of India
  • D. The Department of Revenue, Ministry of Finance

Q4. Consider the following statements comparing the Atal Pension Yojana (APY) with the other Jan Suraksha schemes: 1. APY caps the entry age at 40 years, lower than the 50-year ceiling of PMJJBY and the 70-year ceiling of PMSBY. 2. APY provides a guaranteed monthly pension in five slabs, whereas PMJJBY provides a lump-sum life cover of ₹2 lakh. 3. Like PMSBY, the pension benefit under APY commences at the age of 55 years. Which of the statements given above is/are correct?

  1. APY caps the entry age at 40 years, lower than the 50-year ceiling of PMJJBY and the 70-year ceiling of PMSBY.
  2. APY provides a guaranteed monthly pension in five slabs, whereas PMJJBY provides a lump-sum life cover of ₹2 lakh.
  3. Like PMSBY, the pension benefit under APY commences at the age of 55 years.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q5. Under the Atal Pension Yojana, the 'government co-contribution' made available to eligible early subscribers meant which one of the following?

  • A. The government matching 100% of the subscriber's first-year contribution, subject to a maximum of ₹5,000
  • B. A one-time seed contribution of ₹1,000 credited to the subscriber's account on attaining the age of 60
  • C. 50% of the subscriber's total annual contribution or ₹1,000 per annum, whichever is lower, for a period of 5 years
  • D. An annual contribution by the government equal to the subscriber's own contribution for the entire deposit period

Q6. As per the current framework, how many loan categories exist under the Pradhan Mantri MUDRA Yojana, and which body refinances such loans?

  • A. Three categories, refinanced through SIDBI's Credit Guarantee Fund Trust (CGTMSE)
  • B. Five categories, refinanced through the National Bank for Agriculture and Rural Development (NABARD)
  • C. Four categories, refinanced through MUDRA (Micro Units Development & Refinance Agency)
  • D. Four categories, refinanced through the Small Farmers' Agri-Business Consortium (SFAC)

Q7. Under the Pradhan Mantri MUDRA Yojana, the 'Tarun Plus' category refers to which one of the following?

  • A. Collateral-free loans above ₹5 lakh and up to ₹10 lakh for first-time micro-entrepreneurs expanding operations
  • B. Collateral-free loans up to ₹50,000 for nascent, early-stage micro-businesses
  • C. Collateral-free loans above ₹50,000 and up to ₹5 lakh for enterprises seeking working-capital support
  • D. Collateral-free loans above ₹10 lakh and up to ₹20 lakh for entrepreneurs who have availed and successfully repaid a Tarun loan

Q8. Consider the following statements about the parameters of the RBI Financial Inclusion Index (FI-Index): 1. The Index comprises three parameters — Access, Usage and Quality — of which Usage carries the highest weight, at 45%. 2. The Quality parameter, weighted 20%, captures aspects such as financial literacy and consumer protection. 3. The Access parameter carries a weight of 45%, which is higher than that assigned to the Usage parameter. Which of the statements given above is/are correct?

  1. The Index comprises three parameters — Access, Usage and Quality — of which Usage carries the highest weight, at 45%.
  2. The Quality parameter, weighted 20%, captures aspects such as financial literacy and consumer protection.
  3. The Access parameter carries a weight of 45%, which is higher than that assigned to the Usage parameter.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q9. In the RBI Financial Inclusion Index, the 'Quality' parameter is designed to capture which one of the following?

  • A. The ease and physical availability of banking outlets, branches and access points across regions
  • B. The frequency and extent to which people actually use the financial services available to them
  • C. Aspects such as financial literacy, consumer protection, and reduction in inequalities and deficiencies in services
  • D. The proportion of the adult population that holds at least one operative bank account

Q10. As per the latest cumulative figures (mid-2026), consider the following scheme–figure pairs: 1. PMJDY — 58.63 crore accounts with deposits exceeding ₹3.08 lakh crore. 2. PM MUDRA Yojana — 59.14 crore loans sanctioned amounting to ₹41.71 lakh crore. 3. Pradhan Mantri Suraksha Bima Yojana — cumulative enrolments of 27.84 crore. 4. Atal Pension Yojana — cumulative enrolments of 9.29 crore. Which of the above pairs are correctly matched?

  1. PMJDY — 58.63 crore accounts with deposits exceeding ₹3.08 lakh crore.
  2. PM MUDRA Yojana — 59.14 crore loans sanctioned amounting to ₹41.71 lakh crore.
  3. Pradhan Mantri Suraksha Bima Yojana — cumulative enrolments of 27.84 crore.
  4. Atal Pension Yojana — cumulative enrolments of 9.29 crore.
  • A. 1, 2 and 3
  • B. 1, 2 and 4
  • C. 2, 3 and 4
  • D. 1 and 4 only

Q11. Consider the following statements: 1. The Atal Pension Yojana is administered by the Pension Fund Regulatory and Development Authority (PFRDA). 2. PMJJBY and PMSBY, being insurance schemes, fall within the regulatory purview of the Insurance Regulatory and Development Authority of India (IRDAI). 3. All five schemes — PMJDY, PMJJBY, PMSBY, APY and PMMY — are implemented by the Department of Financial Services, Ministry of Finance. 4. The Pradhan Mantri MUDRA Yojana completed 11 years of implementation in April 2025. Which of the above are correctly identified?

  1. The Atal Pension Yojana is administered by the Pension Fund Regulatory and Development Authority (PFRDA).
  2. PMJJBY and PMSBY, being insurance schemes, fall within the regulatory purview of the Insurance Regulatory and Development Authority of India (IRDAI).
  3. All five schemes — PMJDY, PMJJBY, PMSBY, APY and PMMY — are implemented by the Department of Financial Services, Ministry of Finance.
  4. The Pradhan Mantri MUDRA Yojana completed 11 years of implementation in April 2025.
  • A. 1, 2 and 4
  • B. 2, 3 and 4
  • C. 1, 2 and 3
  • D. 1, 3 and 4