Microtheme: "Financial Inclusion,PSL" —
9 questions asked in Prelims in the past.

1. [2026] Which of the following statements about M1xchange’s role in MSMEs financing is/are correct?
   1. M1xchange provides collateral based loans to MSMEs.
   2. M1xchange facilitates discounting of invoices and Bills of Exchange for MSMEs.
   3. M1xchange functions as a credit rating agency for MSMEs.
   • (a) 1, 2 and 3
   • (b) 2 only
   • (c) 2 and 3 only
   • (d) 1 only
   Correct Answer: (B) 2 only
2. [2026] Which one of the following correctly represents the three key sub-indices of the Financial Inclusion Index (FI-Index) of the RBI?
   • (a) Credit access, Insurance depth, and Pension coverage
   • (b) Banking access, GDP contribution, and Financial literacy
   • (c) Access, Usage, and Quality
   • (d) Access, Affordability, and Transparency
   Correct Answer: (C) Access, Usage, and Quality
3. [2023] Consider the following statements:
   1. The Self-Help Group (SHG) Programme was originally initiated by the State Bank of India by providing microcredit to the financial deprived.
   2. In an SHG, all members of a group take responsibility for a loan that an individual member takes.
   3. The Regional Rural Banks and Scheduled Commercial Banks support SHGs.
   How many of the above statements are correct?
   • (a) Only one
   • (b) Only two
   • (c) All three
   • (d) None
   Correct Answer: (B) Only two
4. [2023] Consider the following statements with reference to India:
   1. According to the ‘Micro, Small and Medium Enterprises Development (MSMED) Act, 2006’, the ‘medium enterprises’ are those with investments in plant and machinery between Rs. 15 crore and Rs. 25 crore.
   2. All bank loans to the Micro, Small and Medium Enterprises qualify under the priority sector.
   Which of the statements given above is/are correct?
   • (a) 1 only
   • (b) 2 only
   • (c) Both 1 and 2
   • (d) Neither 1 nor 2
   Correct Answer: (B) 2 only
5. [2019] The Service Area Approach was implemented under the purview of
   • (a) Integrated Rural Programme
   • (b) Lead Bank Scheme
   • (c) Mahatma Gandhi National Rural Employment Guarantee Scheme
   • (d) National Skill Development Mission
   Correct Answer: (B) Lead Bank Scheme
6. [2014] What is/are the facility/facilities the beneficiaries can get from the services of Business Correspondent (Bank Saathi) in branchless areas?
   1. It enables the beneficiaries to draw their subsidies and social security benefits in their villages.
   2. It enables the beneficiaries in the rural areas to make deposits and withdrawals.
   Select the correct answer using the code given below:
   • (a) 1 only
   • (b) 2 only
   • (c) Both 1 and 2 only
   • (d) Neither 1 nor 4
   Correct Answer: (C) Both 1 and 2 only
7. [2013] Priority Sector Lending by banks in India constitutes the lending to
   • (a) agriculture
   • (b) micro and small enterprises
   • (c) weaker sections
   • (d) All of the above
   Correct Answer: (D) All of the above
8. [2012] Which of the following can be said to be essentially the parts of ‘Inclusive Governance’?
   1. Permitting the Non-Banking Financial Companies to do banking
   2. Establishing effective District Planning Committees in all the districts
   3. Increasing the government spending on public health
   4. Strengthening the Mid-day Meal Scheme
   • (a) 1 and 2 only
   • (b) 3 and 4 only
   • (c) 2, 3 and 4 only
   • (d) 1, 2, 3 and 4
   Correct Answer: (C) 2, 3 and 4 only
9. [2010] With reference to India, Consider the following:
   1. Nationalization of Banks
   2. Formation of Regional Rural Banks
   3. Adoption of villages by Bank Branches
   Which of the above can be considered as steps taken to achieve the “financial inclusion” in India.
   • (a) 1 and 2 only
   • (b) 2 and 3 only
   • (c) 3 only
   • (d) 1,2 and 3
   Correct Answer: (D) 1,2 and 3