SSC CGL DEST Previous Year – Banking & Financial Inclusion

Financial inclusion is the process of ensuring access to financial services, including banking, insurance and credit, to all segments of the population, particularly the poor and the marginalised. In India, a large proportion of the population has historically been excluded from the formal financial system. They have had to rely on moneylenders who charge exorbitant interest rates, trapping them in a cycle of debt. The Pradhan Mantri Jan Dhan Yojana, launched in 2014, has been a game-changer in terms of financial inclusion. Under the scheme, hundreds of millions of bank accounts have been opened for people who were previously unbanked. These accounts come with a RuPay debit card and an overdraft facility. The scheme has been linked with the Aadhaar biometric identification system, which has made it easier to open accounts and transfer benefits directly. Mobile banking and the Unified Payments Interface have made it possible for people without access to bank branches to conduct financial transactions using their smartphones. The Jan Suraksha schemes, including Pradhan Mantri Jeevan Jyoti Bima Yojana, Pradhan Mantri Suraksha Bima Yojana and Atal Pension Yojana, provide life insurance, accident insurance and pension to people at affordable premiums. Micro-finance institutions provide small loans to entrepreneurs in rural and semi-urban areas. Financial literacy programmes help people understand financial products and make informed decisions. Financial inclusion is essential for poverty reduction and economic empowerment of the marginalised sections of society.