UPSC Prelims Practice Questions — India achieves near-universal banking coverage, with 99.92% of inhabited villages now served by a banking outlet

Question 1

With reference to the entitlements attached to an account opened under the Pradhan Mantri Jan Dhan Yojana, consider the following:
1. A RuPay debit card issued free of cost, carrying an inbuilt accident insurance cover of ₹2 lakh
2. An overdraft facility of up to ₹10,000
3. Exemption from any minimum balance requirement, subject to payment of a monthly account-maintenance charge
4. A minimum of four withdrawals in a month, including ATM withdrawals, free of charge
Which of the above is/are correctly identified?

Accepted Answer

1, 2 and 4

Answer

1, 2 and 3

Answer

2, 3 and 4

Answer

1, 3 and 4

Question 2

Consider the following statements comparing the flagship financial inclusion and social security schemes administered by the Department of Financial Services, as on 31 December 2025:
1. Cumulative enrolment under the Pradhan Mantri Suraksha Bima Yojana exceeded cumulative enrolment under the Pradhan Mantri Jeevan Jyoti Bima Yojana.
2. The number of accounts opened under the Pradhan Mantri Jan Dhan Yojana exceeded the number of subscribers enrolled under the Atal Pension Yojana.
3. Among the Pradhan Mantri Jan Dhan Yojana, the Pradhan Mantri Jeevan Jyoti Bima Yojana and the Pradhan Mantri Suraksha Bima Yojana, the largest cumulative beneficiary base was under the Pradhan Mantri Jeevan Jyoti Bima Yojana.
Which of the statements given above is/are correct?

Accepted Answer

1 and 2 only

Answer

1 only

Answer

2 and 3 only

Answer

1, 2 and 3

Question 3

The Jan Dhan Darshak application was developed and rolled out for the Department of Financial Services in collaboration with which one of the following organisations?

Accepted Answer

National Informatics Centre, under the Ministry of Electronics and Information Technology

Answer

National Payments Corporation of India, promoted by the RBI and the Indian Banks' Association

Answer

Centre for Development of Advanced Computing, under the Ministry of Electronics and Information Technology

Answer

National Internet Exchange of India, under the Ministry of Electronics and Information Technology

Question 4

Villages identified through the Jan Dhan Darshak application as lacking a banking outlet within the prescribed radius are allotted to particular banks for opening such outlets by which one of the following bodies?

Accepted Answer

The State Level Bankers' Committee constituted for the concerned State

Answer

The District Consultative Committee constituted for the concerned district

Answer

The Regional Office of the Reserve Bank of India in the concerned State

Answer

The Financial Stability and Development Council chaired by the Union Finance Minister

Question 5

With reference to the reported coverage of 99.92% of inhabited villages by banking outlets, consider the following:
1. Coverage is reckoned as the availability of a banking outlet within a radius of 5 km of the village.
2. Bank branches, Business Correspondents and India Post Payments Bank outlets all count as banking outlets for this purpose.
3. Among the Union Territories, Dadra and Nagar Haveli reported complete coverage of its villages.
4. The coverage figures are compiled from data uploaded by the State Governments rather than by the banks.
Which of the above is/are correctly identified?

Accepted Answer

1, 2 and 3

Answer

1, 2 and 4

Answer

2, 3 and 4

Answer

1, 3 and 4

Question 6

Consider the following statements regarding the different channels through which banking access is delivered to villages in India:
1. A Business Correspondent is a retail agent engaged by a bank to deliver banking services at a location other than a bank branch, and BC outlets are reckoned alongside branches while assessing village banking coverage.
2. India Post Payments Bank functions under the Department of Posts with the entire equity held by the Government of India, whereas a Business Correspondent operates on behalf of, and is engaged by, a bank.
3. Unlike a bank branch, an India Post Payments Bank outlet is not treated as a banking outlet for the purpose of the prescribed distance norm.
Which of the statements given above is/are correct?

Accepted Answer

1 and 2 only

Answer

1 only

Answer

2 and 3 only

Answer

1, 2 and 3

Question 7

Under the Pradhan Mantri Jan Dhan Yojana all villages of the country were mapped into 1.59 lakh Sub Service Areas. Of these, approximately how many Sub Service Areas were served through the deployment of interoperable Business Correspondents rather than through bank branches?

Accepted Answer

1.26 lakh

Answer

0.33 lakh

Answer

0.65 lakh

Answer

1.52 lakh

Question 8

India Post Payments Bank delivers its services by leveraging the postal network. Approximately how many of the post offices in this network are located in rural areas?

Accepted Answer

1.43 lakh

Answer

0.65 lakh

Answer

1.10 lakh

Answer

1.90 lakh

Question 9

With reference to recent measures to strengthen the cyber security of digital payments and curb financial frauds, consider the following:
1. MuleHunter.AI, an artificial intelligence tool for identifying money mule accounts, has been developed by the Reserve Bank Innovation Hub, a wholly owned subsidiary of the Reserve Bank of India.
2. The Indian Cyber Crime Coordination Centre, which maintains a suspect registry of cyber criminal identifiers, functions under the Ministry of Home Affairs.
3. In 2026 the Indian Cyber Crime Coordination Centre and the Reserve Bank Innovation Hub entered into a memorandum of understanding covering fraud-risk intelligence sharing and analytical support.
4. Under the revised instructions on unauthorised electronic banking transactions placed for consultation in 2026, the bank bears the entire loss in all cases of fraudulent electronic transactions, regardless of any negligence on the customer's part.
Which of the above is/are correctly identified?

Accepted Answer

1, 2 and 3

Answer

1, 2 and 4

Answer

2, 3 and 4

Answer

1, 3 and 4

Question 10

Consider the following statements comparing the district-level and State-level fora of the Lead Bank Scheme:
1. The District Consultative Committee is chaired by the District Collector, whereas the State Level Bankers' Committee is chaired by the Chairman and Managing Director or an Executive Director of the convenor bank.
2. The Lead Bank Scheme was introduced by the Reserve Bank of India in 1969, while the State Level Bankers' Committee was constituted later, in 1977.
3. Unlike the District Consultative Committee, which meets at quarterly intervals, the State Level Bankers' Committee is required to meet only once a year.
Which of the statements given above is/are correct?

Accepted Answer

1 and 2 only

Answer

1 only

Answer

2 and 3 only

Answer

1, 2 and 3

UPSC Prelims Practice Questions — India achieves near-universal banking coverage, with 99.92% of inhabited villages now served by a banking outlet

Q3. The Jan Dhan Darshak application was developed and rolled out for the Department of Financial Services in collaboration with which one of the following organisations?

Q4. Villages identified through the Jan Dhan Darshak application as lacking a banking outlet within the prescribed radius are allotted to particular banks for opening such outlets by which one of the following bodies?

Q7. Under the Pradhan Mantri Jan Dhan Yojana all villages of the country were mapped into 1.59 lakh Sub Service Areas. Of these, approximately how many Sub Service Areas were served through the deployment of interoperable Business Correspondents rather than through bank branches?

Q8. India Post Payments Bank delivers its services by leveraging the postal network. Approximately how many of the post offices in this network are located in rural areas?